We acquired a degraded four-bedroom apartment (87 m²) in a prime location with exceptional views.
The purchase price was 167.000 EUR, financed through a mortgage covering 75% of the property value.
Additional closing costs and taxes totaled 9.700 EUR.
Instead of selling, we chose to rent the upgraded property by individual rooms, currently generating 24,360 EUR in annual income.
This represents an annual gross yield of 11.7% and a 33% annual cash-on-cash return.
During the first year, the investor received 60% of the gross rental income, increasing to 70% in the second year and 85% from the third year onward, with the remaining share representing our management fee.
The long-term plan is to sell the property in a few years and share the capital gains.
