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Renting big properties in socially deprived areas - would you do it?

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I'm considering (long-term) investing in a large terraced property with potential for either 5 separate flats with circa £25k rental income/annum (3 x 1 bed circa 32m2 and 2 x studio circa 21m2) or a 7 large double bedroom HMO (each bedroom at least 4x3m + ensuite) with circa £30k rental income/annum. 

The area is currently quite socially deprived and has a number of nearby bedsits/HMOs. The street doesn't have a great reputation, however the rooms are big, the property is within 3-400m of the town train station, within 600m of a planned development (which will include cinema,  a new multi-purpose venue, commercial outlet, restaurants, and innovation centre, hotel and a wide range of housing) and 1km from the town centre.

Would you do it or search for smaller/higher priced properties in better areas within the Town? Any advice? Thanks! 

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Tough to answer without knowing the area you are talking about. I haven't invested in HMOs before but based on what you say what sort of tenant profile is likely going to want to live here and is this something you are comfortable with?

From a single let perspective it is said you should aim for properties that are 3-4 out of 10, 1 being the bronx and 10 being manhattan. I am not sure if this fits for HMOs though.

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk



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I wowuld be surprised if you got planning for flats as, in my area. the council does lots of checking and has strict conditions around flat conversions - fire escapes, parking and all that. In the old days a HMO would be the way to go but now that even they need planning, its going to mean more work/cost but do-able if the numbers stack up.

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