Wednesday, 19 November 2014

Warrington Property From 5% to 12% Yield



Good Morning property hunters. As usual i'm doing my RightMove travels. Ok so i'll be showing you how to make the most of this property in the link im sharing today so from 5% yield i'll show you how to get 12.3% yield

So this house is actually located very close to the University in Warrington, it can very easily be converted to a 4 bedroom HMO, As the house stands it needs no work doing to it and can be let for around £450 pcm, its on the market for £108k so doing the sums this will give you a yield of 5% which isn't the best return.

To achieve above 12% yield on this property you will need to convert it into a 4 bedroom HMO, you will not need a license in warrington to do this. Earlier this year we completed a project on a similar street where we converted the house from  5 bedrooms to a 7 bedrooms HMO (license needed), so using estimated figures from that particular project i would suggest the refurb cost would be no more than  £5k, this would include fully furnishing the property throughout down to the salt and pepper shakers.

So total cost would be £113k including the refurb, now the four rooms will rent for £90 pw. That will include all bills, council tax and wifi. account for £100 per room a month for this so total rent a month would be £1560 minus £400 (bills,council tax, wifi), you will be left with £1160 pcm rather than £450 pcm this will achieve 12.3% yield.

Hopefully that made sense!  if you would like to chat about this particular deal or other deals you are looking at and want my honest opinion good or bad then please contact me Tesh Patel by email at tpatel@hamlethomesproperty.co.uk.

http://www.rightmove.co.uk/property-for-sale/property-45711382.html