“Exciting HMO Conversion Opportunity in Redditch”

Sourced is proud to present this excellent opportunity for a 5-bedroom HMO conversion in Redditch. This property offers significant potential for value uplift through a full refurbishment, along with strong rental demand in a good location.

Property Highlights:
- 5 Bedrooms, 2 Ensuites, 1 Bathroom, 1 WC
- Decent-sized kitchen suitable for HMO setup.
- Full refurbishment required, offering scope for added value.
- Close to the hospital.
- Excellent transport links, with train access to Birmingham.
- No Article 4 restrictions – council confirmed HMO-friendly status with all relevant licensing requirements obtained.

Why Invest?
- Proximity to the hospital ensures a steady tenant demand of healthcare professionals and local workers.
- Strong demand for rooms in the area, as confirmed by SpareRoom listings.
- Full refurbishment allows customisation for maximum rental returns.
- No Article 4 restrictions, simplifying the conversion to HMO and licensing process.

This property offers the ideal mix of value uplift through refurbishment and high rental yields post-conversion. Whether flipping for a profit or holding as a rental asset, this deal has strong potential.

The financials:
▪ Purchase price: £165,000
▪ GDV: £250,000
▪ Refurb costs: £44,000
▪ Purchase costs: £15,900
▪ Profit once sold: £17,600
▪ ROCE: 16%

Rental potential after refinancing:
▪ Annual rent: £30,000
▪ Annual net profit: £11,587
▪ Rental yield: 12%
▪ Net yield: 5% (factoring Council Tax, utilities, and broadband).
▪ ROCE: 26%
▪ Money left in deal: £44,825

▪ Sourcing fee: £4,000 + VAT

Sourced endeavour to make our particulars accurate and reliable, however, they do not constitute or form part of an offer or any contract and are not to be relied as statements of representation or fact. The selling agent may or may not be the sole agent and will provide confirmation upon request. Any services, systems and appliances listed in this specification have not been tested by us and no guarantee as to their operating ability or efficiency given. All measurements have been taken as a guide and are not precise, please be aware some of the details may be waiting vendor approval. If you require confirmation or further information, please contact the selling agent. Fixtures and fittings are to be confirmed with the seller and not relied upon when listed. Sourced are not responsible for any loss of monies due to the purchase or purchase process with any property listed.