A typical 3-bedroom terraced house with one bathroom has been extended and renovated to a 5-bedroom with 2-bathroom HMO.
Location: Tilgate, Crawley, West Sussex
Purchase Price: £300,000
Purchase deposit: £75,000 (25% of purchase price)
Stamp duty: £14,000
Solicitors & Survey: £2,000
Extension & Refurbishment Cost: £75,000
Total Investment: £166,000
Rental Income Per Annum: £33,000
Gross return on income: 19.8%
Net return on income: 12.2% (This figure is after all expenses paid including mortgage interest payment)
Value of property after refurbishment as an HMO: £385,000
