I’m in love with your house Mark! Please do a video on your own home and run some numbers in the studio on the white board. I think that would be interesting for your viewers and give them some inspiration to how you ended up living in that beautiful house. Cheers
You have no idea how many people are asking for a house tour. My wife wants me to keep some parts of our life a little bit private such as Kids Schools etc But yes, I have convinced her to let me do a mini tour, not quite all areas but most!
I didn’t realise the HMO license was as cheap as that I assumed it would be so much more, which is one of the main reasons I’d not really properly considered one before. Won’t be so put off of it now! Thanks Mark :)
Yep, its not expensive, I would check with your local authority as each have different rules and regulations as well as costs but ultimately they are all affordable :)
Hi Mark, really enjoying the content and so glad I came across your channel early, just how in-depth you go with the figures. Unlike anyone else on here!! Have found out that to do a BRRR HMO you cant use a BTL mortgage to purchase and then refurb it as this is mortgage fraud. I'm 20 so it's hard to get the full PP saved, and just wondering if the only way to purchase is through bridging or JV with somebody as saving up this kind of cash is tough.
Hi George, you could get a hmo mortgage and capital raise on that. You could also use bridging. I have done both of the above. If you would like for me to recommend a broker who could help with this please check my website and send an email :-)
Great stuff Mark, really helpful seeing all the numbers, Any chance of doing a video about how you should pick an investment area, Why some places work for HMOS and others don’t, that kind of thing Keep it up , and the videos coming
I didn't realise 6 bed HMOs had such a good return on a like for like basis. Definitely aiming for this. Wary of most lenders wanting you to have landlord experience before getting a HMOs though.
Yes they do, but at the same time when you started walking you didn’t get up and run a marathon. Lenders are protecting you, trust me they want to lend! Follow the path, make your next deal bigger than your last and you will scale with time :-)!
Great video Mark. Thanks for explaining the differences between a 4 bed and a 5 bed HMO. You mentioned refurbishing a 4 bed HMO then refinancing to get most of your money out. Do you buy using cash then refurbish? Also I was lead to believe that lenders only release funds to go towards another house purchase via a solicitor and won't transfer the loan amount directly to the borrower's bank account. Can you clarify that process please?
Hey Gary, yeah funds go to your solicitor who will pass it on. I’ve tended to do a 2 year fixed mortgage on my purchase so with that I’ve been able to do what ever work and refinance 18months later with no fees :-) thanks for watching!
@@InvestwithMarkParham I see. So it's only a small amount of cash being released by the lender once the property has been refurbished and refinanced, not 75% of the new valuation. Thanks
@@garymackenzie7794 it’s 75% of the difference between the purchase price and new valuation. This can be small or big, I’ve added over 100k in my best deal to date so released 75k!
Another great vidoe Mark. What do you think those numbers would be on a rent to rent for those don't have the luxury of buying a hMO property? I'd love the contact number for the furniture company as well. Thanks Mark
Its difficult with Rent 2 Rent on those particular deals, the rent (instead of the mortgage on mine would be over 400 more per month) which is only leaving you 300-400 per month profit which is tight for all that work. Im not sure I would recommend this area, or you would need to really negotiate that rent right down.
Hi Mark, thanks for getting back to my previous comments keep up with the fantastic work. My question is how do you handle leverage do you like to keep a lot of cash as a safety net? What’s your opinion for having cash spare if anything went sour?
Absolutely! One of my favourite sayings… only when the tide goes out do you find out who’s been swimming naked! I personally have a minimum of 12 months stashed away :-)
Great post. Can you convert any house to a 4 bed hmo in any area? If there’s an article 4 is it not allowed? Also if you convert a 3 bed to 4 bed hmo do you have to contact the authorities to let them know? Thanks
Thanks for watching David :) You dont need to do anything if you are creating a 4 bed mini-hmo within an area which does not have article 4. The truth is there is very very little regulation on unlicensed HMO's which is why there is some really "low level" stock. In terms of letting authorities know, you only need to inform building control for example if your adding extra bathrooms etc as you would with any building project. If your simply putting a bed in a lounge, your all good :)
Hey, Thanks for your comment, My experience is 0 in social housing unfortunately. I have looked at the numbers and it lags what I can achieve in the areas I invest in within the private sector so I prefer to stick with that :)
I'm a first buyer and I want to buy a property in auction and I'm a bit nervous. I'm just wondering if you can help me or is there any agency or someone can help with that, please?
