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HMO deal stacker

Run a potential HMO through the numbers — purchase, refurb, rooms, rents and finance — and see the yield, monthly cashflow, return on your cash, and whether it clears a lender’s stress test. Save deals to this browser or export a PDF.

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Worked example · 6-bed HMO

This deal stacks

Monthly cashflow

£1,354

Return on cash

13.3%

Gross yield13.2%
Net yield9.2%
Cash required£122,000

Purchase

Stamp duty
£15,000

Additional-property SDLT, England

Finance

Mortgage type

Rental income

per week

Lender stress test

Rent the lender needs£1,926 / mo
Your monthly rent£3,380 / mo
VerdictClears the test

Monthly running costs

Letting / management
£

Refinance (BRRR)

Model pulling money back out after the refurb, against the post-works value.

Monthly cashflow

£1,354

Return on cash

13.3%

This deal stacks

Positive cashflow · clears lender stress test

Your rent £3,380Needs £1,926

Gross yield (on cost)

13.2%

Gross yield (on value)

12.7%

Net yield

9.2%

Equity created

£12,500
Mortgage loan£187,500
Deposit£62,500
Stamp duty£15,000
Total cash required£122,000
Total investment£307,500
Monthly rent£3,380
Mortgage / month£1,016
Running costs / month£1,010
Annual cashflow£16,253
Months to recoup cash91
Discount vs market value£70,000 (21.9%)

Monthly cashflow as rates change

break-even6.5%3%10%

Estimates only, for England. Stamp duty is auto-calculated from the additional-property SDLT bands; the lender test uses 145.0% cover at 8.5%. Check the figures with your broker and accountant.