The deal consists a truly stunning 3BED HMO with 3 x en-suite rooms each with their own plasma TV on the wall and Hive Smart Heating System controlled wirelessly via an app and also a commercial unit on the ground floor, all of which are tenanted – and the FEEEHOLD!!
The property has been completely refurbished within the last 6 months and has therefore had the following works:
NEW carpets throughout
NEW paint throughout
NEW central heating throughout
NEW combi boiler
NEW plaster throughout
NEW Hive Heating smart heating solution (control heating from anywhere in world with internet connection)
NEW electrical wiring throughout
The above works means that you will have MANY years of trouble free investing!
Below the HMO is a coffee shop which is included in the sale so you’re getting a 3BED HMO and a coffee shop, plus the FREEHOLD for a combined price of £205,000.
The development is located less than 500m away from the University of Sunderland giving a constant supply of tenants both professional and student to suit you.
The HMO which is fully let to working professionals and obviously the coffee shop below is tenanted too on a 2 year lease from September 2017.
The rents are:
HMO bedroom 1 – £500 per month
HMO bedroom 2 – £500 per month
HMO bedroom 3 – £600 per month
Coffee Shop renta l – £730 per month
TOTAL RENTAL INCOME – £2,330 per calendar month
Which in total generates an annual gross rental income of £27,960 or £2,350 per calendar month.
Bills – £4,320 per annum (council tax and all utilities etc)
Management @ 10% (no VAT) – £2,796 per annum (if managing yourself you can add this back onto the rent)
TOTAL deductions – £7,116 per annum
Rental income of £27,960 minus deductions = £20,844 NET rental income per annum
You would now just need to deduct your mortgage and the calculations are below in the spreadsheet at the bottom of this email.
You will also own the FREEHOLD outright and so you will have no ground rent or service charges to pay – EVER!!
You have the option of splitting the title if you wish once you own it to sell off the commercial unit and / or the HMO or sit back and simply collect the rental income!
The property has been completely refurbished inside out with new kitchen and bathroom as well as complete redecoration and carpets throughout. Have a look at the attached photos as they really speak for themselves. This is a very professional and stunning HMO property.
This deal delivers a 10% NET rental yield if buying cash.