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Showing results for tags 'hmo?'.
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Hi everyone, I've got a few single lets where we've used the BRRR strategy and am now venturing out to my first HMO - however I'm struggling to assess whether it is a good deal! We've agreed a purchase on 3 bed terrace in the NW and we are looking to convert it to a 5 bed all ensuite. We know there is demand in the area we are looking at and are quiet confident that the rooms will be filled. The 'return on money left in' the deal once refinanced is suitable for what we are after and gives a reasonable cashflow. However, the biggest stumbling block for me is that the purchase price + fees + refurbishment cost is a fair amount greater than what the property will be valued at once the works are complete. What this effectively means, if we were to sell the property after the works we will lose money. The intention is not to sell. However, when we analyse our single lets one of our exit options is that we don't lose money if we had to sell the property after completion of works. This exit option wouldn't exist here due to the larger refurb cost associated with the HMO. I just wanted people's views on this - is this fairly common for those that have created their own HMOs? Thanks Jitsy
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G'day everyone I am currently looking at the possibility of buying a 2 bed house and turning it into 2 self contained units, 1 unit downstairs and 1 unit upstairs. Each unit would have an open plan room containing a bedroom/living room and kitchen, this would all be one room. The bathroom would be in a separate room. My initial thoughts are that the stairs would need moving and new windows installed plus many other building works which I am not yet aware of. I anticipate moving a few stud walls but no external brick walls. So my questions: What are the room size regulations? Will this fall under HMO regulations? Is planning permission required for the vague works proposed? Would the new works be mortgage able? What else have I missed? Many thanks Dan
