Usually the month of August is a slow month. Solicitors are on holiday as well as builders. Currently we have 2 Social Housing HMOs near completion end of next week. Plus starting a Professional HMO in Swinton, Manchester. The social housing once passing inspection each will cash flow at around 10,000 – 11,950 per year. We sell some in order to keep more of these ourselves. The key point of successful real estate is management. Since we do not have management with these we can focus on sourcing more deals and managing the refurbishments.
These social housing units are put on a 5 year contract in which we have no management…no voids and maintenance is covered up to 5,000 per year. These are great but we do not want to put all of our eggs in one basket. That is why on Monday starting a Professional HMO in a great area of Greater Salford. We will probably look to sell this property once refurbished and tenanted. We have a management company in place and will be an easy transition. There is high demand in the area and by putting in en suites we should be able to generate a little more income and tenants should stay longer.
Going back to the social hmos…I have attached some refurbishment pictures.
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