Belvoir Liverpool Central are offering an opportunity for investors to purchase two flats together with one of the flats offering a tenant in situ. It’s what you would call an ‘investor exclusive’ and suggests the vendors are keen to sell quickly – hence the price. You can see the details here for the first apartment and here for the second.
The total asking price for both flats is £50,000 and the annual income potential is £8,760 making this a very attractive yield over 17%. Judging by the photos, the tenant in situ seems content and the agent states the second flat is ready for the next tenant.
When a yield is this high, I tend to weigh up the risks involved.. is there any work? What sort of tenant would it attract? Why are they so cheap? So I spoke to the agent who advised the communal areas would benefit from some cosmetic work ie. fresh paint but the apartments themselves are in good condition. The empty flat would need a clean before somebody moved in but this is pretty standard. The location of the flats would be ideal for a single person who needs to commute to work but could potentially attract D.S.S. The seller is motivated to sell after making improvements to comply with HMO licencing and may have been given wrong advise at the time.
I think overall, it looks like a fantastic opportunity. As always, your comments, questions and feedback is more than welcome.