5-Bed HMO in Scarborough

Long-Term Social Housing Lease High-Yield HMO Investment Opportunity
BMV: 28% / ROCE: 33% / Gross Yield: 12%

We are pleased to present an exceptional investment opportunity in Scarborough, structured for long-term stability and cash flow. This property is prime for a 5–10-year lease agreement with a reputable social housing provider, offering a hands-off, investment model with guaranteed rental income.

Investment Highlights
• Purchase Price: £108,000 (This is a distress sale and has been massively reduced from £150k).
• Below Market Value (BMV): £42,000 or 28%
• Refurb & HMO conversation cost: £30,000
• Cash Investment Required: £70,760 (Including deposit, sourcing fee, legal fees, Refurb cost: etc.)
• GDV (Gross Development Value): £160,000
• Cash-Out via Refinance: £ 39,000.00
• Cash left in the deal £31,750
• Gross Rental Income: £1625pcm / £19500per annum
• Net Cash Flow: £875 pcm / £10500 per annum (after insurance & mortgage)
• ROCE: 33%
• Gross Yield: 12%
• Net Yield: 7%

The Social Housing contract Advantage
• Long-Term Security: Ideal for 5–10-year contracts with a social housing provider, ensuring consistent occupancy with no voids.
• Guaranteed Rent: Benefit from consistent rental payments, regardless of tenant turnover.
• Low Management Burden: Long-term leases with a housing provider include full maintenance and management responsibilities, minimising your active involvement.
• Stability: Social housing contracts provide an institutional-grade lease structure, insulating your investment from standard market fluctuations.

Full Support Package
This opportunity includes access to a comprehensive support package:
• Sourced Enterprise: Full limited company SPV and accounting solution.
• Sourced Finance: Specialist lending not available on the high street.
• Sourced Living: Fully compliant lettings management service.
• Legal: Conveyancing team available if required.

Next Steps
This asset is positioned for long-term stability and is ready for rapid acquisition. To request full compliance documentation, discuss the lease terms, or reserve this opportunity, please contact us today.