3 Bed terrace/4 person mini-HMO – Burnley

Purchase & refurbishment costs

Purchase price£45,000
Refurbishment cost£19,000
Solicitor's fees & broker£900
Stamp Duty£1,350


Property valuation£65,000
Mortgage loan @80% LTV£48,750
Mortgage payment (interest only/PCM)£109
Rent (PCM)£1,430
Lettings management - 15% (PCM)£215
Operating expenses£286

ROI & Yield

Money left in£17,500
Cashflow (PA) £8,856
Return on investment (PA)50.6%
Gross Yield26%

Coal Clough Lane – Burnley

This property is a secure investment as needed only minimal changes to the internal layout’. It could function as both a buy-to-let and a small HMO. The additional cost of renovation to HMO standard is £3,000 but should the HMO market become saturated, it could also be easily let as a 3 bedroomed property. The property would only need to exist as an HMO for 5 months in order to repay the additional cost of refurbishment.

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