17/03/2026
This one is exactly why we focus on bigger HMO conversions. Project Long was not a light refurb it was a full back to brick job from day one, and the numbers reflect that
We bought the property for £170,000, spent £165,000 on the refurbishment, and roughly £20,000 on buying costs. That put us all in at around £355,000
The end value came back at £500,000, which leaves roughly £145,000 created in uplift but that uplift did not come from just buying well. It came from the strategy
The goal was to take a standard semi detached house and push it as far as we could in terms of layout and permitted development. We turned it into a 6 bed HMO, with 5 of those rooms as studios and 1 as an ensuite. That is a completely different product to what was there before
This is where most people get it wrong. They focus on adding bedrooms. Where as we focus on how each room performs. A standard room might achieve £500 to £600 a month but a well designed studio in the right area can push £800 plus. When you build a property around that thinking, everything changes
Once you multiply that rental income across the whole property, the valuation shifts that is because commercial valuations are driven by income, not just comparable sales
That said, this type of project is not easy spending £165,000 on a refurb means full strip out, structural work, reconfiguring the layout, often adding space through loft conversions or extensions, and making sure everything is fully compliant with HMO standards. On top of that, the finish has to be strong enough to attract better tenants and justify higher rents
This is not a paint and carpet job it is a full scale development
So why take it on?
Because of what it allows you to do at the end. If you hit your valuation, you are in a position to refinance, pull a large chunk of your money back out, and still hold a strong cash flowing asset
That is the game recycle the cash and keep the asset
Anyone can buy a standard buy to let and hope it goes up in value over time
But if you actually want to scale, you need to manufacture your own equity. That means taking on bigger projects, dealing with more moving parts, and accepting more risk
But with that comes a completely different level of upside
