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Heidelberg Road investment property in Portsmouth
Serviced Accommodation1 SA UnitHot Tub & Sauna
Serviced Accommodation · Portsmouth, Hampshire

Heidelberg Road

A £260,000 Portsmouth purchase, bought with a 75% mortgage and operated as a self-contained serviced accommodation unit — styled to hotel standard with a private hot tub and barrel sauna — producing £11,325 of net cashflow a year after mortgage, a 10.5% cash-on-cash return.

£11,325
Net cashflow / yr
10.5%
Cash-on-cash return
£108,000
Cash invested
£300,000
End value (GDV)
Project overview

One purchase, one premium serviced accommodation unit

Heidelberg Road was acquired for £260,000 and refurbished into a self-contained serviced accommodation unit, combining a premium guest experience with disciplined, data-led revenue management.

Location

Portsmouth, Hampshire — a dense, year-round city market with naval, NHS, university and tourism demand and excellent transport links.

Property Strategy

Purchase, refurbish and furnish as a self-contained serviced accommodation unit, then operate it on short stays across direct booking and all major OTA platforms.

Purchase Condition

Acquired as a tired residential property requiring full modernisation, restyling and a standout outdoor feature to differentiate it.

Refurbishment & Furnishing

£30,000 of refurbishment and furnishing — designer interior styling throughout, premium features including a hot tub and barrel sauna, and a complete furniture and technology fit-out.

Investment Objectives

Maximise nightly rate and occupancy, build a strong direct-booking base, and generate dependable monthly cash flow with capital upside.

Why This Location

Portsmouth's diverse, non-seasonal demand and limited premium short-stay supply make standout SA homes highly competitive and resilient.

The transformation

Before & after

From a single dated residential property to a design-led serviced accommodation unit operating across the year.

BeforeHeidelberg Road rear yard before refurbishment — cracked concrete and bare walls

Starting point

A tired property with a bare, cracked-concrete rear yard and dated interiors — limited income ceiling as a traditional let.

AfterHeidelberg Road after refurbishment — private hot tub and barrel sauna garden

Completed project

The same space transformed: a private hot tub, barrel sauna and landscaped garden, finished to hotel standard and ready for guests.

£108,000
Cash invested
£11,325
Net cashflow / yr
10.5%
Cash-on-cash return
Financial performance

The numbers behind Heidelberg Road

A transparent breakdown of the project economics — from acquisition through to stabilised investor returns.

Purchase Price
£260,000
Purchase Mortgage (75% LTV)
£195,000
Deposit (25%)
£65,000
Purchase Costs (SDLT, legal)
£13,000
Renovation & Furnishing
£30,000
Total Cash Invested
£108,000
End Value (GDV)
£300,000
Equity in Property
£105,000
Net Operating Income / yr
£24,000
Mortgage Interest (6.5% IO)
£12,675
Net Cashflow / yr
£11,325
Cash-on-Cash Return
10.5%

Heidelberg Road was bought with a mortgage rather than cash: a £260,000 purchase funded by a £195,000 mortgage (75% LTV) and a £65,000 deposit, plus £13,000 of purchase costs and £30,000 of refurbishment and furnishing — £108,000 of cash invested in total. The unit generates £24,000 of net operating income a year; after £12,675 of mortgage interest (6.5% interest-only), net cashflow is £11,325 a year (about £944 a month) — a 10.5% cash-on-cash return on the cash deployed, with £105,000 of equity held in the property against a £300,000 valuation. Figures are illustrative and do not constitute financial advice.

Investor returns

Performance at a glance

How capital, equity and cash flow build over the hold period.

Cumulative net cashflow

Net cashflow after mortgage over five years at £11,325 / yr
£11.3k
Y1
£22.7k
Y2
£34.0k
Y3
£45.3k
Y4
£56.6k
Y5

Monthly net cashflow

Net monthly cashflow after mortgage as the unit stabilises
£0.6k
Launch
£0.8k
M3
£0.9k
M6
£0.9k
Stable

Where the income goes

Net cashflow vs mortgage interest (of operating income)
47.2%
Net cashflow
Net cashflow: £11,325 (47%)
Mortgage interest: £12,675 (53%)
Cash-on-cash: 10.5%

Equity position

Equity held in the property (GDV less mortgage), building over the hold
Investor case study

How Heidelberg Road created value

A purchase-and-operate serviced accommodation project — from acquisition through to two stabilised, income-producing units.

