How to make a Fortune – From a rotten House to a great HMO

By | 20 November, 2017

How to make a fortune creating a HMO from a Rotten House

If you own a big house and want to really increase your rental income today, start thinking about HMO. Having a large property means you have much more rooms than what you think. What are you waiting for? Create extra rooms and increase your rent by using HMO strategy.

Probate

Lisa inherited a three bedroom Victorian house from her grandmother and now she is a bit confused about what to do. Having no experience in the field, and with the house in very bad condition, she let the time go by and left the house empty, making no profit at all. Actually her asset became a liability, because she still had overheads to pay e.g. service charge and council tax.

Eventually she decided to seek help. We helped her to refurbish the property, converting it into a 5 bedroom HMO.

Here is the floor plan:

                          BEFORE                                                                                            AFTER                      

             Screen Shot 2016-07-06 at 02.22.13                         Screen Shot 2016-07-06 at 02.22.30

 

Lisa now has a property which makes £2364 passive income per calendar month.

 

5 BEDROOMS HMO 1 Month 1 Year 5 Years
Rent Room 1 £550 £6,600 £33,000
Rent Room 2 £550 £6,600 £33,000
Rent Room 3 £550 £6,600 £33,000
Rent Room 4 £605 £7,260 £36,300
Rent Room 5 £700 £8,400 £42,000
Maintenance £100 £1,200 £6,000
Voids £70 £840 £4,200
Agency Fees £0 £0 £0
Bills £250 £3,000 £15,000
HMO Licence £50 £600 £3,000
Fire Requirement £50 £600 £600
Certificates £13 £150 £750
Refurbishment £58 £700 £3,500
Goss Income £2,364 £28,370 £111,388

In just three weeks – spending only £3500 – Lisa went from an empty and ruined property to a five bedroom HMO, making £2364 pcm.

Considering that the house was owned with no outstanding mortgage, she recovered the cost of investment within three months of the day she made the decision to go for it.

By adding an extra wall and furnishing all the rooms, she raised the cost slightly, but maximised her passive income.

Incrent uses a strategy that can literally Increase Your Rental Income from a single property.

 

If you wish to have more details about what we do and how we do it, fill out the contact form,                       

Click HERE and we will get back to you shortly.

Our first valuation is completely free. If you don’t like the deal we offer, you have no obligations towards us.

 


Alessio Tondo & Fabio Tarantino
Two ordinary guys who turned their passion into a business.
Co-Founded INCRENT
Rent 2 Rent specialists, London
Focused on how to Increase Your Rental Income.

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2 thoughts on “How to make a Fortune – From a rotten House to a great HMO

  1. Marta Post author

    I had a similar situation a couple of years ago and managed to let it out as single let, and I am making decent money. Not sure I would like to spend time and effort to do like you say…. do you think it is really worth it?????

    Reply
    1. admin Post author

      Dear Marta, we really appreciate that you shared with us your point of view. We are happy to prove that the Multi-Let strategy works and you can outsource it to the expert without having the hassle to manage the property yourself. Booking a free evaluation could perhaps increase your rental income and it will cost you no money. Contact us with no obligation.

      Reply

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