Glasgow Mini-Flip Portfolio Builder Strategy: From £28k to a Growing, Strong Cashflow Buy-to-Let Portfolio

Glasgow · Mini-flip / BRRR / portfolio

An investor purchased a buy-to-let property in Glasgow using a standard 75% LTV mortgage.

Initial investment

Purchase price: Approx. £80,000
Mortgage deposit (75% LTV mortgage): Approx. £20,000
LBTT & ADS (Land and Buildings Transaction Tax & Additional Dwelling Supplement): Approx. £6,400
Legal & professional fees: Approx. £1,500
Total capital invested: Approx. £27,900

An investor purchased a buy-to-let property in Glasgow using a standard 75% LTV mortgage.

The property was located in a fast-growing area of the city and generated rental income from the outset.

During ownership, a number of cosmetic improvements and light refurbishment works were carried out. Rather than injecting additional personal capital, these improvements were funded gradually using part of the rental income generated by the property.

The combination of the property's location within a fast-growing area and the additional value created through these improvement works resulted in a significant increase in value over the ownership period.

Rental performance

Monthly rent: approx. £900/month
Net income after management, insurance, maintenance & other running costs (before mortgage): approx. £750/month
Mortgage payment: approx. £200/month
Net income after mortgage payments: approx. £550/month
Approx. £6,600 annual net income
Cash-on-cash return (before equity capital appreciation): approx. 24% annually
Approx. £13,200 net rental income collected over two years

Refinance position after approximately 2 years

Original purchase price: Approx. £80,000
New valuation: Approx. £110,000
Increase in value: Approx. £30,000
New mortgage (75% LTV): Approx. £82,500
Capital released after redeeming the original mortgage: Approx. £22,500

Combined with part of the rental income accumulated during the ownership period, the investor had sufficient funds available to fund the deposit, taxes and acquisition costs required for the purchase of a second buy-to-let property. Importantly, the original property was retained and continued to generate rental income. Rather than selling the asset, the investor used the refinance proceeds to expand the portfolio while maintaining ownership of the original investment.

Results

Total initial capital invested: Approx. £27,900
Net rental income received over 2 years: Approx. £13,200
Capital released through refinance: Approx. £22,500
Original property retained: Yes
Second property funded: Yes
Growing portfolio with strong cashflow: Yes
In simple terms: A Glasgow buy-to-let purchased with less than £30,000 of starting capital that generated strong cashflow, increased in value through market growth and light refurbishment works, and released sufficient capital through refinance to help fund a second investment property while retaining the original asset

Past performance is not a guide to future results. Figures reflect a specific client situation, market conditions at the time, and agreed fees. Your outcome will depend on your strategy, financing, and the property you buy.

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