HMO Investment Analysis

Executive Summary

This is a compelling HMO opportunity. As a First-Time Buyer with a £40,000 down payment, this property offers significant scale. The detached nature and existing 6-bedroom configuration provide an immediate path to a high-yield professional HMO. Located in the popular NR4 Eaton area, proximity to UEA and the NNUH makes it a prime candidate for medical and student professionals. We assume a 1% interest rate for calculation as per constraints, yielding highly attractive returns.

Acquisition Overview

Projected Rental Income (Post-Refurb)

Projected Cashflow & Returns

Licensing & Compliance

• Mandatory Licence: Yes (Required for 5+ occupants in 3+ storeys).
• Planning: Requires C4 use class validation; Norwich is Article 4 sensitive.

The property is a 3-storey building, meaning Mandatory Licensing applies regardless of total occupant count (as it exceeds 3 storeys if we include ground, 1st, and 2nd).

Property & Layout Analysis

Max Compliant Occupant Count: 6 (requires Bedroom 4 to be merged/upgraded or used as a non-sleeping amenity room). Recommended: Convert Bedroom 4 into an office or storage to keep licensing simple, or merge for a larger luxury master suite.

Refurbishment Plan

Scope & Standard: Medium/High (Professional HMO standard).

Focus on fire safety and en-suite enhancements to command £650+ rent.

Timeline: Weeks: 8 || Months: 2

Risk Level

Risk Level: 2

Low risk. The property is modern, detached, and essentially "ready to go." The main risk is obtaining the HMO license and potential Article 4 planning restrictions, which are standard for Norwich HMOs.

Negotiation Points

Investment Case Summary

Short Recommendation

Proceed with caution. The property is a solid 6-bed detached. Secure it below £550k given the investment required for HMO licensing and fire safety compliance.

Detailed Recommendation

This is a low-risk, high-reward detached HMO asset. With a down payment of £40,000, the high ROCE (66.0%) makes this a strong candidate for an HMO conversion. The Eaton/NR4 location is highly desirable for professionals and students. I recommend prioritizing fire safety works immediately upon acquisition to secure the license. The kitchen/diner is already a good size, perfect for communal living. Focus the marketing on professionals working at the NNUH or students at UEA, as the location is perfectly placed between both hubs. Ensure the "no chain" status is used as a lever to force a faster completion to offset the licensing delay.