So today for you I have this potential little gem? Now you will have to spend some money so expect to spend considerably more than the original guide price of £375,000 which is being asked from Cheffins.
Now as it stands this property with a quick glam up would rent for in the region of £1,500pcm offering you a yield of 4.8% which that alone is about right for Cambridge right now. Of course the 4.8% is based upon you paying the full guide price and spending very little on refurbishing the property?
Lets just say you pay the full asking price of £375,00 which is reasonable and will certainly make you a profit over the next 5 years so your job is potentially done right? Wrong!! why just settle for a little profit?
So picture this.......
Buy the property for £375,000 apply for planning permission onto the side of the property for two ensuite ground floor bedrooms and two first floor rooms and then finally partition the living/dining room as its huge and will give you another bedroom ultimately now giving you a 8 bedroom HMO. So if you plan to spend 100k on the build and do the property up to a high furnished standard you would be left with six rooms renting for £550 pcm and two rooms renting for £625 pcm factoring in your HMO licence and the works entailed in becoming HMO compliant into your 100k you will find yourself spending £475,000 to obtain a high speck HMO in central Cambridge that would now earn you a monthly rent of £4,550 giving you an annual rental fee of £54,600 and a new yield of 11.5%.
That's a great yield and that's not mention that your property value has now increased vastly far superseding your extra 100K.
For further information on this property please click the link below:
http://www.rightmove.co.uk/property-for-sale/property-51615457.html
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