An exceptional opportunity to acquire an established and thoughtfully developed HMO in Central Swansea

We are pleased to present a BTL/HMO opportunity in central Swansea where there is a buoyant rental market created by students and young professionals.  The property has been professionally developed as a HMO, is license until 2028, and unusually offers six similar and generously sized bedrooms, in good rental condition throughout.

The property is being sold through the property market rather than as a business with and established income which would have resulted in a much higher price.  Subject to optional investment to install en suite bathrooms, the property has the opportunity for increased rental yield and resale value.

Key Features:

• Location: Swansea

• Condition: Evidence of recent development this is a well-presented HMO requiring no immediate renovation

Investment Highlights:

• Tenanted Property: Currently occupied with established income of £2570 and an annual gross income income of £30840 a year!

• Rent Increase Potential: The development of en suit rooms could increase the rental to £3300 a month.

• Market Value: The property is being marketed at £250k but would be valued higher if sold as an established business.  It offers an attractive proposition for investors seeking immediate renal return on the investment.

Area Overview:

• Central Swansea: SA1 is a lively central area of Swansea popular with businesses, student accommodation and as a result of the growing university has had a surprising amount of redevelopment over the years.  The property is located in old Victorian area of Swansea and has a wide range of property types from modern flats to 5 bedroom family town houses.

Financial Snapshot:

• Agreed Sale Price: £250,000

• Estimated Value: £250,000 / £300,00 as family home or with £350,000+ if sold as a rental business.

• Current Rent: £500 per month

• Potential Rent: £2570 per month achievable across 6 rooms (£430 a room)  This ready-to-yield investment promises a strong return, with an immediate income stream from a well-maintained property in a highly desirable rental location.   Act now to position yourself for a rewarding investment journey.

• Potential Development: As can be seen from the comparable sale properties below the area has a buoyant housing market with and a diverse range of property types. Although currently configured to maximise rental yield, this property has the option to be developed into flats to maximise resale value.

Estimated Returns - Current Condition

The following figures are done as if you would do nothing to the property in the short term. These are for cash flow in current condition. These figures are also the bricks and mortar valuation. Not a commercial valuation.

BTL Figures:

Rental Income: £2570

Mortgage: £781.25

Management at 15%: 385.50

Running costs 15%: £385.50

= cash flow: £1017.75

Estimated Returns - After Renovation

The property is already a full and running HMO however it is not nearly at its maximum potential. The rental income can be drastically increased and then once running can be done as a commercial valuation. Here are some estimated figures once the property is renovated with each room having its own bathroom or ensuite.

BTL Figures:

Rental Income: £3300 (£550 per room)

Mortgage: £1,125

Management at 15%: £495

Running costs 15%: £495

= cash flow: £1185