Giant High Yielding HMO Project

Description

INVESTMENT OPPORTUNITY

Alexandra Road - Morecambe
6 bed, 6-bathroom HMO
Alexandra Road - Financial Breakdown – 6 Bedroom – 6 Bathrooms

Purchase Price: £120,000.00
Deposit: £35,130.00 (includes 6 months interest for bridging loan)
Conversion/Build: £92,568.38* approx. (subject to further onsite visits)
Set up costs/ Design & Build Fees - £15,500.00
Legals Estimate - £1,400.00
Stamp duty - £6,400
Survey - £650.00
Broker fee: £1,000.00
Furniture and flooring packs can be purchased at an additional cost - £13,200

Total Project Cost: £249,448.38 (includes 6 months interest for bridging loan)
Total Cash Outlay: £159,448.38 (includes 6 months interest for bridging loan)

Projected Rental Income: £115.00 PPPW net of bills (water, gas, electricity) x 6 = £35,870 per annum
Management: £5241.60 including VAT - (10% fully managed)
Net Income: £30,628.40

NET RETURN ON INVESTMENT AFTER REFINANCE: 44.95%
BASED ON A REFINANCE VALUATION OF £255,000.00 WE CAN RELEASE APPROXIMATELY £204,000.00 BY RE-MORTGAGING AFTER 6 MONTHS. AT THIS STAGE, YOU WILL HAVE AROUND £45,448.38 LEFT IN THE DEAL AND AFTER DEDUCTING THE NEW, INCREASED MORTGAGE INTEREST, YOUR NET INCOME WILL BE AROUND £20,428.4 PER ANNUM GIVING YOU A NET RETURN ON CASH INVESTED OF 44.95%.

CHOOSE MORECAMBE: GREAT VALUE FOR MONEY: EXCELLENT POTENTIAL GROWTH RATE: FANTASTIC RETURNS

• It has close commuting and business links with Lancaster and Lancaster.
• A fantastic opportunity for quality living in a coastal town with demand from relocating professionals from across the country and locals alike.
• The area has a large shortfall of shared accommodation for contractors.
• In September 2021 BAE Systems was awarded a £85m to support early design and concept work on the Royal Navy's next generation of submarines which will help secure 100’s of jobs in Cumbria.
• Barrow is the centre of the "national endeavour" to develop a new generation of nuclear deterrent submarines, the £40 billion Dreadnought programme.
• There are other important employers soon to arrive including The Eden Project.


THE FINISHED PRODUCT

• New inspire landlord thermostatic system can be fitted to control the usage of the properties central heating which will help with the significant rise in energy prices and keep the bills affordable for the landlord. Savings can be up to £1000 a year.
• Will be refurbished to the highest standard and contain all the everyday necessities within the furniture pack including a washing machine, vacuum cleaner and microwave.
• All rooms will be rented at £115 (ensuite) per person per week.
• Will be supplied, fully regulated and compliant with the local council following inspection on completion of the building work with all necessary approvals.
• Every property has interlinked smoke alarms in all rooms, emergency lighting systems, appropriate fire panels and heat sensors.

Ad ID: 1502313691