Professional HMO Valuations Stacking Up
Contrary to many course sellers, can tell you first hand many times you might not be able to get all or even part of your money out. Every bank valuates HMOs differently…there are many variables…Some of these variables consist of HMO experience, location, article 4, HMO license or there lack of.
I will give an example, we are conveying tomorrow on a 5 bed professional HMO which generates gross 31,200 which had a commercial valuation of 195,000 ( we sold at 198,000) to an experienced HMO landlord. What is interesting, is that a 4 bed Professional HMO being purchased by a “new” Professional HMO landlord ( even though he has extensive buy to let experience) within 1/2 mile away was only valued around the 100k range. Generating approx 25,000 per year in gross rents…Go figure!
What we have seen in many cases that the investors either decide not to purchase or put money in the deal.
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