Eyes On… Potential 5 Bed HMO In Mansfield

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Houses in Multiple Occupation are becoming more and more popular especially after the announcements regarding the mortgage interest tax relief. Landlords are looking to maximise their returns and HMOs are one strategy that ticks the boxes.

Over the coming weeks I will be highlighting a few entry level HMOs that could potentially provide you with higher returns than the standard BTL investment.

This week we have a 3 storey property on the Berry Hill estate in Mansfield. 24 Cairngorm Drive currently has 4 bedrooms, 2 bathrooms, kitchen, lounge and WC. There is also an integral garage which you would convert into the 5th bedroom.

At the moment it’s quite bland but you would add some personality when furnishing the place. To renovate and furnish a property this size you’d be looking at around £24,000 with the total cash required circa £68,000 (based on obtaining a 70% LTV mortgage on the purchase).

5 bedrooms in this area would generate around £1,900 per month when fully let. After all costs, this would give you a net yield of 15.16% on your capital.

Properties such as this do require a higher level of investment, and indeed management, but as you can see the returns are also far superior.

Looking for better returns on your investments? As well as managing property we source investments across Nottinghamshire. We’ve got more where these come from so get in touch with your requirements.

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