Before
After
€140k
Total Invested
~27%
Annual Return
€19k
Annual Rental
~€220k
Est. Exit Value
4 years
Hold Period
Via Tuscolana runs through Municipio VII, one of Rome's most established residential corridors, connecting San Giovanni to the Appio-Latino district with direct Metro A access and 12 minutes to Roma Termini. Demand for short-term accommodation in this catchment is structural and year-round, driven by domestic and international tourism. The unit we acquired is a 55 sqm apartment that had been left in near-derelict condition by the previous owner: the kitchen had been stripped out, both bathrooms were non-functional, the electrical system was outdated and not certifiable, and the plumbing required a complete overhaul. The building itself was structurally sound, a pre-war palazzina in a well-connected residential block, but the unit's condition had suppressed its value well below area comparables, creating a clear acquisition opportunity for an operator with renovation capability.
Investment Strategy
We acquired the unit at €70,000, well below area comparables given its condition. A further €70,000 funded a full hospitality-grade renovation: new kitchen and two bathrooms, complete electrical and plumbing overhaul, A/C installation, new flooring, and full furniture fit-out. Total capital deployed: €140,000.
The unit went live on Airbnb and Booking.com within 5 months, generating €19,000 gross rental income per year, a 13.6% cash-on-cash yield on deployed capital. Our base case is a 4-year hold: over that period, cumulative rental income reaches €76,000 (4 × €19k). At exit, current comps in the Tuscolano corridor support a resale value of approximately €195,000, rising to ~€220,000 with conservative 3% annual appreciation applied over 4 years, a capital gain of approximately €80,000. Combined, rental income plus capital gain returns ~€156,000 on €140,000 invested: a blended annual return of approximately 27%.
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