Case Studies

Beverley Road

HMO at Beverley Road, near the University of East Anglia

This property was bought from someone who had rented it out through Norwich City Council and the tenant didn’t want to leave. We had wanted to complete quickly on this project but the original 4-week schedule turned into 8 weeks.

Once we had access, we took out the old back boiler and converted the lounge area into a fourth bedroom. We created a communal space in the kitchen to compensate for the loss of the lounge. The kitchen units that had been removed from our Firs Road project were in good condition, so we used these units at Beverley Road.

We added new carpets, did electrical work, added gravel to the front drive and a little bit of turf to the back garden. As this property was intended for student accommodation we added furnishings to the rooms, new white goods in the kitchen, and wifi throughout.

Because of the 4-week delay, we were pushed for time to get students in before the start of the academic year but we managed to find a group of students to rent the property.

We sold the property to an overseas cash buyer with the students in-situ.

Financial Summary:

  • Purchase Price: £143,500
  • Refurbishment: £16,800
  • Legals & Other Costs: £10,280
  • Sold Price: £214,000
  • Profit: £43,420

Tip: With HMO projects you need to be aware that some mortgage companies will value the property on the basis of a normal house, rather than on the income potential, which can affect re-sales. This is why cash buyers are perfect – and you don’t get caught in a chain!