Purchased pre-auction for £60,000, a 2-bed house in a thriving area with strong transport links. Darlington is an area excellent for HMO’s for the professional workers market because of the funding and jobs being created in the area by the government, such as the Amazon warehouse and multimillion pound refurbishment of the train museum.
5 Bed HMO
Darlington
Property Breakdown
Property Information
Refurbishment
Converted to a 5-bed all-ensuite HMO. The £87,500 refurbishment covered everything including licensing, build control, and acoustic testing. The property was configured to a 5 bedroom HMO by utilising all the floor space and receptions rooms. The property underwent a full back to brick refurb and had new roof works carried out too.
Result
The previously 2 bedroom terraced house is now fully let as a 5 bed HMO, generating £30,000 per year, with net profit over £14,000 annually. The client on this project used the full end to end service to grow their portfolio.
Financial Breakdown
£60000
Purchase Price
£87500
Refurbishment
£11000
Additional Fees
£60000
Total Cash Investment
£200,000
GDV (End Value)
£30,000
Rent PA
£14,100
Cashflow PA
£20000
Money Left in Deal
80%
Return On Investment
Project Portfolio
Take a look at some of our other completed projects.
