352: Discovering a £600/month addition to our latest HMO project

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In today’s episode I’m sharing our second update from IPI Washway, one of our own projects to convert an office building into a 7 bedroom HMO in an article 4 area.  I’m joined again by Will who’s our new project manager. He started working for us officially about 3 months ago with no previous property experience, so whilst we’ve thrown him in at the deep end, what we’re hoping to show with this series is that anyone, including you, can get involved in great projects like this without a ton of past experience. Sure, you might need some support and guidance along the way like Will’s getting from me, but that’s exactly what our Inside HMO Investing programme offers.

Listen to this episode below:

Here’s what we discussed this time:

Last month in the first episode of the IPI Washway series, Will and I discussed the purchase process for this building, finding it listed in an upcoming auction and how we secured it before anyone else got a chance to bid. We also looked at the deal analysis we went through to understand if the numbers made sense, and we started to discuss the planning process as well, particularly around what you need to consider if you’re looking to invest in an article 4 area where the usual permitted development rights are removed.

This month, we’re looking at the next stages of the project and specifically what Will’s been focussing on, including the strip out of the building, what that uncovered and why we like to get it done as soon as possible after the purchase completes; the delays we’ve experienced so far with the planning application, in part due to changes we made to our original plans that will increase the profitability of the house, and in part due to objections from neighbours; and finally the start of the tender process including what we’re overlapping with the planning application to condense the overall programme, and what Will’s doing to ensure the quotes we get from contractors are as accurate as possible.

If all of this talk about permitted development, article 4 directives and deal analysis is leaving you scratching your head then don’t worry, we’ve got a comprehensive free introduction to HMO investing that brings you up to speed on all of the important HMO terminology, as well as the different types of HMO projects you might consider and some project case studies to show you what’s possible with this strategy. You can download it for free at insidepropertyinvesting.com/HMO.

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The Links We Mentioned:

Our free introductory guide to HMO Investing

Inside HMO Investing 2021 Waitlist

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