HMO in Peterhead
About this property
Turnkey Income Powerhouse: HMO-Fully Tenanted Portfolio
Strategy: Buy to Let (HMO) | Status: Immediate Revenue Generation
Acquire a fully operational, income-generating rental business in Peterhead, Scotland. This is not a project; it is a completed asset class consisting of two large HMO units (5-bed and 6-bed) with zero void periods. All tenancies are signed, licenses are in place, and the portfolio is generating £5,720 per month in rental income from day one.
Designed for investors seeking scalable growth and hands-off performance, this acquisition offers a rare combination of immediate cash flow and a massive 29% ROCE with a relatively modest upfront capital requirement.
Financial Performance
• Total Purchase Price: £450,000
• Upfront Capital Required: £173,144 (Leveraged entry)
• Gross Monthly Income: £5,720 (£68,640 per annum)
• Estimated Annual Net Profit: £44,000+
• Return on Capital Employed (ROCE): 29%
• Gross Yield: 15%
• Projected Capital Appreciation: +1.9%
Asset Composition
A diversified mix of two premium HMO units, maximizing rental density and tenant appeal:
• Unit 1: 5-Bedroom HMO
• Unit 2: 6-Bedroom HMO
• Total Bedroom Count: 11 Bedrooms (Note: Listed as 12 in commercial data, verified mix ensures high density)
• Rental Rate: Approx. £120 per week per room
• Condition: Well-maintained, fully licensed, and immediately operational.
Location & Market Dynamics
• Location: Noth East Scotland, AB42 (Established investment corridor).
• Demand Drivers: High affordability and consistent local employment sectors.
• Tenant Profile: Diverse mix of families, professionals, and single occupants, reducing reliance on a single tenant demographic.
• Vacancy Risk: Minimal. The portfolio is 100% let with existing tenancies, eliminating setup time and void costs.
Why This Deal?
1. Zero Downtime: No renovation, no licensing delays, and no marketing voids. Income starts on completion.
2. Superior ROCE: A 29% return on your actual cash invested is a top-tier metric for institutional and private investors.
3. Scale Efficiency: Acquire two high-yield units in a single transaction, streamlining acquisition costs and due diligence.
4. Risk Mitigation: Diversified income streams across 11+ rooms protect against single-tenant default.
5. Turnkey Management: Ideal for passive investors; fully supported by a nationwide lettings and management service.
Full Support Ecosystem
We provide a complete end-to-end solution to ensure your investment performs:
• Deal Packaging: Comprehensive financial breakdown and letting history included.
• Corporate Structure: Setup of Limited Company SPV and specialist accounting.
• Finance Access: Specialist property finance solutions tailored for high-yield HMOs.
• Asset Management: Nationwide lettings, maintenance coordination, and tenant screening.
Secure a proven cash-flowing asset today. Full investment pack to be provided available upon request.
Investment calculators
Estimate only, using UK additional-property SDLT rates. Confirm the exact figure with a solicitor or accountant before exchanging.
Ltd company (SPV) purchases pay the same additional-property SDLT rates, but mortgage interest is fully deductible against rental profits.
Need finance? Sourced Financial Services specialise in HMO mortgages and can secure same-day decisions in principle.
Speak to a broker