Latest Valuation
£
ROCE
%
Location
Manchester

R2R SA Opportunities in Manchester and Liverpool

You have control of the properties for the duration of the contract and benefit from profits just as if you own the property yourself.
Guide Price
£850

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Key Features

  • Great location in Manchester and Liverpool
  • Healthy monthly cash flow profit
  • Hands-off business model
  • Outstanding ROI of 450% + full term of contract
  • Perfect for business commuters, contractors and leisure clients
  • Low initial investment

The Property

Sourced are excited to present these outstanding rent to rent serviced accommodation opportunities in Manchester and Liverpool.

Manchester property:
2 bed, 2 bath fully furnished including gated parking
Rent: £850
Sourcing fee: £4,000 reduced from £5,000
70% occupancy profit: £8,460 pa
80% occupancy profit: £11,556 pa

Liverpool property:
2 bed 2 bath with balcony
Rent: £900
Sourcing fee: £3,500 reduced from £4,500
70% occupancy profit: £7,858 pa
80% occupancy profit: £10,952 pa

Planning Information

N/A

The Plan

We have some great rent to rent serviced accommodation opportunities.

Discounted sourcing fees - valid until 22nd of November 2020.

Prime locations.

Manchester City Centre and Liverpool City Centre.

The plan would be to take each property on a 3 years (some cases 5 years) rent to rent deal & build a portfolio of serviced accommodation properties with a low initial investment compared to BTL. Initial investment is usually 2-3% of the value of the property therefore making this the most cost effective way of building a property portfolio without paying for 25-30% deposits, stamp duty, legal fees, furnishings etc.

You have control of the property for duration of contract & benefit from profits just as if you own the property yourself.

The actual owner of each property is responsible for maintenance, service charges and ground rents which is a substantial cost saving for you over the duration of the contract.

Serviced accommodation has become very popular in recent years with investors. Rent to Rent deals allows investors to benefit from all the perks of owning a property, without the high initial purchase costs.

This is great for new and experienced investors as it allows you to take full control of a property without having to put down 25% deposits, stamp duty, legal fees and furnishings.

For example, if you were in the market to purchase a buy to let property and operate as serviced accommodation at a purchase price of £200,000 you will need to have £50,000 initial investment plus associated costs
such as stamp duty and legal fees. With £50,000 you will only gain the cash flow benefits from 1 property.

However, if you used this £50,000 to invest into rent to rent properties, you would gain 8-10 properties which you have full control of for 3 years. This means you're making the most out of your £50,000 investment as you are making 8-10 times the cashflow compared to just 1 cashflow if you spent your £50,000 on buying just 1 property. Furthermore you are saving on maintenance costs, service charges and ground rents on these rent to rent deals.

The Financials:

Liverpool property:
Rent: £900
Sourcing fee: £3,500 reduced from £4,500
70% occupancy profit: £7,858 pa
80% occupancy profit: £10,952 pa

Manchester property:
Rent: £850
Sourcing fee: £4,000 reduced from £5,000
70% occupancy profit: £8,460 pa
80% occupancy profit: £11,556 pa

The Location

Central locations where demand is high for serviced accommodations, prime for contractors, business professionals and leisure clients.

Average estimated value for a house in

£

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

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

If the business is operated and marketed correctly then over 80% average occupancy can be achieved.

Manchester 2 bed 2 bath with gated parking property:

Average price per night £100 based on up to 2 guests. Add an extra £15 per guest, property can sleep up to 6 guests with a sofa bed in the lounge (£60).

Figures based on £100 per night:

70% occupancy monthly revenue = £2,123
80% occupancy monthly revenue = £2,426

70% occupancy = £2,123 - 15% management £318 - rent £850 - bills £250 = £705 profit pcm
80% occupancy = £2,426 - 15% management £363 - rent £850 - bills £250 = £963 profit pcm

70% occupancy annual profit = £8,460
70% contract term profit = £25,380
ROCE = £25,380 / £6,100 x 100 = 416%

80% occupancy annual profit = £11,556
80% occupancy contract term profit = £34,668
ROCE = £34,668 / £6,100 x 100 = 568%

Liverpool city centre 2 bed 2 bath property:

Average price per night £100 based on up to 2 guests. Add an extra £15 per guest, property can sleep up to 6 guests with sofa bed in the lounge (£60).

Figures based on £100 per night:

70% occupancy monthly revenue = £2,123
80% occupancy monthly revenue = £2,426

70% occupancy = £2,123 - 15% management £318 - rent £900 - bills £250 = £655 profit pcm
80% occupancy = £2,426 - 15% management £363 - rent £900 - bills £250 = £913 profit pcm

70% occupancy annual profit = £10,960
70% contract term profit = £32,868
ROCE = £32,868 / £5,400 x 100 = 436%

80% occupancy annual profit = £11,556
80% occupancy contract term profit = £34,668
ROCE = £32,668 / £5,400 x 100 = 608%

Please also do your own due diligence.

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