Four-bed HMO-ready terrace already licensed for five occupants. The strongest gross yield on the list, and the heaviest management load.
Why this one
Already licensed for five occupants, which removes the slowest and least predictable part of an HMO conversion. At 7.83% this is the strongest gross yield on the list.
What we would watch
Gross is not net. Five rooms means five tenancies, bills included, and a management load closer to running a small business than holding an asset. Model it at 70% of gross before deciding.
Run it with your own deposit and rate
The price and rent below are already this property’s. Change the deposit, the rate or the mortgage type and every figure updates.
This deal
Mortgage type
Gross yield7.83%
Stamp duty£9,295
Deposit£42,125
Monthly interest£569
Monthly cashflow£531
Total cash in£53,920
Cash-on-cash return11.82%
England & NI rates including the 5% additional-dwelling surcharge. Figures are an estimate, not tax advice.