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Manchester Road HMO

Project Details

Investment Opportunity: Small House In Multiple Occupation (HMO) Conversion

Location: Manchester Road, Huddersfield, West Yorkshire

Bedrooms: 4

Background

Our investor was a new Modus client and was interested in HMO and Buy to Let projects. For their first property investment, our client was particularly keen for us to source a property that could be turned around quickly.

The excellent relationships which we had built with local estate agents and sourcing partners paid dividends as we were alerted to an investment property in Huddersfield. Located just twenty minutes’ walk from both the University and railway station, the property was perfect for students or commuters.

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The property was ideal as a Buy, Refurb, Rent (BRR) strategy and had become available due to the previous sale falling through. The vendor was keen to avoid further delays with disposing of the property and so we completed the purchase quickly, helped by the fact that the searches had already been conducted. With the use of our teams negotiating skills we also secured the property at a lower than market value price.

There were no structural issues with the property, but it did require a full internal refurbishment to convert it to an HMO. This included a new kitchen and bathroom, redecoration throughout and new carpets and floor coverings.

Our client was impressed with the speed of refurbishment (only 3 months) and the quality of the workmanship. All four rooms are now let generating an annual rental income of £15,180 and annual cash-flow after costs of £9,264.

Financial Overview

Purchase Price

£55,000

Purchase Costs

£6,700

Cost of Refurbishment

£13,000

Total capital outlay

£74,700

 

 

Monthly rental income

£1,265

Monthly costs

£493

Monthly cash flow

£772

 

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Team MODUS

Get in touch

Modus Property Limited

Modus House, 100a Wakefield Road, Lepton, Huddersfield, West Yorkshire, United Kingdom, HD8 0DL

Phone: +44 (0)1484 971065

Email: hello@modus-property.com

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