One of the advantages of working closely with large scale developers in the Croydon area means I get to spot things that the average on looker may miss out on. This is a prime example. A landlord we have been working with actually bought this one to my attention! I last showed him how to turn a 5 bedroom, 3 story property into an 8 bedroom HMO. He now makes a very nice chunk of change on that one so wanted my advice on this one. It’s so good I just had to share it with you all!
It’s listed as a 3 bedroom house, in South Croydon (bells should be ringing, its a great area, right next to Purley Oaks and Sanderstead Station – both have fast and direct links to London and East Croydon) by Paul Meakin Estate Agents.
Now in all honesty, I actually know a clever way of turning this into a 6 bed HMO with a mind boggling 9.77% Yield, but that’s only for those who call me to find out! For the rest of you, this should be a very simple conversion into a 5 bedroom.
Having a look at the floor plans, you will simply need to add an extended corridor (cutting out a small section of the Reception Room) so there is a separate entrance to the Dining Room. The dining room will become a Bedroom 4, and the Reception Room will become Bedroom 5. That’s the best part of £500 work and 1 day and you increased the income of this asset by £1000 – £1200 per month.
You will obviously need all the additional HMO bits and bobs like fire doors, smoke alarms, LICENCING etc…
Absolute minimum values – you can achieve a lot more than this, but better safe than sorry:
Bed 1: £575pm
Bed 2: £575pm
Bed 3: £500pm
Bed 4: £575pm
Bed 5: £575pm
Total Rent: £2800
Purchase Price: £430,000
If you would like further advice on how this could work, and how I have worked out a way to get over 9% Yield on this property, please do give me a call or visit my office: 0203 761 4332.