9 Bedroom HMO in Swansea for a Pre-Auction Snap!

9 Bedroom HMO in Swansea for a Pre-Auction Snap!

£499.00

Overview

Substantial 9-bedroom licensed HMO in the heart of Swansea.
Magnificent seafront property with sea views.
Potential to add 8 en suites. TBC with architect.
In need of full renovation throughout.
There is a very strong demand for students, professionals, and social housing.
Walking distance to Swansea City Center.
Each room was previously let for £450pcm (£4050pcm total). There is considerable scope to increase the rental price of each room to £525-650 post-renovation, with en-suite facilities.
Property to be purchased pre-auction.
Awaiting legal pack – currently not available.

Financial Overview:

Purchase Price: £255,000

Gross Development Value (GDV): £479,250

Refurbishment Costs: £126,500

Total Cash Required: £401,250

Estimated Monthly Rent: £5,325

Net Monthly Profit: £2,123

Return on Investment (ROI): 60.94%

Secure this deal here with just £499 deposit. This holding fee is 100% refundable should you decide not to proceed. The source fee balance is only due on completion!

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Property Investment Description for Oystermouth Road, Swansea

Overview

This substantial 9-bedroom licensed House in Multiple Occupation (HMO) is located in the heart of Swansea, featuring magnificent sea views. With the potential to add 8 en-suites, this property presents a unique opportunity for a savvy investor. Although it requires full renovation, the strong demand from students, professionals, and social housing highlights its investment potential.

Auction Opportunity:

This property is going to auction, and we are attempting a pre-auction snap-up. This strategy has proven successful in recent transactions. Once the sale is agreed, a 10% deposit will be required, and the contract will be signed, subject to a 28-day completion timeline. We are currently awaiting the legal pack, which is due any day, granting us some time to prepare for financing.

Financing and Support:

This deal can be financed by bridging loans. It is essential to have a good broker to pre-arrange the auction terms with your lender. We have experienced success in as little as three weeks by assembling a strong power team of brokers, lenders, and solicitors.

Area Insight:

Situated within walking distance of Swansea City Center, this property benefits from excellent transport links, making it ideal for professionals commuting to nearby employment hubs. Families will appreciate the proximity to schools and amenities. The area's regeneration schemes further enhance its attractiveness, suggesting a promising future for property values.

Investment Highlights:

Each room previously earned £450 per month, with potential rental rates post-renovation expected to rise to between £525 and £650 per month, significantly increasing cash flow. A strong exit strategy is in place, targeting a commercial valuation with a 10% yield.

Conclusion:

Given the robust rental demand, potential for significant value appreciation, and favorable financial metrics, this property is a sound investment opportunity. The combination of location, renovation potential, and market demand positions it well for both immediate cash flow and long-term capital growth. Investors can confidently pursue this opportunity, knowing it aligns with both current market trends and future growth initiatives in Swansea.