Acquisition

Bought for £260,000

A Portsmouth property acquired for its layout and its potential as a high-performing serviced accommodation unit in a proven, year-round demand market.

Transformation

£30,000 refit & furnishing

Refurbished, styled and fully furnished into a premium SA unit, with premium features, smart self-check-in and a complete technology fit-out.

Financial results

£24,000 net operating income

Launched across direct booking and the major OTAs, settling at c.£24,000 of net operating income a year, with the property valued at £300,000.

Outcome

10.5% cash-on-cash

Bought with a 75% mortgage: £108,000 of cash invested produces £11,325 of net cashflow a year after mortgage interest — a 10.5% cash-on-cash return, fully managed and hands-off.

Key lessons

SA beats a standard let

Operating as a premium serviced accommodation unit multiplied income versus a standard residential let. Premium features and design drove nightly rates and occupancy.

The investment case

Why investors like Heidelberg Road

Strong cash flow

A premium serviced accommodation unit delivers c.£24,000 net income a year — around £2,000 a month with strong nightly rates.

Value-add opportunity

Refurbishing and restyling created c.£40,000 of equity and lifted income well above a standard residential let.

High-demand location

Portsmouth's naval, NHS, university and leisure demand keeps occupancy high all year.

Professional management

Fully managed by Open Mind Property — pricing, guests, cleaning and maintenance handled end to end.

Long-term growth

Premium SA assets in supply-constrained city locations support long-term capital growth.

Asset-backed security

Backed by a real, refurbished bricks-and-mortar asset on the South Coast.

Why Open Mind Property

A track record investors trust

Heidelberg Road is one of 100+ projects we’ve sourced, transformed and managed across the South Coast.

100+
Properties managed
£35M+
Portfolio under management
7+ yrs
Property experience
SA
Serviced accommodation experts
HMO
HMO conversion specialists
Investor testimonials

What our investors say

★★★★★

“The communication is first-class. I get clear monthly figures and never have to chase — it genuinely is a hands-off investment.”

David R.
Private investor · Hampshire
★★★★★

“Returns have beaten what I was projecting. The hot-tub repositioning was a clever move and the occupancy speaks for itself.”

Priya S.
SA investor
★★★★★

“Professional from day one. They treat my capital like their own and the reporting is completely transparent.”

Mark T.
Portfolio investor
Investor FAQs

Your questions, answered

Entry typically starts from around £25,000–£50,000 depending on the structure, with larger JV and full-funding options available. We'll match the right opportunity to your budget on a call.

Heidelberg Road was bought with a mortgage: a £260,000 purchase (75% LTV) needing £108,000 of cash in total and producing £24,000 of net operating income a year. After mortgage interest, net cashflow is £11,325 a year — a 10.5% cash-on-cash return on the cash deployed — with £105,000 of equity held against a £300,000 valuation. Projections are conservative and shared in full before you commit; past performance is not a guarantee of future returns.

Every investment is asset-backed by real property, conservatively underwritten, fully insured, and professionally managed. We invest alongside our partners so our interests are aligned.

Options include refinance-and-hold, sale at stabilised value, or transfer of the operating agreement. We agree your preferred exit up front and build the plan around it.

You receive clear monthly statements covering occupancy, income and costs, plus direct access to the team whenever you need it.

Typically via a JV, loan or full-funding agreement, all solicitor-drafted with clear terms. We tailor the structure to your goals and tax position.

Register your interest

Speak to us about Heidelberg Road

Tell us a little about your goals and we’ll send the full breakdown — figures, structure, timeline and projected returns — and arrange a no-obligation call.

  • Full project breakdownDetailed financials and projections for Heidelberg Road.
  • 1-to-1 strategy callSpeak directly with the team — no pressure, no jargon.
  • Access to the investor networkBe first to see future South Coast opportunities.

We’ll reply within 2 business hours. We never share your details.

Ready to invest?

Build hands-off, asset-backed income with Heidelberg Road

Book a strategy call, message us on WhatsApp, or join our investor network for first access to South Coast opportunities.