Just One Professional HMO in Salford Generates £31,200 Gross Income Per Year

How many Professional HMOs would you need if you can generate £ 31,200 gross income per year. Two would be nice. Maybe 5 Professional HMOs?

It is truly possible. However there are always expenses such as mortgage payments ( if you need finance). You can mitigate some of these expenses by refurbishing to a high standard…..preparing en suites so the tenants feel they are living in their own flats ( Yet saving alot of the expenses)…Have responsive management to deal with any and all issues. It all takes work however. Can not compare to typical buy to let investment properties.

There are many that are afraid of professional HMOs. There is concern in Manchester next year there will be mandatory licensing. I personally do not think this will be an issue as long as you adhere to building regs and fire regs. Licensing will weed out the bad landlords and raise the standards of Professional HMOs in Greater Manchester.

 

Ways Professional HMOs Make You Money

I love Professional HMOs because they make money:

  1. Cash Flow: This is the amount of money that is left after ALL expenses and the mortgage payment are covered.
  2. Appreciation: this is the difference between what you bought the property for and what you sell it for (minus expenses).
  3. Loan Reduction (aka “Amortization”): The amount by which your tenants paid down your mortgage balance.
  4. Sponsor Fees: If you’re going to raise money for the deal (which you should!), then you are entitled to certain fees for “syndicating” the deal.