Our Regret Selling Salford HMO UK Property
About 8 months ago we sold a HMO property in Salford to an investor. My colleagues did not want to sell this HMO property as it was extremely profitable. We were all in for 65,000 including full refurb. This property was sold for 99,000. Now this same property is worth in the area 120,000-125,000.
We had in place a 5 year guaranteed contract with the contract holder for the Northwest supplier of social housing for the Home office. This property had no voids…no maintenance and no management. We were Netting 12,480 a year. The only reason we thought to sell was that we could recycle our money in another project in which we did.
We take our profits from one project and roll them into another HMO property or Conversion project. We keep some and sell some. Even though we made a very nice profit in just a couple of months….being patient we would have made much more.
Yesterday a property we liked came back on the market. We looked at it in December. Subsequently sold very quickly, however fell through yesterday. Has planning permission. It is a office warehouse currently and has planning for 6 townhouses/bungalows.
Maybe this could be of interest to someone on the group?
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