My Propery Sourcer

Ready made deal in property Hot Spot – producing £46800 in gross rent per annum.

HMO Wisbech Cambridgeshire Very healthy 21% ROI on cash in deal.
Currently fully let – the tenants have been in occupation for about 2 years and love living together.
Norwich Road, Wisbech, Cambridge shire.
Purchase Price £325,000 – Price to Secure £5000

HMO WIsbech

For a limited time only we have managed to secure a great 7 bedroom HMO Wisbech cambridgeshire with a 1 Bed Self Contained Flat.
The property is within close proximity to the local amenities and has been run as a successful HMO for 21 years.

We have also negotiated a £25,000 discount.
There is a great set of current tenants that have been in occupation for 2 years –No Voids! The property is in decent condition but would benefit from an on-going program of minor works, such as painting and carpet replacement, this would also increase the rental potential. There is potential to increase the rent further with a simple modification that would give 2 further lettable rooms and increase gross rents to £50k.New HMO license for 10 years was granted 2 years ago for up to 13 occupants. We have found an agent in the area that would be prepared to manage the property for 10% per month.The property layout is as follows.
Ground Floor Room 6 Double
Room 7 Large Double
Room 5 Single

Lower Ground

Shower Room
Communal Area
Kitchen/Breakfast RoomBasement

  1. Bed Flat

First Floor
Room 1 Large Double With  En-suite
Room 2 Double
Room 3 Single
Room 4 Single

Rental

The property is located in an area with consistent rental demand from tenants looking for good quality accommodation. Most of the tenants in the area are working in the local agricultural industry and prefer staying in HMO’s giving the area a fantastic rental market. The rents for rooms in this location range from £90 per week to as much as £150 per week dependant on size and quality. Rooms in this property rent for between £90/week for a small single to £135/week for a double.

HMO Cashflow Forecast
Rental Income As 7 Bedroom HMO:

  • 1 Bed Flat  = £375 pcm = £4500 per annum
  •  7 Lettable Rooms = £3500 Per month 
In total this HMO Wisbech cambridgeshire property generates £46800 Per Annum
Costs to consider:

Mortgage Cost = £ 812.50

 (Assuming 75% Mortgage Taken @ 4% although there are cheaper products available)

  • Utilities = £350 pcm
  • 10% Contingency = £351 pcm
  • 10 % Management = £351 pcm

Cashflow After Costs =£1720 per calendar month
= £20,790 Per Annum

Capital Required To Get Involved:

• Purchase Price = £325000

• Deposit @ 25% = £81,250

• Stamp Duty = £9,750

• Legals = £1,000

• Works To HMO =0

• Sourcing Fee = £5,000

Total Capital Required = £97000

The Return On Investment based on an Investment of £97,000 = 21%
My Property Sourcer Vision

  • Purchase the property for £325000.
  • Refinance against its commercial value recovering potentially all of your initial investment plus some additional
  • Cash out of the deal.
  • Enjoy significant monthly Cashflow

We are in contact with a local letting agent in the area who would be able to manage the property.
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