You have to love this question posed by an investor this morning. He viewed one of our professional HMOs and loved it. More so this London investor loved the rents we were generating on this professional HMO. Actually 4 en suites in Salford generating from a low side of 105 to 120 per week. Then he made a phone call this morning and stated….he is very interested and wanted to make an offer… He offered 100,000 for a 4 bed ensuite in Salford generating close to 23,000 per annum. I had to chuckle….I told him it costs us more than that. He said, no it didn’t as he said it cost 86,000….I had to laugh even more. I said, we purchased it at the price…plus SDLT and had to bring it back to the brick and all the refurbishment cost close to 50,000 to make the ensuites & furnishings….I asked him if he can find a finished cash flowing Professional HMO in Salford for 86,000?
Clearly no….Sourcing takes time and money….Refurbishment takes time…patience and money…Just love investors who think it is easy….BTW had another investor from China who was looking for a sourcing agent and to manage a refurb…..I asked where they were located…Answer – Hong Kong….my answer…it will be rather difficult to say the least…
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