Today we picked up another set of keys for a 5 bed Professional HMO in Greater Manchester. We will be doing a small extension to enlarge the kitchen area. As you can see the property as it is looks horrid. The area is very good, centrally located, transport into Manchester city centre with shopping near by. We are assuming 600 a room per month or 36,000 a year. Expenses usually run 25% of the gross rents. This includes utilities, council tax, voids, management as well as some maintenance. So we are looking at about 28-29k a year net. Our expected time to furbish is about 8 weeks with a total all in cost of approx 190k. Cash on cash we should be at approx 15.15%. As the property is cash flowing we will put the property up for 12% of the gross rents which is 300k. If we sell for 13% of gross rents we are selling at approx 276k. It might take 6 months to a year to sell, yet all the while we are cash flowing and adding to our bottom line. We have several of these going on that the moment along with 2 conversion projects. One is a block of offices in which we will transform into flats and the other is a old library in which we will transform into flats and some them duplexes. Watch our progress and any questions please reach out to us.
http://BHinvestment.co.uk/
Email: info@Bhinvestment.co.uk
Instagram https://lnkd.in/dYqEFV9M
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