Mark do you get a lot of hassle with collecting rent payment from the tenants? One of my bug bears regarding whether to invest in HMO’S or not is that a lot of people renting rooms are low paid workers and are from the disadvantaged sector of society and paying there bills is not always a number one priority for these guys and girls.
No issue at all tbh, obviously I outsource the management to a company I own 26% of but that company collects rent by Direct Debit on the 2nd of each month and we have very very few that ever miss. If they do they have one week then it’s straight to the debt collectors to sort out again something that often leads to payment very promptly :-)
Morning Mark thank you for the prompt reply, if you don’t mind I got a few more question’s. What type of tenants do you normally go for housing benefit recipients or under 30&40 and working in full time employment or students etc? What’s your screening criteria to weed out bad tenants? 6 months bank statements, credit check, 6 months payslip, guarantors etc etc? Do you get rent guarantee insurance policies to cover any bumps in the road with non paying tenants? And what is a usual rule of thumb for letting agent management fees? 8-10% (similar to single let fee’s) of the gross rent? As you can probably tell I’m considering moving away from doing single let’s to houses of multiple occupant’s lol
@@ricardotremax5557 personally no, this is typically on a 7 bed + and to date I haven’t done any of these. I do have a deal in the pipeline that will be doing this so fingers crossed I can share that’s soon
![[6 BED] HMO House Renovation Tour with Oli Walsh](http://i.ytimg.com/vi/LLyCzd95540/mqdefault.jpg)
![[6 BED] HMO House Renovation Tour with Oli Walsh](/img/tr.png)
Love this mark!!! Very clear.... HMO works!
I’m in love with your house Mark! Please do a video on your own home and run some numbers in the studio on the white board. I think that would be interesting for your viewers and give them some inspiration to how you ended up living in that beautiful house. Cheers
You have no idea how many people are asking for a house tour. My wife wants me to keep some parts of our life a little bit private such as Kids Schools etc But yes, I have convinced her to let me do a mini tour, not quite all areas but most!
@@InvestwithMarkParham haha of course mate. Them views are amazing! Great video on the HMO’s as well btw.
Anthony I recorded the house tour today its coming out a week tomorrow :)
@@InvestwithMarkParham brilliant! Looking forward to it! 🙏🏻
Again thanks Mark for a quality and super informative video 👍
Your very welcome Dhagash :-)
I didn’t realise the HMO license was as cheap as that I assumed it would be so much more, which is one of the main reasons I’d not really properly considered one before. Won’t be so put off of it now! Thanks Mark :)
Yep, its not expensive, I would check with your local authority as each have different rules and regulations as well as costs but ultimately they are all affordable :)
@@InvestwithMarkParham awesome thank you!
Hi Mark, really enjoying the content and so glad I came across your channel early, just how in-depth you go with the figures. Unlike anyone else on here!! Have found out that to do a BRRR HMO you cant use a BTL mortgage to purchase and then refurb it as this is mortgage fraud. I'm 20 so it's hard to get the full PP saved, and just wondering if the only way to purchase is through bridging or JV with somebody as saving up this kind of cash is tough.
Hi George, you could get a hmo mortgage and capital raise on that. You could also use bridging. I have done both of the above. If you would like for me to recommend a broker who could help with this please check my website and send an email :-)
Great stuff Mark, really helpful seeing all the numbers,
Any chance of doing a video about how you should pick an investment area,
Why some places work for HMOS and others don’t, that kind of thing
Keep it up , and the videos coming
Sure! I’ll do a video looking at a few areas and how to pick an hmo area. Article 4 finding etc. That’s a good idea! Thank you!
@@InvestwithMarkParham hi mark would you say Portsmouth is a good hmo area
I didn't realise 6 bed HMOs had such a good return on a like for like basis. Definitely aiming for this. Wary of most lenders wanting you to have landlord experience before getting a HMOs though.
Yes they do, but at the same time when you started walking you didn’t get up and run a marathon. Lenders are protecting you, trust me they want to lend! Follow the path, make your next deal bigger than your last and you will scale with time :-)!
And yeah, the more bedrooms the merrier !
Great video Mark. Thanks for explaining the differences between a 4 bed and a 5 bed HMO. You mentioned refurbishing a 4 bed HMO then refinancing to get most of your money out. Do you buy using cash then refurbish? Also I was lead to believe that lenders only release funds to go towards another house purchase via a solicitor and won't transfer the loan amount directly to the borrower's bank account. Can you clarify that process please?
