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Research Demo Video
Guerrilla Property Goldmine
1. Find market rent for area & property type
2. Estimate approx. market values
3. Calculate gross yield
4. Calculate gross profit & ROI
Guerrilla Property Goldmine
1. Find market rent for area & property type
2. Estimate approx. market values
3. Calculate gross yield
4. Calculate gross profit & ROI LHA Direct
Potential Area 1 - Mossley Hill, L18
Rental value:
Weekly LHA = £119.67
Annual LHA = £6,222.84
Monthly LHA = £518.57
Guerrilla Property Goldmine
1. Find market rent for area & property type
2. Estimate approx. market values
3. Calculate gross yield
4. Calculate gross profit & ROI Rightmove
Guerrilla Property Goldmine
1. Find market rent for area & property type
2. Estimate approx. market values
3. Calculate gross yield
4. Calculate gross profit & ROI
Potential Area 1 - Mossley Hill, L18
Calculate gross yield (Annual rent / Purchase price):
Purchase = £140,000
Annual LHA = £6,222.84
Gross yield = 4.44%
Guerrilla Property Goldmine
1. Find market rent for area & property type
2. Estimate approx. market values
3. Calculate gross yield
4. Calculate gross profit & ROI
Potential Area 1 - Mossley Hill, L18
Calculate gross profit at 4% mortgage rate:
Purchase = £140,000
Deposit (25%) = £35,000
Mortgage @ 4% = £350 pcm
Gross cash flow = (£518.57 LHA - £350) = £168.57 = £2,022.84 p/a
ROI = Annual profit / Deposit = £2,022.84 / £35,000 = 5.77%
Potential Area 2 - Anfield, L4
Rental value:
Weekly LHA = £119.67
Annual LHA = £6,222.84
Monthly LHA = £518.57
Potential Area 2 - Anfield, L4
Calculate gross yield (Annual rent / Purchase price):
Purchase = £50,000
Annual LHA = £6,222.84
Gross yield = 12.44%
Potential Area 2 - Anfield, L4
Calculate gross profit at 4% mortgage rate:
Purchase = £50,000
Deposit (25%) = £12,500
Mortgage @ 4% = £125 pcm
Gross cash flow = (£518.57 LHA - £125) = £393.57 = £4,722.84 p/a
ROI = Annual profit / Deposit = £4,722.84 / £12,500 = 37.78%
Area 1 vs Area 2
Which would you invest in?
Deposit: £35,000 vs £12,500
Gross yield: 4.44% vs 12.44%
Gross cash flow: £168.57 vs £393.57
Gross ROI: 5.55% vs 37.78%
Not Fully Comprehensive!
• Tenant demand
• Housing stock condition
• Management costs
• Capital growth prospects
• Infrastructure etc
• Use Due Diligence Checklist!