Glasgow HMO Strategy: 3 Bed High Cashflow Room-by-Room Rental Project

Glasgow · HMO / high cashflow

Our client purchased a 3-bedroom HMO in Glasgow for approximately £120,000.

Initial investment

Purchase price: Approx. £120,000
Deposit: Approx. £30,000
LBTT & ADS (Land and Buildings Transaction Tax & Additional Dwelling Supplement): Approx. £9,600
Legal & professional fees: Approx. £3,000
Furnishing & light refurbishment: Approx. £7,500
Total upfront capital: Approx. £50,000

Our client purchased a 3-bedroom HMO in Glasgow for approximately £120,000.

The property was configured and operated as a room-by-room rental, a strategy that remains highly popular in several areas of Glasgow due to strong demand from students, young professionals, and workers seeking more affordable housing options.

Income structure

Approx. £650/month per room
Approx. £1,950/month total gross income

Net cashflow & returns

Net cashflow (after mortgage, utilities, council tax, insurance, maintenance & management): Approx. £900 to £1,000/month
Net annual income: Approx. £11,000 to £12,000
Cash-on-cash return (before future capital appreciation): Approx. 22% to 24% annually

The fact that the property was purchased and operated through a limited company creates additional advantages for a potential future sale, while the existing HMO licence can serve as a significant benefit for the next buyer. This specific project was primarily based on generating strong monthly cashflow and less on the expectation of capital appreciation.

Results

Total upfront capital: Approx. £50,000
Gross monthly income: Approx. £1,950
Net annual income: Approx. £11,000 to £12,000
Cash-on-cash return: Approx. 22% to 24% annually (before capital appreciation)
In simple terms: High-yield Glasgow HMO focused on strong monthly cashflow from room-by-room lettings

Past performance is not a guide to future results. Figures reflect a specific client situation, market conditions at the time, and agreed fees. Your outcome will depend on your strategy, financing, and the property you buy.

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