400 Fishponds Road
A 10 bed student HMO in Bristol, JV development
An opportunity arose to buy a very large 4 bed family home in Bristol.
We invested £258k including all acquistion costs and refurbishment and achieved planning permission to turn the property into a 10 bed HMO. We renovated the property within a year, and refinanced it. Renovation was over a 12 week period and property was let for the next academic year prior to completion of works.
After refinancing, investors received all £259k of the initial investment plus 8% annual interest. The property is now stabilised, rented out well, and the investor's money was fully returned and reinvested in other projects.
Key information
Purchase Price - £435k
Refurb Budget - £125k
Total capital investment - £258k including purchase and refurbishment
75% BTL mortgage
Yield at purchase 0% (this was a 4 bed family home)
Number of beds at purchase - 4
Number of beds post refurb - 10
Post refurb valuation - £850k
Equity released - £259k (investor fully paid back equity within 18 months with interest)
Gross Revenue post refurb, including bills - £75k
Post refurb Gross Yield - 8.8%
Cash on Cash not calculable as no capital remains in the property
If you would like to understand more about any of my experience please contact me.
