HMO conversion fetching 12.9% ROI
We helped our client with the conversion of ‘Linden’ – a 4 bed 1 bath semi-detached house to 6 bed 2 bath with kitchen/diner upgrade.
Purchase price: £250k
Deposit to purchase: £62,500
Purchasing costs: £7354
Conversion: £34k
Furnishing: £3500
Total cash invested: £37,500
Monthly rent: £2945
ROI (net rent/cash in): 12.9%
Who
Husband and wife wanted their first HMO. Husband is an IT Professional and the wife runs a boutique. They had a small buy-to-let portfolio but now wanted something with more cash flow.
Where
Location – Reading. Close to transport links, industrial parks, town centre.
What
Linden – A 4 bed 1 bath semi-detached house > 6 bed 2 bath with kitchen/diner upgrade
Floorplan – before
Floorplan – after
Conversion highlights
- Moved wall between study and Living room
- Replaced kitchen with smaller kitchen to give more living space
- Made a new shower room
- Moved walls to ensure both rooms (1 & 4) are doubles
- Made a new shower room
- Moved wall to ensure both rooms 2 & 4 were ‘doubles’
Key learnings
Layout
You can work quickly with plasterboard to make all rooms double and add bathrooms
Living/Communal area
A sofa, dining table & TV help create a healthy communal environment
Create space
Ceiling high custom-built cupboards
Big Fridges
Shelves
Bedsteds, not divans
Spend a little extra on ‘The Finish’
Value adds
- En-suite adds £75-£100/month per room.
- Garage = £75/month rent.
- Invest in the garden
- Send cleaner once/month.
- Fair/Firm management of tenants.
WHY NESTINO PROPERTY INVESTMENT?
Built from the ground up for the new age property investor.
Nestino is a one stop shop that provides everything you need to shape up your property investment portfolio. With us, you can embark on a smarter and more rewarding property investment journey.
How can we help ?
Interested to know more?
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Fill in the form or send us a WhatsApp message on +44 7714 303914 with your inquiry.
