HMO Real Estate Investment Manchester 2 Skids of Rubbish
We all know that HMOs should be the most profitable real estate investment in the UK. However too many times investors do not look at the net numbers or get carried away from a wonderful new build off plan. Investing in HMOs like we do we get our hands very dirty. In this project we got our hands VERY dirty. Our work is not sexy. What it is though is profitable when we add rooms from 2nd reception rooms or add windows if we have large upstairs bedrooms. Our goal is to maximize the number of bedrooms and keep them legally compliant. Each bedroom must be 6.5 square meters. We have learned to move around bathrooms….create hallways. Every project we learn. It is never easy in HMO real estate investing.
We just started a our new HMO Project in Manchester and wow did we have to clean out alot of rubbish. We had a full weekend of rubbish removal. Issues like this when you refurbish HMOs take time and extra money. You need to count all of this in when you are budgeting for your HMO project. Most people only look at the gross numbers. They forget to realize voids cost extra money…management costs money….extra skids of rubbish cost extra money. It took us a full 2 days to clean out this house before we could start working on it. We always figure in an additional 20% when we refurbish our HMOs. Currently we have 6 HMO conversions going on at the same time. Our goal is to have at least 4 of these HMOs finished before Christmas and turned over to for Social Housing. This way they will be cash flowing for us. Our model is to source…tenant…and sell some….We do not have voids…virtually no maintenance…This allows us to focus on finding more HMOs to convert into social housing…
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