Edinburgh short-term let opportunity: licensed Airbnb property
Edinburgh · Short-term let
Investment opportunity in Edinburgh: property with strong cashflow potential, long-term growth prospects and multiple exit strategies. Enquire now.
The property is located in an area benefiting from strong year-round visitor demand and is considered suitable for use as a licensed short-term rental, subject to the necessary licensing approvals and compliance requirements.
Purchase details
- Purchase price: Approximately £225,000
Potential furnishing, licensing & setup budget
- Furnishing, licensing & minor improvements (optional): Approximately £20,000
End value
- Estimated post-works value: Approximately £260,000
Option 1: Licensed short-term let (as is)
Details
- Deposit (25%): Approximately £56,250
- LBTT & ADS: Approximately £19,600
- Legal & professional fees: Approximately £3,500
- Total capital required: Approximately £79,350
Potential short-term let performance
- Average nightly rate: approximately £225/night
- Average occupancy: approximately 60%
- Average monthly revenue: approximately £4,050/month
- Net income after management, utilities, internet, insurance, cleaning, consumables and other running costs (before mortgage): approximately £2,800/month
- Mortgage payment: approximately £590/month
Details
- Estimated net cashflow: Approximately £2,210/month
- Estimated annual net income: Approximately £26,500/year
- Cash-on-cash return: Approximately 33% annually
Option 2: Refurbish, refinance & hold
Details
- Initial capital required: Approximately £79,350
- Furnishing, licensing & setup: Approximately £20,000
- Total capital deployed: Approximately £99,350
Potential short-term let performance after improvements
The investor retains ownership of the property whilst potentially releasing capital for future investment opportunities and may also choose to repay some or all loaned furnishing and setup costs from the refinance proceeds.
- Average nightly rate: approximately £250/night
- Average occupancy: approximately 60%
- Average monthly revenue: approximately £4,500/month
- Net income after management, utilities, internet, insurance, cleaning, consumables and other running costs (before mortgage): approximately £3,100/month
- Mortgage payment after refinance: approximately £680/month
Details
- Estimated net cashflow: Approximately £2,420/month
- Estimated annual net income: Approximately £29,000/year
- Estimated post-works valuation: Approximately £260,000
- 75% refinance mortgage: Approximately £195,000
- Capital released through refinance: Approximately £26,250
- Remaining capital in deal: Approximately £73,100
- Cash-on-cash return after refinance: Approximately 40% annually
Option 3: Refurbish & sell
For investors seeking a shorter-term project and quicker exit, the furnishing and licensing budget may instead be allocated towards a more extensive refurbishment programme designed to maximise resale value.
Details
- Initial capital required: Approximately £79,350
- Refurbishment budget: Approximately £20,000
- Total capital deployed: Approximately £99,350
- Potential sale price: Approximately £288,500
- Potential profit position: Approximately £43,500 before finance, tax and selling costs
- Estimated net profit: Approximately £20,000 to £25,000 after typical finance, selling and transaction costs
- Return on capital deployed: Approximately 20% to 25%
- Return on initial capital required: Approximately 25% to 32%
- Estimated project timeline: Approximately 4 to 6 months from purchase to resale
In simple terms
This opportunity offers three potential strategies depending on the investor's objectives. It can be acquired as a licensed short-term rental generating exceptionally strong cashflow, improved and refinanced to recycle capital whilst retaining ownership, or repositioned and sold for a shorter-term profit.
With strong visitor demand, attractive income potential, and multiple exit routes, the property offers investors the opportunity to combine cashflow, capital growth, and portfolio expansion within one of the UK's most established short-term rental markets.
Please note that whilst the figures above assume a standard 25% deposit buy-to-let purchase, the property may also be suitable for buyers wishing to purchase with a residential mortgage and a lower deposit, subject to lender criteria and individual circumstances.
If this opportunity is of interest, we encourage you to get in touch with us today. All opportunities are offered on a first-come, first-served basis and remain available only until reserved.
Entry cash from £79,350.
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