Sourced Deal - Carmarthen Student House for Serious Cash Flow!

Cash Flow £762 from this student house in Carmarthen!

It feels like it was yesterday when I went to University in Carmarthen. Never did I imagine I would be back 13 years later with a keen eye on the property development side of things. 

Carmarthen is an amazing town. It actually has a claim to being the oldest town in Wales which is something pretty cool to know. However, it's the student life that interests me. Carmarthen has 3 Univesity Campuses and only a very small amount of dedicated student accommodation. Being a Trinity St Davids University, and also having the Art College, West Wales School of Arts, Carmarthen really does attract top students from all over the United Kingdom and Ireland. 

Students pay anywhere from £55 for a box room in town, to £120 with an en-suite closer to the university, per week! That is an impressive rental return for a 5 bed HMO! 

SPP hit the market hard and we found one. This property is just 5 minutes walk from both Trinity St David and West Wales School of Arts. It is already registered and signed off as a HMO and has been collecting steady student rent, fully rented, for the past 2 years. It is currently a 4 bedroom HMO (in Wales HMO licenses are required for all HMOs regardless of size). There is a build in garage which we advise adding an extra bedroom and downstairs bathroom making the property a 5 bed HMO with 2 full bathroom suites. 

SPP has secured the deal, of course, below market value to help a motivated seller move on their property and provide some money for other projects closer to home. Check out some figures below and click "learn more" for more pictures and information. 

Figures in Brief

Asking Price - £135,000
Agreed Purchase Price - £115,000

Retention Figures
Rental Income pcm - £1550
Cash Flow - £762
Rental Yield - 12.6%
ROI - 44%

Flip
Build Costs - £8,000
End Value - £150,000
Potential Flip Profit - £14,000