In this, the second of my series of articles about HMO’s and Multi-Lets we’re looking at why you should – and in my humble opinion ‘MUST’ – be using HMO’s as a key part of your property strategy. The short answer is this: HMO’s create LIFE CHANGING income. I’m not talking about £50-£100 per month here and there, I’m talking about substantial income, about £1,000 – £2,000 per month CLEAR PROFIT on every property! Some of my HMO’s produce 20 times the profit of some of my single lets, and with that type of income, you only need 1 good HMO property to effectively retire! Let’s look a this is little closer – the average salary in the UK is around £22,000 a year, so if you have one HMO that cashflows £1,800 per month (for example), this is £21,600pa…which give or take the pennies equates to the average salary in the UK, on just one property! On top of that, using my Secret Strategies to literally make money out of thin air (which I’ll cover in a future article), you can easily add a further £4,600 on this same example property, pushing the income to £26,200, which is 20% more than the average UK salary! Not bad for one house! Now think of it in these terms, and I’m going to work to round numbers here, but if each HMO property makes you a clear £20,000 a year profit, how many do you need?….then how many do you want? The lifestyle that these properties can help you create is nothing short of astonishing. Imagine this, 3 HMO’s, £60,000 a year income, working literally a couple of hours a week. Think about what you’d do when you not only have the income, but you also have your time back! I can honestly say that my life has changed since I did my first HMO and I’ve never looked back. Yes, I’ve made some mistakes and yes I’ve worked hard to make my model better and better over the years – it used to ‘only’ be £1,000 profit, per property, per month! – but now each HMO I buy will deliver me around £20,000 a year profit. So, now you know ‘why’ you want to do HMO’s! – because of the lifestyle, family time, holidays and quality of life you can achieve with literally just one or two properties. I’ll be talking more abut the different types/markets of HMO’s in my next article.
