Analytics Streamline Icon: https://streamlinehq.com analytics
38.4%
Total ROCE
£1,450
Monthly Rental
£52,500
Day 1 Equity
8.2%
Gross Rental Yield
Uncover the full success story

Rochester 2-Bed Terraced Home Purchased 15% Below Asking, Refurbished and Refinance Completed

Unity Investments acquired this two-bedroom terraced home in Strood, Rochester for £212,500, planning a £15,000 refurbishment to enhance value and rental potential. After the refurbishment, the property was refinanced for £265,000, unlocking additional capital while maintaining strong rental performance.

Property Overview

  • Property
    2-bedroom terraced home
  • Location
    Rochester, Kent, ME2
  • Purchase Date
    April 2025

Key purchase details

  • Purchase price:
    £212,500 (15% below)
  • Comparable market value at purchase:
    £250,000
  • Below market discount:
    £37,500

Fnding breakown

  • Total cash invested:
    £68,125 (inc £15k refurb)
  • Deposit (25%):
    £53,125
  • Mortgage:
    £159,375 @ 5.5% interest only

Why selected

  • Below-market purchase:
    Acquired 15% under asking, providing instant equity
  • Commuter-friendly:
    Easy access to Strood station, A2 and M2 links
  • Value-add opportunity:
    Refurbishment planned to enhance property & rental potential

Equity Position

  • Estimated Market Value Today:
    £265,000
  • Instant Equity from Purchase:
    £52,500
  • Months Since Purchase:
    10 months

Additional costs

  • Stamp Duty:
    £2,125 (additional property rate)
  • Legal fees:
    £750
  • Refurb:
    £15,000

Financial Performance Dashboard

This section breaks down the property’s performance in clear, measurable terms. From headline yields and leveraged returns to the monthly cash flow position, you can see exactly how this investment is working. The figures highlight not just the strength of the rental income, but also the impact of market growth and smart financing, giving a complete picture of both immediate income and long-term wealth creation.

Yield Analysis

Local Average Gross Yield
5.5%
Your Gross Yield
8.2%
+0.15 above local market
This Rochester home offers above-average rental returns in a strong commuter market, with potential for capital growth after refurbishment.
Gross Rental Yield: 
8.2%
Calculation: (£1,450 × 12) ÷ £212,500

Return on Capital Employed (ROCE)

Rental ROCE
5.8%
Total ROCE
38.4%
Generates dependable rental income relative to invested cash, providing a solid first-year return.
Total ROCE: 
38.4%
(£1,450 × 12 - £875 mortgage interest × 12 - £50 insurance - £50 maintenance) ÷ £56,875

Income Return on Capital

Traditional Cash Savings generates just 
£400
/year per £10k
£400
Property Investment generates over 
£4,128
/year per £10k
£4,128
Property investment is up to
6.05x harder working
Monthly Cash Flow Waterfall
This breakdown shows exactly how your investment generates income each month. Starting with rental income, we account for mortgage payments, management fees, insurance, and maintenance costs to arrive at your net monthly profit. Understanding this flow helps you see the true cash generation potential of the property and how your money is working for you in real time.
Income / Expense
Amount (£)
Running total (£)
Rental Income
1,450
1,450
Mortgage Payment
-875
1
Management Fee (10%)
1
1
Insurance
-40
1
Maintenance Reserve
-50
1
Net Monthly Profit
-
£1

Get Investor Insights and Early Market Alerts

Join our investor briefings and stay ahead with expert insights, market updates, and priority notifications.
Subscribe & Stay Ahead
No spam, just timely insights for investors We respect your privacy and never sell your data

Equity Position:
Conservative Estimate

This section highlights the equity created from our property acquisitions, based on conservative assumptions. It shows the value gained on day one through below-market purchases, and provides a snapshot of the current position, taking into account recent market activity and mortgage balances. This approach helps investors understand the potential upside while maintaining a cautious, realistic perspective.

Timeline & Milestones:
Turning Strategy into Results

This section highlights the equity created from our property acquisitions, based on conservative assumptions. It shows the value gained on day one through below-market purchases, and provides a snapshot of the current position, taking into account recent market activity and mortgage balances. This approach helps investors understand the potential upside while maintaining a cautious, realistic perspective.
Week 1
Chat Streamline Icon: https://streamlinehq.com chat
Initial consultation with Unity
Week 2
Home Streamline Icon: https://streamlinehq.com
Property sourced & presented
Week 3
Checkmark Outline Streamline Icon: https://streamlinehq.com
Offer accepted
Week 5
Result Draft Streamline Icon: https://streamlinehq.com
Mortgage application submitted
Week 8
White Paper Streamline Icon: https://streamlinehq.com
Survey & legals completed
Week 12
Exchange & completion
Week 13
Wikis Streamline Icon: https://streamlinehq.com wikis
Property listed for rent
Week 14
First tenant moved in

The Property Behind the Numbers

The property itself, highlighting the features that underpin Unity’s investment strategy.
No items found.

From Strategy to Success: Investor Stories

Each investor who works with Unity Investments brings their own goals and ambitions, from building long term wealth to generating steady income.

Through careful planning, personalised strategies, and hands on support, our clients turn property opportunities into measurable success - achieving results that align with their financial objectives and giving them confidence in every step of their investment journey.

Background:

Vanessa is a Sales Director at a tech company, balancing a busy professional life with her home life. This is her second property investment, focusing on homes that combine strong rental potential with the opportunity to add value through refurbishment.

Investment Goal:

To secure well-located commuter properties that provide consistent rental income and long-term capital growth, without requiring excessive hands-on management.

Why This Strategy:

“I wanted a property where improvements could unlock extra rental value while still fitting around my career. Rochester offered the perfect combination of location and potential.”


Future Plans:

Vanessa plans to continue selectively investing in manageable commuter homes over the next 3–5 years, focusing on properties that are easy to maintain, attract reliable tenants, and build long-term wealth.

“Unity made investing in the Rochester property straightforward. The refurbishment and refinance have maximised value while keeping the rental income steady and predictable.”
Vanessa Clarke

Why This Investment Works

This Rochester property highlights how carefully negotiated below-market acquisitions combined with refurbishment and refinancing can deliver both instant equity and ongoing rental income:
Checkmark Filled Streamline Icon: https://streamlinehq.com

Strategy Success:

15% below asking price plus value added via refurbishment

Checkmark Filled Streamline Icon: https://streamlinehq.com

Income Generation:

£1,450 pcm rental with low maintenance

Checkmark Filled Streamline Icon: https://streamlinehq.com

Low Management:

Simple terraced home with off-street parking

Checkmark Filled Streamline Icon: https://streamlinehq.com

Risk Mitigation:

Built-in equity from below-market purchase and post-refurb refinance

Checkmark Filled Streamline Icon: https://streamlinehq.com

Rental ROCE:

5.8% first-year return on capital from rental income alone

Checkmark Filled Streamline Icon: https://streamlinehq.com

Total ROCE:

38.4% including rental income and realised equity after refinance

Checkmark Filled Streamline Icon: https://streamlinehq.com

Scalability:

Similar opportunities exist for structured, manageable growth in commuter towns

Checkmark Filled Streamline Icon: https://streamlinehq.com

Savings Comparison:

Cash savings at 4% significantly underperform versus structured property investment

Start Your Investment Journey with Unity Today

Understanding exactly how to buy investment property is the first step to building wealth through London property. Our proven process removes complexity while maintaining complete transparency.
Next Step:
Book Your Free Consultation to discuss how our process can work for your specific investment goals.
Schedule Your Investment Strategy Call