9 Bed HMO/Flat Conversion in Huddersfield- Samuel Leeds and Jay Spooner
Hi. I am Samuel Leeds, a property investor, and a property guide. Today I will share the five habits that made me a millionaire. These habits will help you in your property business and you can also become a multi-millionaire like me. So let’s begin.
Jael Spooner was my first ever student who has been financially independent for some time now. She told us about her recent property purchase as she works towards her aim of becoming a property millionaire!
Me: Hi. My name is Samuel Leeds and right now I am about to meet one of my students who completed this property in Huddersfield yesterday. She purchased this house using the BRRR (Buy Refurbish Refinance Rent) strategy which allows you to recycle your money over and over again. Let’s go have a look!
(Me to Jael): Look at this. You have a castle of your own. I have seen the pictures but this is absolutely incredible! Show me around the house.
The house is huge and is going to be worth a lot of money. If we keep the capital appreciation on the side, the forced theoretical equity is going to be a lot more especially if you choose to increase its market value. Are you going to turn it into a 9 bed HMO?
Jael: Yeah that or a 7-bedroom HMO flat. The kitchen and bedrooms here are very spacious and of a healthy size. We were able to fit more than one fridge in the kitchen. We are planning on making the living room nice and comfortable and provide them with a good service!
Me: You know it is so essential that when you have a big HMO, the kitchen is just as large as you have it here. I am going to do a tour of the basement now because I was involved in the planning and the drawings so I know quite a bit about what is going down there!
Jael (while in the basement): This wall is going to be knocked down to turn this space into a kitchen which will receive a lot of natural light through the big windows in the room because of the way the basement is positioned.
The basement and all its space was actually overlooked and not even advertised by the sellers who didn’t realize it's worth but for me the basement was the biggest selling factor at that point!
Me: So what are you going to do with all this space down here in the basement?
Jael: I will turn this basement into a cozy two-bedroom flat.
Me: Jael was my first ever student and has been in this business for quite some time now. She has been financially independent for a very long time and now we are helping her become a millionaire. I had previously advised Jael that a big deal and a small deal are worth the same amount of effort so she should put her head in the game and focus only on big deals and here we are!
So far, we have not even started the house tour properly but we already know quite a few details like the basement is being turned into a two-bedroom apartment, we have a kitchen and a living room and a capacious bedroom which will become an en suite and is currently being installed with waste pipes. Now let’s take a tour upstairs!
Jael (in a room upstairs): In order to increase a home's market value, you need to construct more rooms. Therefore, I decided to demolish this entire bathroom upstairs to turn it into a bedroom. The two smallest rooms on this floor will share a bathroom which needs no renovation as it is in a good condition.
Me: This house definitely has a visual appeal but as you are changing the floor plans a bit, you are further increasing its market value.
Jael: I mean that’s what it is all about especially in the current market where everyone is losing their jobs and wants a comfortable accommodation. I thought to myself that if I am going to do an HMO so I might as well do it in such a way that it caters to the necessities and comfort of all people.
Me: Now since you are changing the floor plans you have quite a bit of work to do but in my opinion, the house is in a pretty decent condition considering that the central heating system is sound and the windows are double glazed so it’s really not that much work in the end!
I know you are managing this project yourself and you are backed up by this spectacular team so how much do you think would be the total cost to reconstruct this house according to your plan?
Jael: Well we just agreed upon a contract with the contractors for 36 000.
Me: Considering the fact that we are in the north, it is a fair price and once you increase its market value, you can either sell it or refinance. How much cash flow will you be making off of this?
Jael: The smaller rooms can go for about 350 to 400 and the bigger rooms can be rented at a much higher price like 550.
Me: If we put everything together, what do you predict will be your gross rent per month?
Jael: This entire property including the self-contained flat will easily generate anywhere around 3800 grand a month.
Me: The sum is close to 4000 and if you refinance it, you’re going to have to make the monthly payment but even after that, how much profit will you be left with?
Jael: It’s around two and a half grand!
Me: All right, let’s move onto the final floor.
Jael: On the last floor, we have decided to build a bathroom instead of an ensuite bathroom in order to reduce the cost. One of the bedrooms is quite snug and doesn’t require any significant changes apart from some new carpets and a bit of décor. The two rooms on this floor will also have a common bathroom.
Me: I know you found this house through an agent and a lot of people discourage that and instead believe that one should directly get in touch with a vendor. However, I think that as long as you know what to look for, you are good to go. So tell me how did you find this property and knew it was the one?
Jael: After making the relevant calculations, I got in touch with a standard state agency which helped me make this purchase without much difficulties. In terms of what made me choose this particular property is the basement. I felt like there wasn’t much work to do because the pipes were in the right place and everything was in order but I also knew that it would add value to the property itself.
I also went around to different flats to see what their value would be in terms of their specifications just to have a general idea.
Me: In my opinion, it is not just crucial to find the right deal but to also be able to compose and execute the right plan.
Jael: The thing is that since I had completed the BRRR course, I was able to keep going back to that knowledge at every step so for instance, when I needed to find a builder or work on the retirement investment sheets, I could count on that course for support. It helped me in predicting whether something would add up in value or not.
Me: You don’t need to know how to be a builder or how to lay down bricks but you do need to know how to manage a project and make money from it.
This house has a perfect location so let’s go outside now!
Jael: The best selling point is that there is a hospital only 5 seconds from this house and as you go down the road, you have got Nando’s, the city centers, the Huddersfield train stations as well as a university, all within walking distance.
Also, it is now officially sold!
Me: This is like millionaire’s row and now I can officially put this on YouTube because the house is sold.
Your mindset has changed. You are a completely different person now than when I first met you in 2014 when you were living in a council house and moving around in hostels. You literally started from the scratch!
Jael: Well, this property actually started from an investment of 6000 pounds into rent-to-rent years ago. This allowed me to get my deposit for my property that went up into capital appreciation. I refinanced it and now I have it all!
Me: You certainly have big things in store for you. What is it like working with me?
Jael: It is incredible because you have expanded my visions immensely. I came to Yorkshire with the intention of buying a house for 100 000 pounds and you made me realize that I needed to make a bigger profit. You have guided and mentored me throughout the whole process.
Me: Guys, Jael came to me like 6 years ago and it all started with a crash course like it always does!
So if you want to receive the exact same training as Jael did, you can join me for the Property Investors course which is absolutely free. I will share my 12 years of knowledge with you in one day which is pretty amazing.
I’ll leave a link in the description box below so please check it out.
If you want to watch Jael’s interview and other such similar videos, then go over to my YouTube channel and check them out. Don’t forget to subscribe and hit the bell icon to receive notifications.
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