21/09/2026
π¬ It was my first one so I'd forgive you for thinking it was...
A tired 3-bed terrace in need of full renovation:
π Bought: Β£89,000
π¨ Renovation plus buying fees: Β£40,000
π· Total spend: Β£129,000
π End value: Β£115,000
And it didn't all go to plan. We'd budgeted Β£30,000 for the renovation and fees.π€¦ββοΈCall it a Β£10,000 lesson...
β As a flip project:
A Β£14,000 loss (before selling costs). Most people would call it a terrible flip... and they'd be right π
β
As a long-term rental:
Money in (deposit, renovation & fees): Β£62,250
Money back out at remortgage: Β£19,500
Money spent once all finished: Β£42,750
Rental profit as 4-bed HMO = Β£760pcm
That's 21% ROI π
The plan was always to convert to a 4-bed HMO and rent long term, not to sell.
The takeaway? π
β It's definitely not "an overbudget flip can always be saved by making it an HMO" (I wish it was that easy!)
β
It's to have a plan, and know your numbers before you buy π