Latest Valuation
£
ROCE
927%
Location
Birmingham

Amazing R2RSA Opportunity in Birmingham City Centre

This is a hands-off business model if using a management company, therefore investor can be based anywhere.
Guide Price
£1,299

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Key Features

  • ROCE 927%
  • 3 bed - sleeps 8
  • Fully furnished with sofa bed in lounge
  • Parking space included
  • Short walk to Broad Street cafes, bars, restaurants etc.
  • Low initial investment

The Property

3 Bed Apartment in Birmingham city centre
Parking included
Fully Furnished

Investment Required:
Sourcing Fee £5,000
Rent - £1,299
Deposit - £1,299

Total = £7,598

Selling office: Sourced Manchester Central

Planning Information

N/A

The Plan

To take the property and operate as Serviced Accommodation. We can put you in contact with a management company this makes the deal an armchair investment.

Offered on a 3 year rent to rent contract with annual break clauses to give you flexibility.

The financials:
▪ Rent: £1,299
▪ Sourcing fee: £5,000
▪ 70% occupancy at 3 year annual profit: £55,1869.92
▪ ROCE: 726%
▪ 80% occupancy at 3 year annual profit: £70,502.40
▪ ROCE: 927%

The Location

Hot Spot Location

Just a few minutes walk to cafes, bars, restaurants, cinema complex & entertain on Broad Street.

1.2 miles walking to New street Birmingham Train Station

1.4 miles walking to Birmingham Bullring Mall

1.3 miles walking to Chinese Quarter

Average estimated value for a house in B16 8HT

£

Figures are based on annual averages since this is a seasonal business & spring/summer months will achieve higher nightly rates & occupancy levels than winter months.

The averages are based on 12 months bookings. Cleaning fee is paid by guests in addition to the nightly rate when they make their booking.

If business is operated & marketed correctly then over 80% occupancy can be achieved.

Average rate of £165 per night based on up to 3 guests. Can sleep up to 8 in the property.

Revenue based on up to 3 guests at £165 per night.

Monthly Occupancy 70% = £3,503.50 pcm revenue
Monthly Occupancy 80% = £4,004 pcm revenue

Costs pcm:

Rent £1299
WiFi: £25
Council Tax £125
Gas/Elec £150
Total £1,599

70% = £3,503.50 pcm revenue - £1,599 expenses - 15% management fee = £1,618.82 profit

80% = £4,404 pcm revenue - £1,599 expenses - 15% management fee = £2,639.25 profit

70% Annual Profit = £18,395.64
3 Year Annual Profit = £55,186.92
ROCE-726%

80% Annual Profit = £23,500.80
3 Year Annual Profit = £70,502.40
ROCE- 927%

PLEASE CARRY OUT YOUR OWN DUE DILIGENCE.

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