Electric House, Castle Street, Newcastle Emlyn

Description

The property comprises a high yielding, multi-let, mixed use investment opportunity. Arranged as a ground floor retail unit with two separately accessed flats to the upper parts, the property is fully let to three separate tenants producing a total rent of £18,840 per annum. The ground floor comprises a retail unit with a double height barn/storage area to the rear. The unit is currently let to a charity shop and producing £7,200 per annum. Flat 1 comprises a one bedroom flat and is let to a long standing tenant producing £4,740 per annum (395 pcm). Flat 2 comprises a two bedroom flat and is let to a private individual producing £6,900 per annum (575 pcm).

Accommodation

Ground floor retail unit with double height barn/storage area to the rear; Flat 1: one bedroom flat; Flat 2: two bedroom flat.

Location

The property occupies a prominent frontage to Castle Street and forms part of the principal retail amenity within the town. The surrounding area is characterised by similar mixed uses.

Tenure / Property Information

Investment Analysis

The £80,000 guide equates to approximately 4.25 times the stated annual rent of £18,840, implying a gross yield of 23.55% on the guide price. No completed sales, valuation evidence, lease terms, buyer costs or market-value evidence are supplied, so a GDV range and evidence-based maximum bid cannot be established. The current rent is stated as passing rent from three tenants, including a charity shop and two residential tenants.

Investment Snapshot

Strategy Recommendation

Income-focused acquisition may be considered if the guide price is achieved, subject to verification of the three tenancies, leases, tenant covenants, rent payment history and mixed-use lending terms. Do not rely on a flip or BRRRR uplift without independent valuation and finance advice.

Works Required

No specific defects or required works are identified in the supplied evidence. Allow for normal inspection, compliance and maintenance checks before bidding, but no refurbishment budget is supported.

Rental & Market Context

Potential BRRR Position

A refinance-based strategy cannot be fully assessed because no GDV, valuation evidence, finance terms or refinance costs are supplied. The stated rent provides strong initial gross income relative to the guide, but the mixed-use composition and limited lease information may affect lender appetite and valuation. No refurbishment uplift is evidenced.

Buy-to-Let Analysis

The property is fully let to three separate tenants and produces stated annual rent of £18,840, equivalent to £1,570 pcm. At the £80,000 guide, the gross yield is approximately 23.55%, before finance, maintenance, insurance, management, voids, tax and other ownership costs. The two residential rents are £395 pcm and £575 pcm; the retail rent is £7,200 per annum. Lease lengths, repairing obligations, tenant covenant and arrears information are not supplied.

Flip Analysis

A flip analysis is not supported by the evidence. No market value, comparable sales, refurbishment requirement, selling costs or resale allowance is supplied, and the property is fully let to three tenants. The investment case is income-led rather than an evidenced resale-value opportunity.

Investor Risks & Due Diligence

• Three separate tenancies create lease, covenant, arrears and management risk.

• The retail unit is occupied by a charity shop; tenant covenant and lease terms are not supplied.

• Mixed-use lending and valuation treatment may differ from a standard residential investment.

• No lease lengths, repairing obligations, deposit details or rent review information are provided.

• The quoted gross yield excludes finance, maintenance, insurance, management, voids, tax and other ownership costs.

• No condition, EPC, compliance, building-services or statutory information is supplied.

Recommendation

Income-focused acquisition may be considered if the guide price is achieved, subject to verification of the three tenancies, leases, tenant covenants, rent payment history and mixed-use lending terms. Do not rely on a flip or BRRRR uplift without independent valuation and finance advice.

Strategy Rating

Analysis Confidence

The passing rent, occupancy, tenure, accommodation and guide price are supplied, allowing a guide-price gross yield calculation. Confidence is reduced by the absence of lease details, operating costs, condition information, comparable sales, valuation evidence, buyer fees and finance terms.