Strategy. HMO

Location. Little Hulton

Project Management for client 

 

Financial Overview

Purchase Price

£82,000

Stamp Duty

£2,460

Solicitor Fees

£750

Sourcing Fee

£2,000

Refurb

£35,000

TOTAL COSTS

£122,210

Market Value After Refurb

£120,000

Refinance @75%LTV

£90,000

Money Left In

£32,210

Cashflow 

Rent 

£1,900

Mortgage 75%LTV @ 4%

£300

Insurance

£20

Management Fees

£231.80

Bills

£400

Net Cashflow 

£948.20

ROI

35.3%

This project was undertaken for one of our clients. We were responsible for sourcing the property and negotiating the deal with the vendor and then we proceeded to project manage the development using our own development team.

 

The purpose of this investment was to create a 4 bed HMO that could be let to 3 individuals and one couple sharing. The key to maximising the return to our client was in the design and development. By redesigning the layout of the existing property, we were able to reduce costs by eliminating any need for major building works. This saved time and most importantly, saved the client money. 

The location of the property is great for an HMO as it has great transport links, is close to local shops and is on the doorstep of a number of large employment centres, coupled with the very high level of finish that we provided the client is able to receive high tenant demand and minimal voids.