"5-Bed HMO Conversion Opportunity in Redditch"

Sourced are excited to present this opportunity for a 5-bedroom HMO conversion in Redditch, a highly sought-after area for rental demand.
This property offers strong financial returns and significant potential for optimisation to maximise yield.

Property Highlights:
- 5 bedrooms, 1 bathroom, 2 WCs.
- Located within walking distance of the hospital, ensuring consistent tenant demand.
- Redditch train station links easy access into Birmingham.
- No Article 4 restrictions – council confirmed HMO-friendly status and provided all necessary requirements for licensing.
- High demand for rooms in the area on platforms like SpareRoom.

Financials
▪ Purchase price: £200,000
▪ GDV: £230,000
▪ Refurb costs: £10,000
▪ Annual profit: £11,870
▪ Rental yield: 13%
▪ ROCE: 19%

▪ Purchase costs: £20,950
▪ Annual rent: £28,800
▪ Net yield: 5% (inclusive of council tax, utilities, and broadband).

Possibility for Higher Yield-
By splitting the lounge into an additional bedroom and adding another bathroom, the property may be optimised for a 6-bed HMO which can increase the net yield to 9%.

Why Invest?

Walking distance to key amenities like the hospital, ensuring steady demand from healthcare professionals and workers. HMO-friendly area with no Article 4 restrictions for the licensing process. Competitive yields even with the existing setup, with potential for further optimisation.

This property is perfect for investors seeking a high-demand HMO in a location with excellent tenant appeal. With a modest refurbishment budget and room for improvement, this deal offers both strong returns and long-term potential.

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.