Purchased for £108,000 direct-to-vendor. This is a 3-storey property near the university and town centre. Previously used as a HMO (with licence) but had been converted into a cannabis farm, causing serious structural issues. With the property previously being ran as a fully signed off and licensed HMO it meant that no planning permission was required.
9 Bed HMO
Stockton
Property Breakdown
Property Information
Refurbishment
The property was in very bad condition because of what it was being used as previously. So the refurbishment included structural repairs (chimneys removed, floors rebuilt), full damp proofing, and full brand new roof. Back-to-brick refurbishment into a 9-bed all-ensuite HMO at a cost of £160,000 (all professional fees included).
Result
This property is now fully let at £450 per room, generating £48,600 gross per year. It has also been revalued at £320,000 and providing £24,600 net profit annually. This client used the full end to end service with HMO the preferred strategy adding to their already successful portfolio.
Financial Breakdown
£108000
Purchase Price
£160000
Refurbishment
£8000
Additional Fees
£108000
Total Cash Investment
£320000
GDV (End Value)
£48000
Rent PA
£24600
Cashflow PA
£40000
Money Left in Deal
44%
Return On Investment
Project Portfolio
Take a look at some of our other completed projects.
