3-Bed HMO in Towcester

4-Bed HMO in Towcester

This 2 Bed property has a huge potential to be converted as a 4 Bed HMO in addition to its close proximity to Northampton, resulting in consistently high demand and occupancy rates all year round, providing steady growth in value and steady cashflow.

Towester HMO Investment Proposition:
Towcester presents a compelling HMO investment opportunity, supported by diversified and resilient tenant demand. The town benefits from being adjacent to Northampton, which has the University of Northampton, Northampton General Hospital and significant logistics-led employment growth, including Amazon’s new Northampton facility and planned second site, all of which continue to attract students, healthcare staff and working professionals to the area but Northampton is currently subject to Article 4 HMO conversion restrictions.

Towcester benefits from strong, diverse tenant demand driven by major employment, education and healthcare sectors, helping to support high occupancy levels. Combined with ongoing housing shortages and significant pressure on local housing supply, this creates a favourable environment for HMOs, offering the potential for consistent rental income, strong demand and long-term capital growth

The HMO Conversion will consist of reconfiguration of a sitting room to be turned into a bedroom which will result in the following layout.

- 4 bedrooms
- 1 living room
- 1 bathrooms
- 1 Kitchen
- 1 Utility
- Parking
- Garden

Total rental income pcm: £3000
▪ Rent per room: £750
▪ Monthly Net Profit : £1424 (after mortgage and bills)
▪ Annual Net Profit: £17091
▪ ROCE: 19%
▪ Gross Yield: 16%
▪ Purchase Cost: £18250
▪ Total Initial Investment :£110910

▪ Purchase price: £210,000
▪ Purchase Costs:17,750
▪ Works:£25,000
▪ GDV: £225,000

Cashflow Metrics
▪ Annual Rent: £36000
▪ Annual Profit: £17,091
▪ Gross Yield: 15%
▪ Net Yield: 8%
▪ ROCE:19%

Room Rates per month
- 1 - £750
- 2 - £750
- 3 - £750
-4 - £750

Please contact for further details.