Opportunity to purchase 2 HMO properties in Derby generating £63,060 rent pa & gross yield of 10.5%
£600,000
2-unit HMO portfolio
VES-DE22-001
INITIAL INVESTMENT
£190,500
Based on
deposit: £150,000
stamp duty: £38,000
mortgage fees: £1,500
conveyancing fees: £1,000
GROSS RENT
£63,060
GROSS YIELD
10.5%
The property
TENANCY
Tenanted
TENURE
Freehold
12 bedrooms
12 bathrooms
TBC
Fully Furnished
Portfolio information
- This mini-portfolio consists of 2 x 6-bed neighbouring semi-detached houses
- The properties are fully licenced HMOs
- Both properties are identical on the inside and comprise:
- 6 x bedrooms
- All come with their own ensuite shower room
- Communal kitchen and dining area
- Both properties come with a large garden to the rear, offering future development potential
- There is off-street parking at the front of both properties
- Inspired Home Automation thermostats were recently installed in each property and the heating system electrics were fully reconfigured for optimal performance
- EPC ratings: D & E; ratings expected to be higher following the works but new assessments not yet undertaken
- Council tax band A & B
Rental information
- Both properties are fully tenanted and achieve:
- Monthly room rental income: £5,255
- Annual rental income: £63,060
- The vendor believes there is potential to increase all rents periodically to £475 - £500 pcm
Running costs
- Any new landlord is likely to pay less for gas and electricity as the existing contracts were entered into at the height of the energy crisis
- The vendor provided us with the following running costs for both properties:
- Gas & electric: £600 pcm
- Council tax: £200 pcm
- Water: £90 pcm
- Broadband: £100 pcm
- Cleaner: £80 pcm
- Total monthly costs: £1,070
- Total annual costs: £12,840
Available upon request
- Rental breakdown
- EPCs for both properties
Location information
- The properties are located in the California area of Derby
- Derby centre is around 1.6 miles away
- There is a bus stop a short walk away with regular services into town
- The Kingsway retail park is 0.5 miles from the property
- Easy access to the local road network
Note
Please note that Vesta has not visited this property and the vendor has provided all material.
Floorplans
Documents available on request, please contact for viewings or further questions.
The information relating to this property is supplied by the vendor and was the latest available information at the time of listing. Certain information may expire or become inaccurate over time.
Vesta makes no warranty as to the accuracy or completeness of the property listing or any associated information. All information should be reviewed by the purchaser and their solicitor.
About Derby, East Midlands
Derby is a city in the county of Derbyshire in the East Midlands of England. It is located on the banks of the River Derwent in the south of Derbyshire, around 15 miles west of Nottingham and 37 miles north east of Birmingham.
This area is serviced by Derby Midland railway station which is managed by East Midlands Trains. East Midland Trains operates a 2 train per hour (tph) over the Midland Main Line southbound to London St Pancras via Leicester and northbound to Sheffield. Other local routes are operated by East Midland Trains, with frequent services on the Nottingham – Matlock Derwent Valley Line and the Derby – Crewe via Stoke-on-Trent lines. CrossCountry run inter-regional services to Newcastle and Edinburgh Waverley northbound and Plymouth via Bristol Temple Meads and Reading southbound (both via Birmingham New Street).
Shopping in central Derby is divided amongst three main shopping districts, these include the Cathedral Quarter, the St Peters Quarter and the Intu Derby shopping centre. The Cathedral Quarter was Derby’s first Business improvement District and includes a large variety of shops, boutiques, coffee shops and restaurants. This district also includes the Derby Museum and Art Gallery and Derby Central Library. The largest of these districts is the Intu Derby shopping centre which is the main shopping centre in the city, with around 199 stores, a food court and the 12-screen cinema.
There are many job opportunities in industry in Derby, it is a centre for advanced transport manufacturing, home to the world’s largest aero-engine manufacturer Rolls-Royce and Toyota Manufacturing UK’s automobile headquarters is south west of the city at Burnaston. Bombardier Transportation are based at the Derby Litchurch Lane Works were for many years the UK’s only train manufacturer and therefore the city was known as the railway centre of the UK. Derby is also home to the Royal Crown Derby, which is one of the longest-established businesses in the city and produces porcelain since the 1750s. There is also Infinity Park Derby which is a business park specifically for aerospace, rail and automotive technology.
In this area there is also a selection of local schooling options which could make this location ideal for young families looking for educational institutions in walking distance for their children. The Beckett Primary School offers mixed-sex education to the age of 11 and for those looking for education for their older children there is The Kingsmead School, which educated to the age of 16.
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