7-Bed HMO in Scarborough

Hands-Off Government-Backed 7-bed HMO Investment Opportunity - STPP
Long-Term Social Housing Lease | ROCE 51% | Yield 17%

Secure a high-performing HMO investment structured for a long-term lease with a government-backed accommodation provider. Designed to deliver strong cash flow with minimal day-to-day involvement, this opportunity is ideal for investors seeking predictable income and long-term stability. Subject to Planning permission.

Investment Highlights
• Purchase Price: £130,000
• Estimated Refurbishment Budget: £20,000
• Estimated GDV / Refinance Value: £170,000
• Cash Investment Required: £67,100 (including deposit, stamp duty, sourcing fee, legal costs and refurbishment)
• Cash-Out via Refinance: £30,000
• Projected Gross Rental Income: £2,426.66 pcm / £29,119.92 per annum (After insurance & mortgage)
• Projected Net Cash Flow: £1,586.03 pcm / £19,032.42 per annum (after insurance & mortgage)
• Projected Gross Yield: 17%
• Projected Net Yield: 11%
• ROCE: 51%

Key Benefits
• Long-Term Lease Security
• Guaranteed Rental Income
• Minimal Management – Day-to-day tenant management and property operations are handled by the housing provider.
• Reduced Void Risk – Long-term institutional leases provide reliable occupancy and predictable income.
• Strong Cash Flow – Projected net income exceeding £19,000 per annum.
• Excellent Return on Capital – Forecast 51% ROCE following refinance.

Comprehensive Investor Support
Your investment is supported by a complete Sourced acquisition and management solution, including:
• Sourced Enterprise – Limited company/SPV formation and specialist accounting support.
• Sourced Finance – Access to specialist investment mortgages and refinance products.
• Sourced Living – Fully compliant lettings and property management services.
• Specialist Conveyancing – Dedicated legal support throughout the purchase process.

An Investment Designed for Long-Term Stability
With an anticipated refinance value of £170,000, the opportunity to recycle £30,000 of your initial investment, and projected annual net cash flow exceeding £19,000, this investment offers an attractive combination of capital growth, income and long-term security.

If you would like the full investment appraisal, refurbishment schedule, cash flow analysis or to discuss the suitability of this property for a long-term social housing lease, please get in touch today.