It is December but we are still pushing to get this 5 bed social hmo property in Manchester completed before Christmas. This property needs a great deal of work. As in many other HMO properties we have refurbished in Manchester we bring the property back to the brick. Bringing it back to the brick is virtually making the HMO property a brand new property. New electrics….new plumbing …new heating…This Social HMO property has to go through a myriad of inspections and checks. Recently had an investor who expressed an interest in buying one of these Social HMOs, however his true motivation was to simply learn and do himself. That is fine, however it has taken us a long time in order to understand all the checks and inspections we must pass in order to have the HMO property cash flow. Some have succeeded….most have failed and lost money.
The same we had with a professional HMO with a gentleman from China. He viewed one of ours that we have put up for sale with the sole intention of sourcing, refurbishing, tenanting on his own….Our simple reply…good luck…we have seen this story numerous times. By the time, if he actually does get the property refurbished timely and quality wise….it is a whole new ball game managing the tenants…or even filling the property. Management is the key with Professional HMOs. With the social HMOs the huge benefit is there is no management…no voids…and maintenance is covered up to 5,000 per year. Property is not easy…you will always have surprises with refurbishment….you will have surprises with the people you work with….managing tenants takes constant supervision. However, with property people have to live. In today’s crazy world…High yielding HMO properties we feel our one of the best ways to protect and grow wealth.
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