My HMO Investing A–Z: Everything You Need To Know In 60 Minutes

Hey, it's Anne from YPN and today we're talking about HMO property investing and explicitly, is HMO investing right for you? If you are listening to this or reading this as an article in YPN or maybe on the YPN Hub.

And who better to join me to answer this question than my good friend, Andy Graham, founder of HMI Roadmap, prolific HMO investor and developer himself, even at a tender age, relatively tender age.

So, Andy, thanks for joining me today.

The purpose of today is for anyone listening in to understand, right, is HMO investing right for me? Is it going to tick the boxes that I want to achieve? What are the pitfalls along the way? Where can it go wrong? And for people to get a real good understanding by the end of this session to say, yeah, you know what? Maybe this is for me or, you know, not a trance.

And that's fine if that's the case as well.

So thanks for joining me today.

Thanks, Sam.

It's really great to be back here.

And I enjoy these conversations that you and I have had over the years about property and specifically HMOs.

So yeah, I'm looking forward to this.

So I've got a whole list of questions and we're going to work our way through them.

Let's start with the big one, really.

Why would someone choose HMOs over standard buy-to-let or potentially other property strategies? Yeah, so

I think more so than ever before, The return that we can get on any amount of money that we invest in a property or leave invested in a property or indeed any investment full stop is so, so important.

And quite simply, HMOs, because of the consolidated fashion of HMOs, sharing a property by a number of individuals, it allows us to just increase the yield, the return on any amount of money that we've got invested in that property.

And comparably, when you're looking at single lets, you might invest let's say the same amount of money or proportionally the same amount of money, but just for a much, much lower return.

So it's all about, first and foremost, at least about yield.

It's about getting the best possible return you can on your money.

And HMOs are so good for that.

So much better than single let's.

Okay, so you talk about yield, and I guess we're also talking about income generation as well now.

And you and I both know that with single-let properties, you probably make to £300 a month from a standard single-let property.

And so it's going to require a whole heap of those to replace an income or to create a substantial income.

So, does that mean that HMOs are only good for income generation or can they tick the books in terms of capital growth or our ability to add value and enforce appreciation of the asset? Can it be all three or is it just the kind of income and yield thing that we're looking at?

Well, the good news is it can absolutely be all three.