For those of you that are regular readers of my blog, you may remember me telling you recently about one of my HMO projects in Huddersfield? I’m pleased to say that the massive refurb (converting from a large 4 bed house to an 8 bed HMO including creating 2 bedrooms and a bathroom in the cellar) is now complete and tenants will be moving in over the next couple of weeks. It’s a cracker, my investor will get ALL of his £180k investment back, once we refinance, and we will have an income, for life, of at least £800 net per month EACH….from one property!
I can now tell you about another one I recently bought with a different investor. This one is in a place called Wallasey near Liverpool and here the target market is professionals rather than students. It wasn’t easy getting the purchase over the line to say the least. It was an auction property and so we legally had to complete within 28 days. Typically, day 28 fell on the exact day that I was travelling back from a speaker training course in Florida (I’m also a property trainer). Some of the documents needed for completion were late and so the solicitor called me very early before my flight that morning in a state of panic as we could be sued if we didn’t complete that day. Argh! We too-ed and fro-ed on email for a while and then I had to leave them to it while I boarded my flight and just prayed that by the time I landed we had completed. As I got off the plane at Heathrow I turned on my phone and was VERY relieved to see an email confirming completion, phew! Nothing is ever plain sailing in the world of property!
So my latest one is a large 4 bed Victorian property, in a dreadful state, which we are turning into a high end 7 bed HMO. Builders arrived on site last weekend with a 12 week schedule to complete. Lots to do in a relatively short timescale which is how I like it. We need to get the property cashflowing asap. So, the investor has put in around £160-£170k and should get most, if not all, of that back following the refinance (we refinance onto a commercial mortgage rather than a buy to let to get the higher valuation). The property will then generate us both around £550-600 NET per month each. Nice!
If you’d like to know more about this or any other property investment strategy then please do get in touch. I’m always more than happy to go for a coffee to chat through your plans or ideas and will always help you where I can.