In a recent YouTube video, I visit my friend Mohammed’s BRRR (Buy, Refurbish, Refinance, Rent) to SA (Serviced Accommodation) project. Mohammed Ullah bought a house in Wigan, Greater Manchester for £105,000. He then converted it into a 6 bedroom serviced accommodation with a new value of £250,000. Mohammed didn’t use a penny of his own money! In the video (above) he tours the house and explains exactly how he did it. Please watch the video until the end, as it has important information that you don’t want to miss.
Combining the BRRR strategy with serviced accommodation is a great way to increase your cashflow while recycling your capital into new projects. If you get it right, you can become financially free from a single deal as Mohammed has done. In this article, I will give you three tips for finding your own BRRR to SA deal.
1. Find a property where each room could be ensuite
While an HMO (house in multiple occupation) can have shared bathrooms, when you are doing serviced accommodation, the more private space the better! You should try to make sure each room already has, or has space for, ensuites. This will give your guests the hotel experience. Offering a high quality experience ensures that you attract the right sort of guests to the property and means you will get great reviews.
If you can go beyond ensuites and offer studio apartments, or full apartments, within the property, this is also something to consider. People often like to have their own space and this distinguishes you from the hotels in the area.
2. Find a property near a busy hotel
When a hotel chain like Premier Inn or Travelodge decide to open a location, they spend lots of money on research. They find out if there is a need for rooms in the area and do a deep dive into the local market before any building work even starts. You can piggyback off all that work by buying a property near one of these hotels.
Even better, you can check if they were right about the area. Simply go on their website and see how much availability they have. Call them or go in and ask about booking rooms for a large group. Find out how often they are fully booked. If they are often full, odds are you have found a good location.
3. The bigger the house, the better
You want to find a big property, this way you can rent out more rooms. You may also want to get a commercial valuation on the property at some point down the line, allowing you to borrow more money. Don’t focus on cost. Think big, find the right property and you will be able to find someone interested in financing the deal.
If you need a hand getting started, why not come down to the next Property Investors Crash Course? Tickets are only £1 and you can book yours here. Hopefully, we can have a chat about how you can find your own BRRR to SA deal.