6-bed HMO · Farnworth, Bolton BL4

Six en-suite rooms, let at £40,000 a year.

Offers over £300,000; we model it at £270,000. After every cost, it leaves £632 a month, and our sourcing fee is counted in the money you put in.

Initial investment£95,545All in, sourcing fee included
Net a month£632After interest and running costs
Cash-on-cash7.9%£7,583 a year on £95,545
Gross yield14.8%At £270,000; 13.3% at asking

Built on assumptions. The rent is the agent's figure and the price is our target, not yet agreed. Gross yield is 13.3% at the asking price. The investor pack sets out what's evidenced and what's assumed.

The opportunity

Already let and working, with no works to do.

The property

A detached six-bed HMO, refurbished in 2019. Every room is en-suite, and several have kitchenettes. You buy it with tenants in place.

The income

£40,000 a year works out at £128 a room a week, below the £147 local average for a double en-suite. The tenancy schedule has been requested.

The capital

Large houses nearby point to about £330,000 as a house (range £288,000–£372,000). That's our estimate, not a valuation.

The location

About 2 miles south-east of Bolton town centre, near Farnworth station, with trains to Bolton and Manchester, and close to the M61.

Every month

Rent, 6 rooms£3,333
Interest, 75% at 5.5%−£928
Running costs, 28% + bills−£1,773
Net£632

If things go against it

Rate 6.5%£463
Rent −10%£392
Rate 7.5%£294
Net a month in each case. Every case stays positive.
The paperwork

Everything you need to decide.

Documents marked Requested are with the selling agent. They'll appear here, on this same link, as they arrive.

Ready Investor pack4 pages · read online or as PDF
What happens next

We check before you commit.

  1. 1

    The real rents

    We get the actual rent and bills for each room from the agent.

  2. 2

    The licence

    We check the licence and planning use on Bolton Council's register.

  3. 3

    The lending

    A broker confirms limited company HMO rates and how the lender will value it.

  4. 4

    Your offer

    We agree an offer with you. We would not go above £285,000.

  5. 5

    Secure it

    On acceptance, a £2,000 holding deposit, then survey, searches and valuation.

Ask about this deal

Your question comes straight to Chrissie. Nothing is too small to ask.

Thank you, that's with Chrissie.

She'll come back to you by email, or by phone if you left a number. If it's urgent, call 0161 399 8877.