Greater Manchester HMO

£162,000
of £190k
 
85.26%
Funded
12 months
Project Length
16%
Projected Gross Yield
13%
Projected Net Dividend Yield
0
Days left to fund
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This opportunity is to raise £190,000 to purchase an existing residential house within the Salford-dominated city of Manchester and to refurbish it into a 5 to 6-bedroom HMO with En-Suites. Thereafter the HMO property will be put on rent for short term and sell as soon as possible. When the £190,000 has been raised, our partner, BH Property Investments will source a suitable property for conversion. Details of that property will then be circulated to investors who will then be given three working days to decide whether or not to proceed with their investment.

The returns quoted below are based on previous projects overseen as BH Property Investments. The actual returns generated by this investment opportunity may be lower or higher.

  • Period: 12 months (starting from the date of purchase to the estimated date of sale)
  • Estimated Gross Return on Investment (ROI): 16% 
  • Estimated Net Return on Investment post corporation tax (ROI): 13% 
  • Landdevelop Ltd have set up an SPV (Special Purpose Vehicle) to hold the property and investors will jointly own the entire equity interest in the SPV. 
  • Our partner, BH Property Investments will act as the management agent for the refurbishment of the property and will be responsible for sourcing, acquisition, conversion, renting, maintenance and sale of the property. 
  • From acquiring the property the conversion will start immediately and we expect it to run for 3 months. Thereafter the property will be fully let within one month, therefore the rental period in the first 12 months is 8 months. 
  • We project the annual rent to be £30,000, therefore the rental income is estimated to be£20,000 for 8 months. 
  • The SPV will pay investors an estimated interest of 5.5% per annum based on the total investment plus a 50% share of remaining net rental income and any gain on sale of the property


Conversion of Existing Residential Property into a 5-6 bedroom HMO  

Description:
  • Type: HMO 
  • Number of beds: 5-6 Bed 
  • Number of bathroom/Ensuites: 5-6
  • Purchase price: £120,000
  • Conversion costs and white goods: £55,000
  • Legal and other expenses: £14,000
  • Resale value: £230,000 
  • Expected investment term: 12 months
  • Estimated net return to investors: 13%
When the £190,000 has been raised, our partner, BH Property Investments will source a suitable property for conversion. Details of that property will then be circulated to investors who will then be given three working days to decide whether or not to proceed with their investment.

Please note that the images are of a previous project overseen by BH Property Investments.
  • Greater Manchester is home to nearly 3 million people, it stretches from the Lancashire moors in the north, to Cheshire farmlands in the south, from the Merseyside border in the west, to the Yorkshire dales in the east. It's made up of ten council areas: Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan. 
  • Art, tourism, culture and sport provide 16% of employment in Greater Manchester. 
  • Manchester airport is the third busiest in the UK 
  • Football brought in around £330 million worth of economic benefit to the area.  
  • It is the only place in the UK to have a fully orbital motorway, the M60, which passes through eight of the boroughs. 
  • There are 98 train stations. Greater Manchester has six universities: the University of Manchester, Manchester Metropolitan University, the University of Salford, the University of Bolton, The University of Law and The University of Huddersfield Oldham Campus.


  • BH Property investments sources and converts properties into high end professional HMO in the Greater Manchester area. 
  • They target young professionals in the more affluent areas of Manchester. By preparing the units to high standards, it attracts higher calibre of tenants and they tend to stay longer. They create HMO properties that generate higher net returns. 
  • BH property services mean little or no involvement required from the investors. 
  • They have extensive experience in the Manchester investment property marketplace and are qualified to provide high yielding investment properties for themselves and to their clients.

Ruti Abraham

Investment & Development

Ruti has a wealth of experience in HMO investments and below market properties. Generally known as HMO Expert. She has a track record in helping client build HMO portfolios. She has been involved in properties since 1994.

Shneur Kramer

Construction & Management

Shneur has huge experience of leading HMO projects. He is currently managing rental portfolio for his clients. He assists in sourcing the below market properties and manages the refurbishment for the properties to be suitable for rental. Since 1998, he has built a large portfolio of HMO properties and over the years has been managing everything in house.

Supporting Documents

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