We wanted to share some example client funded HMO deals for new visitors to the site. Firstly, there are a number of reasons why an investor is likely to choose a client funded deal over buying a finished product:
Reduced risk and more control – no chance of a deal being withdrawn from sale
Lower costs – there’s no developer profit so your costs are lower and therefore your yield is higher
Capital uplift – the value of your completed property is likely to be higher than the cash invested. This gives you the option to refinance against the higher value and withdraw your funds (subject to the usual caveats on being able to obtain finance).
Example Client Funded HMO Deals
How does this look in real world examples?
Gordon Street, Leigh, Greater Manchester
Convert into 4 bed HMO
Purchase price: £51,000
Full refurbishment: £23,500
Total: £74,500
HMO rental income: £325 per month per room = £15,600 per year
Gross rental yield: 20.9%
Net rental yield: c 15.9%
(This is after bills including council tax, utilities, wifi, insurance)
Firs Lane, Leigh, Greater Manchester
Convert into 4 bed HMO
Purchase price: £54,000
Full refurbishment: £25,000
Total: £79,000
HMO rental income: £325 per month per room = £15,600 per year
Gross rental yield: 19.7%
Net rental yield: c 14.8%
(This is after bills including council tax, utilities, wifi, insurance)
These are just examples in one specific area. We deliver deals across the North West.
We have been involved in property investment in different forms for over ten years and rental yields at his level consistently available anywhere else in the country. That’s especially true when you also consider the comparatively low investment level required.
Although the deals above are only example client funded HMO deals, we have others available (we tend to source to order).
Please register your interest by following this link and we’ll get the information sent over to you. (opens in new tab).
If you want to dig a bit deeper into what we do you’ll find this page useful. (also opens in a new tab).
Of course, if you’d prefer to pick up the phone then please call 01942 366770.