77 Southchurch Avenue, Southend-on-Sea, Essex

Description

Arranged over three floors this Freehold Licensed H.M.O. comprises of 9 x rooms / bedsits. We have been informed that the property is fully let and producing a gross income of £72,900 per annum with potential to increase this further in the future. Southend Seafront, the High Street and two Mainline Railway Stations are within easy reach of the property

Accommodation

9 x Individual Rooms / Bedsits (all of the above have their own private kitchen facilities); 2 x with En-Suites; 7 x Shower Rooms; Front Garden; Good Sized Rear Garden.

Location

Southend Seafront, the High Street and two Mainline Railway Stations are within easy reach of the property

Tenure / Property Information

Investment Analysis

The £525,000 guide implies a headline gross income yield of approximately 13.89% based on the stated £72,900 annual gross income. No completed-sale comparables, formal valuation, GDV evidence, condition report, refurbishment scope or buyer/admin fee schedule were supplied. The guide is stated to be plus fees, so the effective acquisition cost is higher than £525,000.

Investment Snapshot

Strategy Recommendation

Investigate as a potential income-led HMO purchase, subject to verifying the £72,900 gross income, occupancy, HMO licence and compliance, and obtaining full fee and operating-cost information. Do not rely on a BRRR or flip strategy without valuation and works evidence.

Works Required

No specific defects or refurbishment works are evidenced. Before bidding, verify the condition, HMO licensing and compliance position, room facilities, fire safety arrangements and any required maintenance.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because no GDV, refurbishment budget, finance terms or fee schedule is supplied. The stated income may support refinancing subject to lender treatment of the HMO, verified accounts, licensing and valuation, but the refinance amount and cash left in cannot be calculated.

Buy-to-Let Analysis

The stated fully let gross income of £72,900 per annum equates to £6,075 per month and produces a 13.89% gross yield on the £525,000 guide. This is a gross, not net, return: operating costs, utilities, management, licensing, maintenance, voids, finance, taxes and the unspecified buyer fees are not provided. No external rental comparables were identified, so the stated income should be independently verified rather than treated as an achieved market-rent valuation.

Flip Analysis

A flip analysis is unsupported because no condition-based works allowance, completed-sale comparables, GDV or selling-cost allowance has been supplied. The property is presented as a fully let income-producing HMO, making an income strategy more directly evidenced than resale.

Investor Risks & Due Diligence

• The £72,900 figure is stated gross income and has not been supported by tenancy schedules, bank statements or external rental evidence.

• The property is fully let, but occupancy, rent levels, arrears and tenancy terms have not been independently evidenced.

• The HMO is described as licensed, but licence details, expiry, conditions and compliance documentation were not supplied.

• Buyer fees are unspecified and the guide is expressly plus fees.

• No condition report or refurbishment budget was supplied, so total project cost cannot be established.

• Operating expenses, utilities, management, maintenance, voids, finance costs and taxes are not provided.

• No EPC, council tax, heating or parking information was supplied.

Recommendation

Investigate as a potential income-led HMO purchase, subject to verifying the £72,900 gross income, occupancy, HMO licence and compliance, and obtaining full fee and operating-cost information. Do not rely on a BRRR or flip strategy without valuation and works evidence.

Strategy Rating

Analysis Confidence

The stated tenure, HMO configuration, occupancy and gross income support a headline yield calculation, but there are no comparables, GDV, condition, refurbishment, licensing-detail, operating-cost or buyer-fee figures.