Stacking an HMO Deal for Your Investors - What You Need to Know

Property Sourcing Profits Podcast

HMO properties are a great way to add value for your investors and in this episode, David shares some great tips and advice on how to successfully source and create HMO’s for your investors.

The key is the floor plan, viewing and deciding on the model you are going to use along with having a good builder to make the changes needed.

This is a great opportunity to help anyone consider what’s the best model for them and their investors and how to go about creating an HMO that will bring the returns you want.

KEY TAKEAWAYS

• Start with the floor plans and viewing to decide if the property is a possibility as an HMO.
• If you are going to make significant changes you don’t need to worry about the condition of the property.
• Decide what HMO model you are going to use is it the shared facilities model or the full ensuite model
• Five bedrooms usually require an HMO licence.
• With the ensuite model, you are creating high-quality rooms in the right location and gaining the best level of returns.
• A typical ensuite model refurbishment project will require a budget of around

£10-12 thousand per room.

• The multi-let model can be completed for less money.
• With the ensuite model, it’s likely that you can achieve a 20-30% return on capital.
• The location is key as this will determine rental returns.
• Having a good builder is vital and a recommendation is the best way to achieve this.

BEST MOMENTS

‘HMO properties are a great way to add value for your investors

‘By reconfiguring you can lift the rent roll’

‘The multi-let model can be completed for less money’

VALUABLE RESOURCES

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

ABOUT THE HOST

David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004.

In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him, and he enjoys empowering other landlords by sharing the knowledge he has gained.

The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours.

CONTACT METHOD

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/