Case Study – Coventry HMO Refurbishment with Michal Kuziorowicz
During this case study, our trainer Michal Kuziorowicz tells us about his latest HMO refurbishment project…
Tell us about the project…
The property was an illegal and very tired 5-bed HMO in Coventry. The deal came to me via a sourcing agent, I couldn’t believe it because it was too good a deal to be sold by a sourcing agent. I quickly found out that the sourcing agent didn’t understand the commercial finance end valuation potential.
We converted an illiegal 5-bed HMO in Coventry to a 6-bed/6 ensuite HMO, licenced for 7 occupants with planning to Sui Generis. The refurbishment included a back to brick full refurb with new heating system and electrics which cost 60k.
We started the project straight after the first lockdown. The initial idea was to go into the loft and create an additional 1-2 bedrooms, but because of the shortage of building materials and uncertainty, we decided to work within the footprint of the property and get to the finish as quickly as possible. That was a good shout, because we were pretty much completing this project when the second lockdown started.
How did Fielding Financial’s training help you?
Firstly, I wouldn’t have even bought this property if not for FF and the training. FF completely changed my thinking by providing knowledge (which is essential), strategy (so I’m not just randomly buying properties in random places in the UK), it taught me how to use other people’s money, but probably the most important – the support and belief that I can do it. That support and access to the Fielding Financial family network was key during this project. I remember posting and asking about plaster, getting contacts for reliable planning consultants and many other questions.
My Top Tips and Learnings
- Keep it simple and don’t overcomplicate things
Be flexible and adjust to changes
- Be creative – I sourced building materials from my friends
- The world was ending in the eyes of some people with the pandemic – don’t just sit on your hands, and keep pushing!
- My biggest lesson was on planning – planning takes time, so make sure you have a contingency plan in place and at least two back ups, just in case planning permission isn’t granted.
“Since this project, we have grown exceptionally and mainly focused on high cash-flowing strategies with HMOs being the main one. We have acquired portfolios of ready made HMOs and some small and larger HMO conversions.
Going forward, we are going to slow down on the HMO front (still acquiring them, but with a lower volume) and go into commercial to residential conversions with the idea to retain whatever we can but also selling some of them to increase the amount of equity in our company. Some exciting times are coming for us. Bigger projects with more learning and better profits.”
Keep updated with Michal’s projects by following @headwaypropertyinvestments on Instagram!
Want to learn how you can get started in property? Take a look at our 3-Day Property Investing Training events near you!