* 3 Bed HMO – Net Returns from 11.50% *

Description

An exciting Design and Build investment opportunity in Wellington Road, Preston, PR1, offering a fully refurbished 3-bedroom HMO with strong rental demand and attractive returns.
INVESTMENT OPPORTUNITY
3 Bed HMO
with Net Returns from 11.50% per annum
Financial Breakdown – 3 Bedroom HMO
Purchase Price: £120,000.00
Deposit: £30,000.00 – Finance (75% LTV)
Mortgage: £90,000.00
Conversion/Refurbishment Costs: £40,000.00* (includes VAT)
Set Up Costs / Design & Build Fees: £16,762.50 (includes VAT)
Legals: £3,000.00
Stamp Duty: £6,000.00
Mortgage Broker Fees: £1,000.00
Furniture Pack (Flooring and Blinds): £0.00
Total Project Cost: £186,763.00
Total Cash Outlay: £96,763.00
Rental Income:
3 Rooms at £140 PPPW
Monthly Rental Income: £1,820.00
Annual Rental Income: £21,840.00
Annual Costs:
Mortgage Interest (5.5% Interest Only): £4,950.00
Utilities: £3,000.00
TRUE NET INCOME: £13,890.00 per annum
GROSS RENTAL YIELD: 18.20% per annum
NET RETURN ON INVESTMENT: 11.50% per annum