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Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property
Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property

Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property

Last Update: April 24th 2019 / by Marco Schwartz

The most important and also the most exciting part of building a solid investment portfolio is to consistently add new investments to the portfolio, for example in the form of investments in real estate or REITs.

Every time I am adding a new position in my property portfolio, I am posting this short report. Inside this report, you will find what I actually bought, an overview of the financials of the investment, and finally what this new purchase added to my annual income.

These reports are here to show you how I reason before making an investment, but also to give you the motivation to do the same and start building your property empire.

Today, I invested a total of £500 in a Multi-Unit Mixed-Use Property in Derby, UK.

Description

I made this new investment on Property Moose, a real estate crowdfunding platform where I already bought similar investments in the past. Here, the property is a multi-unit mixed-use property in Derby, in the United Kingdom.

This property is really interesting because it combines two things that I love in real estate crowdfunding deals: it's a multi-unit property, as well as a mixed-used property. For the first part, it means that one large part of the property is what's called in the UK a HMO, or House with Multiple Occupancy. This means that they split the property into multiple individual rooms, with a shared kitchen & bathroom for the tenants. Therefore, it makes the property rent quite high compared to other properties of the same area.

It is also a mixed-used property, meaning that the front of the property is a commercial unit. Therefore, there is already a large diversification right inside this single deal, and I love that for my portfolio.

Again, thanks to real estate crowdfunding, I’ve been able to invest in such a property. Also, as for all property crowdfunding investments, the property will be completely managed for me. On my own, even if I had the money to buy this property I would have no idea how to actually manage it.

This is a picture from inside the property:

Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property

This is a picture of the commercial unit:

Crowdfunded Property Purchase: Tenanted Multi-Unit Mixed-Use Property

Financials

Let’s now have a look at the financials for this property. The total amount required for the investment £207,360, which includes funds for the renovation, insurance, and money to cover unknown future expenses. This deal was also quite original on the platform, as this only covers half the property, the rest being paid by a loan.

The property yields at a very nice 7.53%, thanks to the fact that the property is split between several tenants. This is an excellent yield for real estate, and something I really wanted to have in my portfolio!

Of course, there might be some rental voids along the way, but it is not really an issue as there are many tenants in this single property, therefore the yield won't drop to 0 whenever somebody is moving out, like it would if you just owned a single apartment.

Conclusion

This purchase will add £37.65 to my yearly income, based on the expected yield. Thanks for reading this purchase report, and if you have any comment please leave it below!

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