Case
Studies

Bath Street HMO

Project Details

Investment Opportunity: Medium House In Multiple Occupation (HMO) Conversion

Location: Bath Street, Huddersfield, West Yorkshire

Bedrooms: 7

Background

This large single dwelling property is located in the town centre of Huddersfield which lies halfway between Leeds and Manchester. Huddersfield railway station is just 0.3 miles from the property, with links to Leeds taking just 22 minutes. The town of Huddersfield itself is home to a growing university with an increasing number of international students. In addition, it is a great town for young professionals looking for an affordable place to live.

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In a very popular area for students our strategy was to purchase the property through a joint venture including Modus Portfolio Ltd and other private investors. After purchase we planned to change the use of the property from a large single dwelling and convert to a 7-bed self-contained student House of Multiple Occupation (HMO). This would provide a significant increase in the property value to allow refinancing and repayment of investors loans with interest.

The property required a major programme of refurbishment and renovation works in order to convert it to an HMO. This included converting all floors of the property, the attic space and basement areas to provide 7 bedrooms each with a sitting area, kitchen, WC and shower room facilities. An extension was also built to provide a sitting area for one of the rooms, whilst external stairs were installed to provide access to the basement rooms.

The refurbishment took 6 months and the property was granted an HMO license by the local authority shortly afterwards. The property now generates a high monthly rental income of £3,750 and monthly cash-flow after costs of £3,488.

Financial Overview
Purchase Price	£160,000
Purchase Costs	£12,000
Cost of Refurbishment	£88,000
Total capital outlay	£260,000

Monthly rental income	£3,750
Monthly costs	£262
Monthly cash flow	£3,488