Let by the room, you'd make about £2,693 a month, and it holds up.

Why it works

• Monthly profit +£2,693/mo from completion — the no.1 reason to invest

  This is the money left after the mortgage, the running costs and tax — not the rent.It assumes the rent we modelled and the empty weeks we assumed. Change either and it moves. Try your own numbers →
• 24.8% Rent by the room return before costs (net 14.00% after CapEx + bills) — conversion play

  Letting by the room, after the conversion. The whole gap between this and the plain rent is the reason to do the work.It needs the rooms, the licence and — in an Article 4 area — planning permission. None of those is automatic. See the conversion →
• Priced below market -12% vs 12 nearby sold (last 12 mo) — instant equity

  What it is being asked against what nearby homes actually sold for.Land Registry records carry no bedroom count or floor area, so a small and a large home both count as one sale here. See the comparables →
• 20.4% 5y IRR — strong total return on capital

  Rent, mortgage paydown and price growth together, annualised over five years.It assumes 2% a year of price growth. Strip that out and most of the return is the rent. See the projection →

Why to be cautious