Background
Our four bedroom high specification multilet is ideally located near to Southampton Central train station, a local high street and Southampton City Centre. It was previously an industrial building, and then a tired unloved house, which we purchased in 2016. We’ve refurbished it up to our high standards and added an ensuite for our valued professional customers with fresh modern interiors, stylish furniture and everything our tenants could want; they just move in.
Scope to go to 5 bed and exit plan
Factfile
- Purchase — £190,000
- Refurb and costs — £22,000
- Total cash investment — £68,000
- Gross monthly income — £2,200
- Net monthly income — £1,300
- Annual net profit — £15,600
- Net ROI – 23%
You’ll hear this term a lot along with HMO – an HMO is a property rented to separate unrelated people. The most common form is renting bedrooms in a house where the bathroom, kitchen and living areas are shared. So in our property above we have 4 people on separate rental contracts paying separate rents. The benefit to us is a greater investment return, although there are many additional considerations when renting a property on multiple contracts such as health & safety, council regulations and planning permission.
