Imagine spotting a spacious 3-bed terrace in Billingham while scrolling Rightmove, priced at just £79,995 after a 15.8% drop—could this be your next cashflow machine or a motivated seller’s headache? Mike Bells here, breaking it down for North East investors. With rents soaring 8.9% and demand up 11% (Zoopla 2025), deals like this scream opportunity. But let’s get real: Is it a BRR winner or void trap? Read on for the full scoop.
Property Snapshot: What You’re Getting
This mid-terrace on Low Grange Avenue (TS23) is an ideal investment starter: Freehold, 3 beds, double glazing, gas central heating, front/rear gardens, and a family bathroom with shower. Kitchen spans 14ft with wall/base units and understairs storage; arch leads to dining/living areas (13x10ft living). Upstairs: Three generous bedrooms (up to 15x7ft) and a large landing cupboard with boiler. Condition: Modern but dated—cosmetic updates needed, no major issues listed. Link: https://www.rightmove.co.uk/properties/135897134#/?channel=RES_BUY. Reduced from £95,000 (June 2023), signaling flexibility.
Location story: Billingham’s industrial heart (near Stockton/Teesside) means steady tenant demand from workers, with amenities like shops/schools walking distance. But it’s not all roses—average crime, so target reliable renters.
Market Insights: Billingham’s 2025 Potential
The North East shines for affordability, with prices +7.9% YoY (Rightmove) and Tees Valley regen (£1bn+ by 2030) fueling growth. Billingham avg. £150k, rents £700-£800 for 3-beds—yields 8-12%. Supply shortages boost lets, but 3.4% inflation (Savills) pressures flips. For you: High demand from commuters makes this a cashflow play, especially post-refurb.
Numbers That Matter: Financial Deep Dive
Outlay: £79,995 + £10k-£20k refurb + £5k fees = £95k-£105k (25% deposit).
- Monthly Cashflow (BTL): £750 rent – £350 mortgage/maintenance = £400 positive.
- Yield: 9-13%; ROI Year 1: 15-20%. Break-even: 3-5 months. Stackable for £1k+ monthly portfolio income.
Strategies to Maximize Returns
- BRR: Refurb to £110k value, refinance for £15k-£25k cash-out—scale fast.
- HMO: 4 rooms at £350 each (£1,400/month)—18-22% yields, but licensing £500.
- BTL: Easy £400 cashflow for hands-off.
- Flip: £20k profit in 3 months, but reductions hint at slow sales.
Question for you: Which strategy fits your style—comment below!
Risks: The Real Talk
Price drops suggest market softness; industrial area risks voids. Mitigation: Survey (£500), 10% buffer. Overall 8/10—strong for cashflow pros.
5-Year Outlook: Forecast Table
(3.5% growth, 4% rents per GOV.UK/Savills):
| Year | Value | Rent | Yield | Cashflow |
|---|---|---|---|---|
| 2025 | £100k | £750 | 9% | £4,800 |
| 2026 | £103.5k | £780 | 9.0% | £4,960 |
| 2027 | £107.1k | £811 | 9.1% | £5,132 |
| 2028 | £110.9k | £843 | 9.1% | £5,316 |
| 2029 | £114.8k | £877 | 9.1% | £5,512 |
| Total | +£14.8k | – | – | +£25,720 |
Ready to turn investments like this into portfolio growth? Schedule a free 30-minute strategy call with Mike Bells now—discover how we can help you secure high-yield deals and scale faster. Spots are limited, so book today! If you’re looking to sell your property quickly and hassle-free, we’re here to make it happen—fill out the form below for a no-obligation quote.
This content is provided by Mike Bells Property Sourcing for informational and educational purposes only and does not constitute personalized financial, investment, or legal advice. Properties featured, such as Low Grange Avenue, Billingham, are not affiliated with, managed by, or offered for sale through us. We make no representations or warranties of any kind, express or implied, regarding the accuracy, completeness, or suitability of this information. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Mike Bells accepts no liability for any losses or damages arising from reliance on this material. Always conduct your own thorough due diligence, consult independent financial advisors, and verify details before making investment decisions.