When we purchased our first House in Multiple Occupation (HMO) in 2021, we had no idea the twists and turns we’d encounter. What could have been a straightforward deal became a test of adaptability and perseverance. However, the outcome—a thriving 6-bed HMO—proved that persistence and preparation can turn challenges into success.

Our initial plan was to purchase a property in Bury through a joint venture (JV) partnership. However, as we progressed, it became clear that the partnership wasn’t going to work. While I was disappointed, I stayed focused on the bigger picture for the company. Sometimes in life, things don’t work out, and that’s okay. For us, it’s never just about securing a deal—it’s about securing the right deal that aligns with our goals and values.

We backed out of the partnership and began searching for opportunities on our own. We soon found a promising property and had our offer accepted, but just as we were finalizing details, the seller sold to a higher bidder. Frustrated but determined, we revisited a property we’d been tracking on Rightmove. It was a 4-bedroom house with an attached shop that had come back on the market after the previous buyer’s funds fell through during the first lockdown.

The property presented its own challenges. Located in an Article 4 area, we needed special planning permission to convert it into an HMO. Additionally, it had a restrictive covenant, which deterred other potential buyers.

We weren’t discouraged. After consulting with our solicitor, Mark Knights at ET Law—who has been a trusted advisor since day one—we secured insurance to cover the risks associated with the covenant. Confident in our due diligence, we made a below-market-value offer through the iam-sold.co.uk modern auction platform, which was accepted.

To ensure the project’s success, we immediately:

Completing this project while working a full-time job was tough. To complicate matters, we faced challenges with the electricians. The builder-recommended electrician didn’t meet expectations, and we had to terminate the contract. This was extremely difficult, as we then had to re-check a lot of the electrical work, re-do some of it, and even re-decorate areas to fix issues.

Despite the setbacks, the property was transformed into a fully compliant HMO. We worked closely with the council and our architect to ensure all fire safety regulations were met, including the installation of fire doors, smoke alarms, and emergency lighting. We also added a smart heating system, Time o Stat, which allows tenants to manage heating efficiently while giving us remote control for optimal energy use.

The project took six months to complete, and the property was quickly tenanted.

This substantial uplift in value reflects the quality of the work and the potential we saw in the property despite its challenges.

Today, this property remains in our portfolio, generating consistent rental income and serving as a testament to our ability to navigate challenges and succeed in property investment.

Have you faced similar challenges when investing in property? We’d love to hear your stories and tips!

Follow our journey for more insights and advice, or reach out—we’re always happy to share our experiences and help others succeed.