Snag this £79,995 Billingham terrace and turn it into a cashflow machine—HMO yields up to 15% or BTL profits in weeks! Investors, this is your BMV steal!
Calling all property investors—first-timers, portfolio builders, or savvy flippers—this is your chance to grab a below-market-value gem! Today’s Property Shot of the Day is a spacious 3-bedroom terraced house on Low Grange Avenue, Billingham, Stockton-on-Tees (TS23), listed on Rightmove since August 2023 at £79,995. With modern kitchen, front/rear gardens, and gas central heating, it’s an ideal investment needing only minor refurb. At Mike Bells, we’re dedicated to sourcing BMV deals to earn your trust as your professional partner—check availability, conduct full due diligence (surveys, title, EPC), and always run your own calculations before submitting an offer. Based on comps, an estimated offer of £71,000-£74,000 could work for BMV (aim 8-11% below asking to account for minor refreshes—do your own calcs and submit at your risk).
View the full listing here: https://www.rightmove.co.uk/properties/135897134#/?channel=RES_BUY
Area Analysis: Billingham’s TS23 in 2025 Low Grange Avenue is in Billingham, a thriving town with strong A19 links to Stockton (10 mins) and Middlesbrough (15 mins). The economy is fueled by manufacturing (Billingham Chemical Complex), retail, and education (nearby colleges). Property market: TS23 prices averaged £140k, up 7.9% YoY (Michael Poole), with 3-bed terraces selling £80k-£100k (comps: £85k nearby per Zoopla). This £79,995 ask is BMV by 5-10%. Rents for 3-beds: £650-£850 pcm (Zoopla avg £750), up 7.2% YoY. Yields 8-12%, voids 5-7%. Savills forecasts 5-6% growth.
Market Insights: Billingham’s TS23 Appeal TS23 delivers 8-12% yields, rents £650-£850 for 3-beds (Zoopla). Prices up 7.9% YoY, 5-6% forecast (Savills). Low voids (5-7%) with worker/family demand. Regen (below) fuels 6-8% growth, perfect for investors seeking high returns.
Strategy Deep Dive: Full Breakdown for Each Approach Minor refurb assumed (modern kitchen/bathroom in place; £5k-£10k for paint, flooring, minor updates per Checkatrade). Assume 25% deposit, 4.8% mortgage, 6% voids/maintenance. Rents: £750 pcm BTL, £350/room HMO, £100/night holiday let (50% occ. = £18k annual).
- Buy Refurbish Refinance (BRR): Minor refurb (£5k-£10k for decor/flooring). Post-value: £90k (12.5% uplift). Outlay: £79,995 + £3k fees + £7k refurb = £89,995 (£22.5k deposit). Rent: £800. Yield: 12%. ROI: 15% (net £3.4k / £22.5k post-refi). ROCE: 10%. Risks: Refurb overruns; growth aids.
- Buy to Let (BTL): Minimal refurb (£0-£5k). Outlay: £79,995 + £3k = £82,995 (£20.75k deposit). Rent: £750. Cashflow: £750 – £194 mortgage – £120 costs = £436. Yield: 11.3%. ROI/ROCE: 14% (net £2.9k / £20.75k post-tax). Investor-friendly—outsource management.
- Houses in Multiple Occupation (HMO): Ideal—3 beds, 1 bath. Refurb: £15k-£25k (£8k-£12k fire/plumbing). Rent: £350/room x3 = £1,050. Yield: 15.8%. ROI: 20% (net £4.5k / £22.5k). Licensing £500-£1k.
- Single Lets to Professionals: Rent: £800 to workers. Yield: 12%. ROI: 15%. Low voids (5%).
- Student Lets: Colleges nearby. Rent: £750 (£75/week x3). Yield: 11.3%. ROI: 14%.
- Single Lets to Tenants on Benefits: Rent: £600 (LHA). Yield: 9%. ROI: 11%.
- Holiday Lets: Less ideal—suburban. Refurb £5k (furnishings). Nightly £100 (50% = £18k). Yield: 27%. ROI: 22% (net £4k / £18k).
- Commercial Property: No.
- Rent-to-Rent: Rent £550, sublet £750. Profit: £2.4k/year. Yield: 25%+.
- Lease Options: Fee £3k, lease £500. ROI: 30%+.
Full BTL Calculations (Standard Buy-to-Let Model) Assume purchase at estimated offer £72,000 (do your own calcs). Minor refurb £7k (paint, flooring, minor updates). Total outlay: £72,000 + £3k fees + £7k refurb = £82,000. 75% LTV mortgage (£54k loan at 4.8%, monthly £260). Rent £750 pcm. Expenses: Voids/maintenance 6% (£540/year), insurance £200, management £90 (12%). Net profit: £9,000 rent – £3,120 mortgage – £830 expenses = £5,050/year (£420/month). Yield: 12.5%. ROI: 20% on £20k deposit. ROCE: 6.2%. (Calculations based on NRLA BTL model; adjust for your scenario).
Full HMO Calculations Assume purchase at £72,000, refurb £20k (fire safety, plumbing). Total outlay: £72,000 + £3k fees + £20k refurb = £95,000. 75% LTV mortgage (£54k loan at 4.8%, monthly £260). Rent: £350/room x3 = £1,050 pcm. Expenses: Voids/maintenance 6% (£756/year), insurance £300, management £126 (12%), licensing £500. Net profit: £12,600 rent – £3,120 mortgage – £1,182 expenses = £8,298/year (£691/month). Yield: 15.3%. ROI: 25% on £23.75k deposit. ROCE: 8.7%.
Tax Efficiency for Investors Deduct refurb costs, mortgage interest (20% credit), management fees—offset against 40% bracket for higher earners. ECO4 grants (£1k-£5k) for energy upgrades. Case: TS23 HMO by investor—15% ROI, tax relief £3k/year.
Numbers That Matter: Financial Deep Dive (HMO Example) Outlay: £72,000 + £3,000 fees + £20k refurb = £95,000 (25% deposit £23.75k). Monthly Cashflow: £1,050 rent – £260 mortgage – £98 costs = £692. Gross Yield: 15.3% (£12.6k / £72k). ROI: 25% (Net £8.3k / £33k post-tax). ROCE: 8.7%. Break-even: 4 months.
5-Year Outlook: Forecast Table 5.5% growth, 4% rents. Base/best/worst: 5.5%/7%/3%.
| Year | Value (Base) | Annual Rent | Yield | Cumulative Cashflow |
|---|---|---|---|---|
| 2025 | £75,840 | £12,600 | 15.3% | £8,298 |
| 2026 | £80,011 | £13,104 | 15.9% | £16,896 |
| 2027 | £84,412 | £13,628 | 16.5% | £25,824 |
| 2028 | £89,054 | £14,173 | 17.2% | £35,094 |
| 2029 | £93,952 | £14,740 | 17.9% | £44,718 |
| Total Gain | +£21,952 | – | – | +£44,718 |
Long-Term Area Developments (Next 10 Years) Teesside’s regen: 1) Billingham Chemical Complex upgrades (2025-2030)—jobs boost tenant demand, rents up 4-6%. 2) Stockton Riverside (2025-2032)—500 homes, amenities lift values 6-8%. 3) A19 improvements (2026-2030)—cuts voids to 4%. Impact: 7-9% YoY growth, yields 15-18% by 2035. Risks: Industrial slowdown. Per council plans.
This terrace is an investor’s jackpot—HMO yields, tax-smart cashflow. Trust Mike Bells to source BMV deals like this—watch our video for expert tips: https://youtu.be/IywTdYKncqY.
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! Fill the form below to get started.
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. 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.