Starting Point:
This five bedroom town house in Great Ashby, Stevenage offered modern living in a sought after area on the outskirts of Stevenage, Hertfordshire. It had great access to the Stevenage town centre, local amenities and neighbouring villages – ideal for busy professionals who like to unwind at weekends
The Work Involved:
The challenge with this property was to introduce en suite bathrooms whilst optimising the number of bedrooms. Careful, creative planning enabled us to increase this property to six bedrooms. Five bedrooms became en suite whilst the sixth had exclusive use of a bathroom. The work was completed in just eight weeks.
| Return On Investment: | |
| Asking price: | £310,000 |
| Final purchase price: | £301,127 |
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Cash investment: |
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| Deposit: | £45,169 |
| Acquisition costs: | £14,406 |
| Refurbishment costs: | £25,950 |
| Total investment: | £85,525 |
| Total gross rentals: | £3,470 per month |
| Net operating income: | £2,397 per month |
| Cash Flow: | £1,132 per month |
| Annual return on cash investment: | 15.9% |
In Summary:
‘We were particularly pleased to achieve so many en suite bedrooms within the property,” says Martin Roche of HMO Property Sourcing Ltd. “This maximises the rental yield available and the demand from potential tenants. This house was fully occupied very quickly achieving good rental income, fast. 15.9% ROI is very attractive… and realistic most HMO properties.”
