Wednesday, 18 March 2015

"Needs Work" Bargain close to Sunderland Hospital - Potential for Family Let or Professional House Share (11.5% Gross Yield)

Last week I highlighted a property on Chatsworth Street (SR4) near to the Sunderland Royal Hospital that could work as a family let or potentially a more lucrative Professional House Share. Now a similar sized property has come onto the market that needs a lot more work but because of the bargain price could make an even better investment

Once again it's a 3 bedroom, 2 reception room terraced property. It's on the market for OIRO £85,000 and realistically would need a new bathroom, kitchen, full redecoration and new flooring might also want to look at the roof whilst you were at it...

Once the work was complete you could rent it unfurnished to a family and expect to get £595pcm (we manage a number of similar properties in the surrounding streets so know this is very realistic)

Alternatively, if furnished to a high standard it could be rented to 3 professionals on a 'bills included' individual room basis (using 1 of the downstairs reception rooms as a double bedroom). As with the previous property I've deliberately excluded the bills from my calculations but working on £400pcm for each of the 3 double bedrooms (I'd leave the single/box room as a spare/storage room as it would always be hard to rent to the 'right sort' of tenant) that brings in £1,200pcm when the property is fully occupied

I make the point about the return when fully occupied, as this sort of let is by it's very nature more liable to having a regular churn of tenants and therefore you should factor in having one or more rooms empty a couple of months of the year

The one advantage of last week's property was it already had a downstairs shower in addition to the family bathroom - this property doesn't have this so if you were considering a Professional House Share you would be wise to budget for this important improvement 

The calculations are again very 'back of fag packet' but based on the above £1,200pcm and a total investment of £125,000 (£85,000 plus £40k for renovation, furniture etc) it would return 11.5% Gross Yield

Click here for details

Call me on 0191 567 877 or email for more information on this property or to discuss Professional House Share market in Sunderland

1 comment:

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