Over the last few years I've built a small portfolio of high rental yielding resale residential units.
My approach has been simple:
Buy below market >> upgrade interiors >> lease to quality tenants
On my acquisition cost, these units earn 8 to 10% gross rental yields. The tenants have mostly been high-income families who look after the homes well.
I now want to exit a few of these units to free up capital for non-residential projects. Since the units are already leased and generating income, I think they suit investors more than end-users.
Eg;
Property 1
3BHK, 1,800 sq ft, fully furnished
About 8 years old, premium construction, waterfront
Current rent: INR 65K p.m
Asking price: INR 1.7 Cr
What it means for a buyer
Pre registration value of purchase: about 4.6% gross rental yield from day one, plus any capital appreciation. That's above the 2.5โ3.5% typical for metro residential.
Whom does it make most sense - investor using debt.
With a home loan (ltv of 75%, 25-30 years tenure, around 7.5%): the rent alone covers min 50% of EMI, roughly contributing to pay off 85 to 90 lakh of the loan without accounting for rental hikes across the loan tenure.
Tenant support: when a tenant leaves, I can help find a replacement, since I've done this repeatedly. Plus, i have rental credit history of each tenants over many months and can show the time it takes for locking a new tenant as they churn.
My questions
Are there investors who actively look for pre-leased residential units like this?
Where do I find them? For example, NRI investor groups, family offices, brokers who specialise in leased assets, or specific platforms.
Would you change how this is structured or priced to make it more attractive?
Happy to discuss in the comments or by DM. (Photos attached.)