Investing in property can be a rollercoaster of challenges and rewards, and our first investment in Warrington was no exception! Thanks to my partner's local connections—her family being from Warrington—we were able to spot an incredible opportunity.

One evening, while browsing Rightmove, she came across a 4-bedroom HMO listed at just £80,000. Recognizing the potential, we pursued it at auction and managed to secure it for £83,000.

In addition to the purchase price, we incurred several essential costs:

Although these added to the initial outlay, the deal was well worth it. The property was part of a portfolio being liquidated by a company going out of business, which created an opportunity for us to secure the HMO at a bargain price.

When we took over the property, two rooms were empty, and one former tenant expressed interest in returning after spending some time abroad. However, rents hadn’t been reviewed or increased in years, leaving plenty of scope for optimization.

We quickly got to work:

Fast forward to 2024, and the property's value has significantly increased (exact figure to be confirmed). A local property agent, who once rented a room in the house, was astonished at the price we paid for the property.

Securing a mortgage wasn’t straightforward. The property's location, with several commercial properties nearby, led one lender to issue a nil valuation. However, with the help of a skilled mortgage advisor, we found a specialist lender willing to provide a 5-year interest-only mortgage.

This investment taught us valuable lessons about navigating auctions, managing HMOs, and overcoming financing challenges. Looking ahead, we’re exploring ways to improve the property further:

This first HMO investment has been an exciting journey, and we’re looking forward to growing our portfolio in Warrington and beyond.