Before and after
Before
After
Before
After
What exactly was changed:
Strategic Floorplan Optimization:
The apartment was redesigned to create five individually rentable rooms, making better use of the available space and increasing its rental income potential.
Complete Modernization:
The renovation was completed in six weeks, ahead of the planned two-month schedule, transforming the outdated interior into a modern rental apartment.
Furnished Co-Living Concept:
All five rooms were furnished and prepared for individual tenants, with a consistent design and shared kitchen and bathroom facilities.
Fully Managed Rental Model:
The property was set up for room-by-room letting with professional rental management, allowing Mr. Mo to own the Munich apartment while living in Berlin.
The Initial Problem
He wanted to secure his retirement. BUT Financing almost stopped the investment!
After around twelve years in Germany, Mr. Mo wanted to turn his income into something that would support him in retirement.
But finding the right apartment was only part of the challenge. As he approached retirement, securing bank approval became more difficult. The financing process took around five months.
There was also the language barrier. Mr. Mo spoke German, but handling bank discussions, legal terminology and the notary appointment was another matter.
The apartment itself needed a complete transformation. Its previous monthly cold rent of €1,760 represented a gross rental yield of just 2.89% against the €730,000 purchase price.
He needed a clear plan for the financing, the renovation and the rental income, with someone coordinating the entire process.
The LDP Solution
The strategy behind Mr. Mo’s Munich investment
We identified a €730,000 apartment in Munich’s Neuperlach district with the potential to generate significantly more rental income after renovation.
The purchase included €58,000 in renovation costs. The layout was redesigned, the apartment was modernized, and five furnished rooms were prepared for individual letting.
The resulting monthly cold rent is €3,625, compared with €1,760 under the previous rental setup. That represents an increase of approximately 106% and a gross rental yield of 5.96%.
Alongside the property transformation, we coordinated the financing process and supported Mr. Mo through the purchase and notary appointment.
Six weeks after renovation work began, he returned to Munich to see the finished apartment.
The Numbers, Black on White
The key numbers from Mr. Mo’s case at a glance
€730.000
purchase price, including renovation
€58.000
renovation costs included in the purchase
~81 sqm
living space
5
individually rentable furnished rooms
€3.625
monthly cold rent
€43.500
annual cold rent
€445/month
indicative first-year cash flow before tax, with management fees waived
€23,100
first year tax Cashback
€58.000
total tax benefit
Financing and Cash Flow
How the financing was structured around Mr. Mo’s situation
Because Mr. Mo was approaching retirement, this purchase required a larger upfront contribution to secure financing.
With combined monthly loan payments of €3,005, against monthly cold rent of €3,625, that leaves €620 before property costs and rental management.
For the first year, LDP waived the €200 monthly management fee. On the same assumptions, this increases the monthly surplus to approximately €445, saving Mr. Mo €2,400 in management fees over twelve months.
Tax Advantage
The real lever, the first year tax benefit
The case includes €58,000 in renovation costs.
After including the other income and deductions, Mr.Mo gets back approximately €23,100 in first-year tax Cashback from the Finanzamt.
Proof and Documentation
Black and white proof, not empty claims
LDP Support After the Purchase
The purchase is not the finish line, it is where the real work starts
The real value is created after the deal is done. We take over the full operational side from ongoing rental management and administration to handling tenant turnover, re-letting, and coordinating maintenance.
Instead of handing over the keys and stepping away, we stay involved as a long-term partner. This ensures the property continues to perform, grow, and deliver results well beyond the initial purchase.
Exit and Long Term Perspective
Not just tax optimization, but real long term wealth building
Mr. Mo’s main goal was to build an asset that could support him in retirement.
The strategy combines rental income with ongoing loan repayment and the potential for long-term property appreciation.
The apartment reaches a projected value of approximately €905,000 by 2036. Loan repayments will also increase Mr.Mo’s equity by reducing the outstanding debt.
Whether Mr. Mo eventually keeps the apartment for rental income or sells it, the investment will give him the freedom of many financial options for retirement.