Hey Gary, yeah funds go to your solicitor who will pass it on. I’ve tended to do a 2 year fixed mortgage on my purchase so with that I’ve been able to do what ever work and refinance 18months later with no fees :-) thanks for watching!
@@InvestwithMarkParham I see. So it's only a small amount of cash being released by the lender once the property has been refurbished and refinanced, not 75% of the new valuation. Thanks
@@garymackenzie7794 it’s 75% of the difference between the purchase price and new valuation. This can be small or big, I’ve added over 100k in my best deal to date so released 75k!
Another great video Mark
Thanks 👍
Another great vidoe Mark. What do you think those numbers would be on a rent to rent for those don't have the luxury of buying a hMO property? I'd love the contact number for the furniture company as well. Thanks Mark
Its difficult with Rent 2 Rent on those particular deals, the rent (instead of the mortgage on mine would be over 400 more per month) which is only leaving you 300-400 per month profit which is tight for all that work. Im not sure I would recommend this area, or you would need to really negotiate that rent right down.
Hi Mark, thanks for getting back to my previous comments keep up with the fantastic work. My question is how do you handle leverage do you like to keep a lot of cash as a safety net? What’s your opinion for having cash spare if anything went sour?
Absolutely! One of my favourite sayings… only when the tide goes out do you find out who’s been swimming naked! I personally have a minimum of 12 months stashed away :-)
Keycode locks are a good idea. Just on the doors to the individual private rooms or on the main entrance also?
We only do it on the bedroom doors. It’s a good tip!
Hi Mark, which area would you invest in today for HMO
Great post. Can you convert any house to a 4 bed hmo in any area? If there’s an article 4 is it not allowed? Also if you convert a 3 bed to 4 bed hmo do you have to contact the authorities to let them know? Thanks
Thanks for watching David :) You dont need to do anything if you are creating a 4 bed mini-hmo within an area which does not have article 4. The truth is there is very very little regulation on unlicensed HMO's which is why there is some really "low level" stock. In terms of letting authorities know, you only need to inform building control for example if your adding extra bathrooms etc as you would with any building project. If your simply putting a bed in a lounge, your all good :)
Hi
Can you talk about social housing?
Is it a worth while strategy?
Thanks
Hey, Thanks for your comment, My experience is 0 in social housing unfortunately. I have looked at the numbers and it lags what I can achieve in the areas I invest in within the private sector so I prefer to stick with that :)
@@InvestwithMarkParham may I ask what do you mean it lags?
I'm a first buyer and I want to buy a property in auction and I'm a bit nervous. I'm just wondering if you can help me or is there any agency or someone can help with that, please?
Mark do you get a lot of hassle with collecting rent payment from the tenants?
One of my bug bears regarding whether to invest in HMO’S or not is that a lot of people renting rooms are low paid workers and are from the disadvantaged sector of society and paying there bills is not always a number one priority for these guys and girls.
No issue at all tbh, obviously I outsource the management to a company I own 26% of but that company collects rent by Direct Debit on the 2nd of each month and we have very very few that ever miss. If they do they have one week then it’s straight to the debt collectors to sort out again something that often leads to payment very promptly :-)
Morning Mark thank you for the prompt reply, if you don’t mind I got a few more question’s.
What type of tenants do you normally go for housing benefit recipients or under 30&40 and working in full time employment or students etc?
What’s your screening criteria to weed out bad tenants? 6 months bank statements, credit check, 6 months payslip, guarantors etc etc?
Do you get rent guarantee insurance policies to cover any bumps in the road with non paying tenants?
And what is a usual rule of thumb for letting agent management fees? 8-10% (similar to single let fee’s) of the gross rent?
As you can probably tell I’m considering moving away from doing single let’s to houses of multiple occupant’s lol
the bills confuse me there? But great video
Can I clarify any of it buddy ? :-)
In terms of refinancing have you ever done any through commercial valuation? If so how does did it work?
@@ricardotremax5557 personally no, this is typically on a 7 bed + and to date I haven’t done any of these. I do have a deal in the pipeline that will be doing this so fingers crossed I can share that’s soon
@@InvestwithMarkParham yeah i know i should be able to do but they prefer if its bigger HMO’S