How to Convert 2 Bed Houses into 4 Bed HMOs

In this article, I'm going to show you how you can literally go to rightmove.co.uk and find a two-bed house and turn it into a four-bed Hmo with very high cash flow.

Firstly, if you're looking for a Hmo, you want to go to a kind of cheap area. Wolverhampton doesn't work anymore because there's article 4 in the region and so just go somewhere slightly outside where there's no article 4.

We're going to go to Walsall where generally speaking, there is no article 4 which is something that you can just google.

This means that you do not need planning permission to turn a property into a Hmo while in Walsall. However, you will need a license if it's a five bed but if it's just a four bed Hmo, you won't need a license and that's generally the case across the UK.

Why do we want a two bed and don't want to find a three bed and turn it into a four bed? The answer is because three beds are really expensive.

If we look at just three bed houses, you can see that generally speaking even the ones that look like junk and are ugly will cost you close to 200,000 which is a bit expensive for this kind of a house.

Whereas if we search for a two bed house because we want it cheap to be able to buy low and rent high, we’ll find houses for as cheap as 70,000.

Now how do you turn one of these little cheap 100 grand two bed houses into a four bed Hmo?

We do know that if we could get four rooms out of this which is only a two bed at the moment, we’d be ripping off from the investment.

If we look on the map where this is, it's within the very center of Walsall which is the little circle town. I know Walsall really well as I grew up there.

There are people looking to rent rooms in Walsall right now like crazy but there's a recession and if you look at a single room in the area, you’d be reaping close to 500 pounds a month which could go up to 600 or 700 within time.

You might be thinking but Samuel, how can you turn that into a bedroom? Don’t you need a communal room because for it to be a Hmo it needs a communal room? And the answer is it does need a communal room to be a Hmo unless the bedrooms are 100 square feet each.

The bedrooms by law need to be 70 square feet and if they're 70 square feet, you need a communal room but if the bedrooms are 100 square feet, you don't need a communal room and guess what, bedrooms that are two bed houses tend to be big bedrooms which is over a hundred square feet.

I need to go down there and view the house as i'm not suggesting that you go and buy this house without viewing it. I'm just giving you the principle of how this works and so this is how you turn a two-bed house into a four-bed Hmo and I hope you found this article helpful.

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