Creative Ways to Add Bedrooms, Bathrooms & Create Real Estate Value
Our goal as real estate investors is to create value. I want to share some ideas that myself and my JV partners do to create additional value in our real estate deals to make more money for ourselves and investors.
Loft Conversions in HMOs
Adding a loft basically gives you an additional bedroom in your HMO. This is a common scenario that large families do and children love living there. Can you imagine the added income an additional En suite can bring in with a loft in your HMO. It all comes down to math. More so depends on your area. The better the area, the greater the value of putting in a loft for your HMO. The areas in which we operate an en suite rents for approx 475 a month upwards to 595 ( considering a high finish). Lets take an average of 500 a month for a HMO. This comes to 6,000 per year additional rent on your HMO. Imagine you hold the HMO for 10 years, you just created an additional 60,000. Weigh this against the cost….You just created a great deal of value on your HMO!
Making a Half Bath Whole and Adding Bathrooms in HMOs
Some half bathrooms are really small, and there’s just nothing you can do. But if there is extra space, it’s a good idea to finish it. That expense will almost always pay for itself. There are studies that a bathroom adds 24 percent to the price, whereas a half bathroom only adds 15 percent. Stand-up showers just don’t take up that much space. Considering making your bathrooms beautiful. A beautiful bathroom and kitchen are one of the reasons people will rent from you. We do our bathrooms to a wow standard. This makes more money for us and our investors in our HMOs.
If you have any questions…please feel free to ask…
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