Mr Morgan is a seasoned buy to let investor in the UK. He was interested to see what yields could be achieved in American Property. He had previously dabbled in Spain but the language barrier and legal system had proved troublesome. He wanted a property that would be a good long term investment to give an income for life.
We showed him some property in Minneapolis with yields 3 times higher than his UK portfolio was achieving. Mr M purchased for £45,500 and once the refurbishment work was complete he was given a gross rental valuation of £1010 ($1625 based on an assumed 1 - 1.61 exchange rate) per month. This equated to a yield of 26.6% and meant he would have his capital back in under 6 years and 100% income thereafter. Mr Morgan was not particularly concerned about capital appreciation but after the refurbishment work was carried out it was valued at approx 52% more than his initial investment(£69,160).
More Case Studies