HMO · Property AnalysisEvaluation of the 2-bed terrace auction opportunity on Evelyn Street, Warrington. Analysis assumes conversion to a 3-bed professional HMO.
This property is a classic 'BRR' (Buy-Refurbish-Refinance) candidate suitable for a first-time investor. Located in Warrington (WA5), this 2-bedroom terrace is currently dated but structurally sound. By converting the ground floor living space into a third bedroom, we create a high-demand 3-bed HMO. With a purchase price of £80,000, and a calculated cash input based on your £40,000 down payment, this deal offers significant yield potential once modernised to meet professional housing standards.
Analysis based on first-time buyer status using provided financing parameters.
Rental estimation is based on comparable data in Warrington, where professional ensuite rooms command £500-£650pcm. Given this is a 3-bed house, we maintain conservative estimates for long-term void management.
Current layout supports 3 occupants. Fire safety upgrades (FD30 doors, interlinked alarms) are mandatory for insurance and compliance.
Max Compliant Occupant Count: 3. Recommended Layout: Convert ground floor to Bedroom 3; utilize existing kitchen as shared diner.
Medium-High Standard: Targeting professional tenants requires modern, clean, and durable finishes to ensure low maintenance and higher rent retention.
Kitchen: Kitchen Units - Cost: £2,500 | Integrated Oven - Cost: £400 | Induction Hob - Cost: £300 | Fridge Freezer - Cost: £500 | Washing Machine - Cost: £400 | Microwave/Kettle/Toaster - Cost: £300
Bathrooms: Bath/Shower Suite - Cost: £1,200 | Toilet/Sink - Cost: £400 | Tiling/Flooring - Cost: £600 | Towel Radiator - Cost: £200 | Mirrors/Accessories - Cost: £200
Safety: FD30 Fire Doors (x4) - Cost: £1,200 | Interlinked Smoke Alarms - Cost: £400 | Fire Extinguishers/Blanket - Cost: £150 | Emergency Lighting - Cost: £300 | Thumb-turn locks - Cost: £200
Weeks: 8 || Months: 2
Risk Level: 45 (Moderate). The risk is driven by the auction nature and the dilapidated condition. If structural issues exist beyond standard wear and tear, costs may spiral.
Warrington is a high-demand market for professionals due to its strategic position between Liverpool and Manchester. The "Lovely Lane" area and surrounding streets are well-serviced by the hospital and business parks. Our comps confirm strong demand for room shares, with professional en-suite rooms achieving up to £650pcm in prime refurbished properties. By taking this terraced house from a neglected state to a "design-led" co-living space, we position ourselves in the top quartile of local rental stock, justifying premium rent while minimizing void periods.
Buy at £80k. Perform a comprehensive full refurb to high standards. Target young professionals in the WA5 area. High return potential, but inspect for damp before bidding.
This is a textbook HMO value-add project. The purchase price is highly attractive for the area. The critical path is the ground floor conversion and the structural remediation of damp/walls seen in the imagery. Do not underestimate the cost of the fire safety package; it is non-negotiable for HMOs. Ensure your "first-time buyer" mortgage product is ready prior to auction. Given the 22.5% Gross Yield, this asset will pay for itself rapidly, provided the refurb is managed efficiently. Avoid "cheap" fixes; target a professional aesthetic to attract the hospital and business park workforce.