Objective:
Maximise cash flow through high-density rental accommodation, targeting professional sharers.
Acquisition & Development Costs:
- Purchase Price: £130,000
- Construction & Conversion: £140,000 to reconfigure into six en-suite bedrooms
- Design Package (Premium): £23,400
- Additional Fees: £6,500 SDLT, £4,600 legals, £7,200 sourcing
Leveraging HMO finance, we structured 70% LTV funding, freeing cash for development.
Project Execution:
- PJ Building & Developments handled structural works (kitchens, bathrooms, fire compliance) over 12 weeks.
- OHL Design’s premium fit-out package ensured en-suite specification and high-grade furnishings to attract professional tenants.
Operational Performance:
- Gross Rental Income: £43,160 PA
- Total Running Costs: £12,869 (management, utilities, compliance)
- Net Income: £30,291 PA
This produces a 9.81% net cash-on-cash return, among our highest-yielding opportunities.
Investor Benefits:
- Optimised Layout: Six private rooms with en-suite facilities command top market rents.
- Robust Demand: High occupancy rates driven by sharers seeking quality, managed accommodation.
Scale Advantage: Economies of scale in management and maintenance enhance net yields.