Hello readers,
A fantastic property on Foord Street, Rochester has come up for sale by auction with a guide price of £180,000 – £200,000. You can view the listing here and the auction date is 18th September.
This three-bedroom property is in need of extensive refurbishment but has excellent potential. There is no floor plan, but with my knowledge of the area, it’s likely you will be able to convert the space into five or six bedrooms, most with en-suite bathrooms.
The listing has a virtual tour which would be worth watching and you can see that below.
With Rochester HMO rents ranging between £650-£750 for en-suites and £575-£650 for non-en-suites, this property could offer substantial returns. It’s hard to calculate a potential yield because with the property being sold by auction, it’s likely to go somewhat over the guide price.
One word of caution is that upon further inspection, there seem to be potential structural issues, with noticeable cracks throughout the property. You will want to proceed with caution and do your due diligence, so a full structural survey is highly recommended before proceeding.
Depending on the extent of refurbishment, you could be looking at renovation costs ranging from £35,000 to £100,000, depending on the level of work conducted. The gross rental income could potentially reach between £3,000 and £3,500 per month, with minimal void periods due to the high demand in this area.
Regarding the conversion, you may need planning permission from Medway Council to convert it from a residential building to an HMO. However, this is likely to be granted if proper health and safety regulations are followed. This includes the installation of fire doors, interlinked smoke alarms, carbon monoxide detectors, and a heat detector in the kitchen.
With the property being sold by auction, remember that fees will need to be paid, which you can view here and you will need to have your finance lined up in order to complete quickly. It’s likely you will need bridging finance to purchase this property and I would recommend Wharf Financial, who will be able to assist.
Medway, particularly Rochester, continues to be a strong area for investment, especially within the HMO market. This property could be a promising opportunity for the right investor.
For more advice or details about converting this property, feel free to contact me through LinkedIn. Also, don’t forget to subscribe to Medway Property News for updates on the latest buy-to-let deals!
Hasan
