This project was unusual for us, as it was acquired as a buy to let. It’s a three-bedroom terrace located in a growth area of Bristol that we secured at well below its market value, with the intention of turning it into an HMO. However, we decided to do a deal with the tenants whereby we would put in a new bathroom and replace the flooring if they agreed a rent increase of £300 a month.
We refinanced the property and managed to pull out all but £17,000 of our capital, so we’re getting a solid ROI of 15% with very few management hassles. The plan is to hold it for the next five years and then we’ll assess whether to sell or keep it.