Mini HMO* conversion – Burnley

Purchase & refurbishment costs

Purchase price£44,000
Refurbishment cost£16,000
Solicitor's fees£900
Bridging cost£4,000
Stamp duty£1,320
TOTAL£66,220

Cashflow

Property valuation (expected)£65,000
Mortgage loan @75% LTV£48,500
Mortgage payment (interest only/PCM)£124
Rent (PCM)£1,408
Lettings management - 12% (PCM)£281
Operating expenses£281
CASHFLOW (PCM) (no voids)£722

ROI & Yield

Money left in£17,720
Cashflow (PA) £8,664
Return on investment (PA)49%
Gross Yield26%

3 Renshaw Street

The property qualifies for Burnley Council’s 10-year loan at 0% interest with repayments of £158 per month.ROI is 49% but the actual cash left in the deal was covered by the Burnley 0% interest empty homes loan, which means less cashflow due to the loan repayments, but none of our own funds left in the deal.

STATS

 *House in multiple occupation

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