** FANTASTIC INVESTMENT RETURNS of 38% per annum - 5 BED HMO PROJECT! **

Description

Heneage Road Grimsby - Financial Breakdown – 5 Bedroom HMO Investment project

Purchase Price: £65,000
Deposit: £16,250 (25%)
Conversion/Build: £84,769 (includes VAT)
Set up costs/ Design & Build Fees: £16,763 (includes VAT)
Legals Estimate: £2,000 (plus £1,500 at refinance)
Professional Fees (valuation, broker): £1,500 (plus £1,000 at refinance)
Stamp Duty: £3,250
Project Hold Costs: £1,000
Furniture and flooring pack (includes blinds): £13,608 (includes VAT)
Bridging Arrangement Fees: £975
Bridging 6 Months Interest: £2,779
Total Project Cost: £194,143 (includes bridging costs)
Total Cash Outlay: £145,393 (includes 6 months interest for bridging loan)
Projected Rental Income: £606 x 3 and £541 x 2 = £2,900 per month (£34,800 per annum)
Management: £348 per month (10% plus VAT)

BASED ON A REFINANCE VALUATION OF £195,000 WE CAN RELEASE APPROXIMATELY £156,000 BY RE-MORTGAGING AFTER 6 MONTHS. AT THIS STAGE, YOU WILL HAVE AROUND £38,143 LEFT IN THE DEAL AND AFTER DEDUCTING MORTGAGE INTEREST AT 5.5%, MANAGEMENT, MAINTENANCE AND INSURANCE, YOUR NET INCOME WILL BE AROUND £14,604 PER ANNUM (£1,217 PER MONTH) GIVING YOU A NET RETURN ON CASH INVESTED OF 38.3%.