HMO Sample Deal Pack

5-Bedroom Professional HMO Yield Engine

A redacted investment-style deal pack showing acquisition, refurbishment, refinance, income, operating costs, cash flow, stress testing and risk profile for a professional HMO.

Working Professionals 5 Rooms Refurb + Refinance Compliance-Led
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Headline Deal Metrics

Sample Pack
Total Capital Invested £305,000
Post-Refurb Valuation £325,000
Annual Cash Flow ~£10,844
Yield on Capital Left In ~17%

Figures are illustrative and subject to valuation, finance terms, licensing, compliance checks and full due diligence.

Property Photo Layout

5-bedroom professional HMO photos.

Photos demonstrate the quality of finish, communal living space, kitchen-diner, bedroom presentation and en-suite facilities for professional tenants.

Communal lounge
Communal Lounge Shared living area with quality finish and professional tenant appeal.
Bedroom 1
Bedroom 1 Spacious furnished room with clean, modern presentation.
Kitchen diner
Kitchen-Diner Modern communal kitchen and dining setup.
Bedroom 2
Bedroom 2 Additional room example with consistent interior finish.
En-suite bathroom
En-Suite / Bathroom Clean washroom finish with shower and compliance-focused layout.
Acquisition & Works

Clear capital stack from purchase to completed refurbishment.

The pack separates purchase cost, planned refurbishment and contingency so an investor can quickly understand the total funding requirement before refinance.

Purchase Price £265,000
Refurbishment Budget £35,000
Contingency £5,000
Total Capital Invested £305,000
Refinance Scenario

Capital recycling after post-refurb valuation.

Based on a post-refurb valuation of £325,000 and a 75% refinance scenario, most capital is recycled while leaving a controlled amount in the deal.

Post-Refurb Valuation £325,000
Refinance LTV 75%
Capital Recycled £243,750
Capital Left In Deal ~£61,250
Total Capital Invested £305,000
Investor Position Yield-focused cashflow asset

Designed as a portfolio income engine, subject to lender terms and HMO compliance.

Income Model

Room-by-room rental model with realistic operating costs.

The deal is modelled on five professional rooms at an average rent of £625 per calendar month.

Rental Breakdown

5 Rooms @ Avg £625 pcm£3,125 pcm
Monthly Rent£3,125
Annual Rent£37,500

Operating Costs

Bills£5,500
Management£3,750
Maintenance£2,000
Voids£2,000
Total Costs~£13,250

Cash Flow

Net Operating Income~£24,250
Mortgage Interest~£13,406
Annual Cash Flow~£10,844

Investor Metrics

Yield on Capital Left In~17%
DSCR1.80
Deal TypeYield Engine
Stress Testing

Downside scenarios still show resilience.

The sample pack shows how the deal performs if rooms are vacant or interest rates move higher. This helps investors assess risk before proceeding.

1 Room Vacant for 3 Months

Reduced room income is applied for a temporary void period.

~£8,500

Estimated annual cash flow after stress.

2 Rooms Vacant for 3 Months

A stronger void scenario showing the effect of two temporary vacancies.

~£5,000

Estimated annual cash flow after stress.

Interest Rate @ 7.5%

Finance stress test applied to assess mortgage coverage.

DSCR ~1.45

Still viable subject to lender criteria and full due diligence.

Risk Profile

Every strong deal pack should show the risks clearly.

HMO investments can produce strong cash flow, but they require proper licensing, operational control, tenant management and ongoing compliance oversight.

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Licensing
Local HMO licensing rules and council requirements must be checked before completion.
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Compliance
Fire safety, room sizes, amenities and documentation must be evidenced.
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Higher Tenant Turnover
Professional HMOs can require stronger management than single-let properties.
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Management Oversight
Cash flow depends on disciplined lettings, maintenance, inspections and arrears control.

This is the yield engine in a portfolio.

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This sample is for information only and is not financial advice. Investors should obtain independent tax, legal, lending and valuation advice before proceeding.