5-Bed, 4-Bath HMO Conversion in Bangor

Sourced Partner Laura Simpson is looking for private finance on a high-quality 5-bedroom HMO conversion in Bangor, North Wales. This project involves converting an existing residential property into a professional-standard HMO aimed at the student or young professional market.

The property is currently a 4-bedroom, 1-bathroom house. One reception room will be converted into a bedroom, increasing it to 5 bedrooms, with three rooms gaining ensuites. It will be refurbished to a high standard, let out, and refinanced once the end valuation is achieved. The expected loan term is 12 months.

No further HMO properties can be converted in the area as Permitted Development rights have been withdrawn, however planning is not required as the property has previous existing usage as a HMO property.

Laura has previous experience in similar projects in the area and has recently converted a nearby property of similar size. She will be using the experienced build team that she has used on previous projects.

Investment Financials:
▪ Required Investment: £30,000
▪ Return: 25% p.a. (paid at end of term)
▪ Term: 12 months
▪ Security: Second Charge and PG

Exit & Repayment Plan:
Refinance onto a commercial mortgage, with capital and interest returned upon refinance.

HMO Financials (Projections):
▪ Purchase price: £140,000
▪ Purchase costs: £8,975
▪ Refurbishment costs: £80,200
▪ GDV: £290,000
▪ Monthly rent: £2,840
▪ Annual rent: £34,080
▪ Monthly profit: £936
▪ Annual profit: £11,242
▪ ROCE: 33%
▪ Yield: 12%

This is a hands-off investment opportunity, with all aspects of sourcing, project management, and lettings handled by myself and my experienced team.

For further information, please get in touch.

Sourced reference: 977487951911917