HMO in Sunderland

The proposed strategy is to acquire and operate the property as a house in multiple occupation, subject to licensing, planning and local authority requirements. The aim is to create strong rental demand and diversified monthly income across several rooms.

Sourced are excited to market this HMO opportunity based in Sunderland offering 35% ROCE and a 25% yield.

- 3 story house converted into 5 HMO and 2 self-contained flats
- 6 out of the 7 rooms are currently tenanted
- All rooms are in a basic condition, however the kitchens and bathrooms need a freshen up. Despite this the property is turnkey allowing immediate cash flow
- Properties across Sunderland have seen annual capital appreciation of 6%
- With a substantial £500 million regeneration project in the area aimed at creating thousands of new jobs, this all suggests no slow up of demand or capital growth

Financials:

- Purchase Price: £160,000
- Purchase Costs: £71,400
- Sourcing Fee: £4,000
- Monthly Rent: £3,250
- Annual Rent: £39,900
- Monthly Profit: £1,877.50
- Annual Profit: £22,530
- ROCE: 35%
- Gross Yield: 25%

All financials have been worked out assuming a 14% management fee, that can be arranged through our Sourced Living lettings agency, meaning this investments can be as hands on or as hands off as an investor wishes. If an investor wishes to self manage then the 14% can be removed to improve the ROCE.

Sourced offer a comprehensive property wealth building package in one place;

- Sourced Investment Agents - Sourcing investment opportunities for you,
- Sourced Enterprise - Limited company and SPV formations with tax efficient portfolio structuring and accounting solution.
- Sourced Finance - Access specialist property lending and mortgages, created for investors.
- Sourced Lettings - Seamlessly integrate property management using our nationwide lettings management service.

For further information, get in touch.

Financial Information
Current value: £160,000
Purchase price: £160,000
Purchase costs: £54,900
Refurb/works cost: £15,000
Sourcing fee: £4,000
GDV: £175,000
Monthly profit (£): £1,877.50
Annual profit: £22,530
Monthly rent: £3,250
Annual rent: £39,900
ROCE (%): 35%
Yield: 25%
Money left after refinance: £71,400
Investment required: £71,400