R2R in Birmingham, High Cashflow
About this property
The proposed strategy is to lease the property from its owner and operate it under the agreed subletting model. The opportunity offers a lower ownership requirement, while performance depends on occupancy, operating costs and landlord consent.
This deal can generate high cashflow.
The property:
A show-stopping rear extension with a lantern skylight, LED-lit ceiling, exposed brick feature wall and full-width bi-fold doors that open onto the patio.
A designer kitchen with a large island and four bar stools, statement globe pendants, double ovens and an American fridge-freezer, perfect for groups cooking together.
Two stylish bathrooms plus a downstairs WC, including a freestanding slipper bath, twin-basin vanities, walk-in showers and an en-suite to the master.
Over 1,900 sq ft of living space with a bay-fronted sitting room, private patio dining, a landscaped garden and a block-paved driveway with a garage.
Why invest here:
The area of Harborne was named in The Sunday Times Best Places to Live 2025, one of Birmingham’s most desirable postcodes, where premium homes hold their value and their guest appeal.
Birmingham short-lets average a £112 nightly rate at 55% occupancy across more than 2,400 listings. Most of these are small flats, so a luxury 5-bed sits in a far higher price bracket.
Large group houses are scarce in B17, giving this home little direct competition for families, wedding parties and work crews needing space for up to 10.
The Queen Elizabeth Hospital, one of the UK’s largest single-site hospitals with 1,215 beds and Europe’s largest solid organ transplant programme, creates steady year-round demand from NHS staff, contractors and visiting families.
Why guests book this location:
Birmingham city centre is about three miles away, and nearby University station is just seven minutes by train to New Street.
The West Midlands welcomed a record 101.5 million visitors in 2024, with its visitor economy now worth £14 billion.
Harborne High Street is on the doorstep, packed with independent shops, award-winning restaurants like Harborne Kitchen, traditional pubs and a monthly farmers’ market.
Free driveway parking, a private garden and space to sleep 10 make it a natural pick for families, groups and contractors who would otherwise need several hotel rooms.
The Investment Required total includes the first month’s rent deposit and an estimate to fully furnish the property.
Cleaning has been calculated in the figures below. If you would like property management, just add 12%.
Financial Information
Rental price (to pay): £2,999
Refurb/works cost: £4,500
Sourcing fee: £3,000
Monthly profit (£): £1,563
Annual profit: £18,756
Monthly rent: £2,999
Annual rent: £35,988
ROCE (%): 90%
Investment required: £13,498
Investment calculators
Need finance? Sourced Financial Services specialise in HMO mortgages and can secure same-day decisions in principle.
Speak to a brokerAssumes English SDLT rates and 3% additional property surcharge. Welsh LTT and Scottish LBTT differ. Always confirm with your solicitor.
Ltd company (SPV) purchases pay the same additional-property SDLT rates, but mortgage interest is fully deductible against rental profits.