I have previously spoken about houses being possible HMO properties, mainly terrace properties with the front door being down the alleyway so that you have 2 separate ‘reception’ rooms downstairs. Well, one of our landlords has the exact set up with one of his properties which is an HMO in Nuneaton, there are 3 self-contained rooms all with kitchen areas within the room, 2 bathrooms – a male and female, and one room on the ground floor which when the house was in its original state would have been a reception room leading into the kitchen, and a downstairs bathroom, so this was kept as a ‘1 bedroom flat’. That said, before we further delve into this article, you can take a read on HMO properties here to get a better idea of what we are discussing.
This house that has come on the market with Reeds Rains for 135,000 on Norman Avenue in Nuneaton, would be an ideal house to do the exact same with. It is detached house which makes it even better for a HMO as there can be no problems from tenants either side of the property (with joining walls).
So based on similar figures to the HMO’s we manage, if this were converted like for like to the property I mentioned above that our landlord has, you could be looking at an annual income of 17,680 which when you work out the yield gives you a figure of 13.09%!!
There would be a fair bit of work involved to get the property ready and obviously the cost involved too, but as an investment …and to see an amazing return, I really do think this is a great opportunity. It is located very central to Nuneaton town centre and could be marketed at working professionals only to ensure you get a certain type of tenant.
If you would like to speak to us more about the HMO market in Nuneaton, or you are looking to invest in a similar idea, please fell free to pop in and see us on Bond Street, we’d be more than happy to speak to you.