Summary

HMO Conversion Opportunity, 3-Story | Potential £43k+ Gross Income | 36% ROCE

Strategically positioned on the fringe of Newport (Isle of Wight) Town Centre and within walking distance of the train station, this expansive three-story property is a high-velocity asset for proactive investors. Designed for immediate cash flow with a clear, permitted path to a 14% Gross Yield.

The Property

- Scale to 6‑bed HMO for significantly higher income.
- No Article 4 Direction – simple permitted development conversion.
- Mandatory licensing applies at 5+ tenants.
- Excellent condition, reducing initial cap‑ex.
- High‑demand, town‑edge location with strong tenant pool.
- Offers both robust cashflow and capital appreciation potential.
- Maximum Yield Potential: Projected £43,200 per annum once converted to a high-spec 6-bed Use Class C4 HMO.
- Three-Story Versatility: Spacious layout over three floors provides the perfect footprint for a high-end "co-living" professional product.

The Investment Case

This property is ready to run as a 4‑bed HMO with minimal work, giving you fast, reliable cashflow from day one from a steady pool of local professionals including NHS staff, council workers, and contractors.

With no Article 4 in the area, you don’t need planning to switch from C3 to C4, and because licensing only applies at 5+ tenants, you can start operating straight away while planning a move to a 6 bed licensed HMO to boost income.

The house is spacious, well‑kept and in excellent condition, offering strong rental performance now and great long‑term capital growth.

Financials

- Target purchase price £260,000
- Conversion costs: £29,768
- Investment required: £139,645
- GDV after conversion: £320,000 - £350,000 - immediate £60k equity uplift
- Monthly NET: £2,480
- ROCE: 27%
- Gross Yield: 14%

A low‑risk, high‑yield opportunity for both new and experienced HMO investors.

Optional project management available.

For further information or to invest please contact.

Sourced reference: 711349267525392