The house was dilapidated when Mike bought it but at a purchase price of £95k it was 25% below it’s true value. Issues included damp on the ground floor, rotting timbers, a hole in the roof, wooden windows and more.
The interior was cleverly modelled to allow for 6 bedrooms and designed to a luxury industrial designer specification which attached a very high rental figure for the area, £450 per room (£31,800pa). The quality of the house speaks for itself when you see the photos.
The development also involved a highly complex C3 (Residential) to C4 (Small HMO) planning application against a hostile Council who tried to stop the house being legally used as a HMO. Mike knew the Council had no lawful basis to refuse the application and he got the Council’s decision overturned at by the Planning Inspectorate. Mike is one of a very select group people who have successfully challenged Nottingham City Council and s many years of HMO experience was invaluable in this.
Despite the house being a success and being lucrative, Mike took a dispassionate decision to sell the house in an auction because the houses USP (the décor) was less pronounced when it was tenanted. The market was incredibly hot in late 2020 with many buyers paying overinflated prices. This decision proved to be an excellent one and the property achieved 250k, £40k more than it was valued by the bank & £60k more than Mike had spent on it! It was even featured by the Daily Mail on 2nd Dec 2020 as an example of a profitable flip project the deal was that good!
Digital Version: https://www.thisismoney.co.uk/money/mortgageshome/article-9006781/Why-doing-houses-flipping-good-idea.html
