Show Notes
Is buy-to-let still the best way to build wealth through property, or do HMOs offer a smarter route to higher cashflow? In this solo episode of From The Ground Up, Steve Doran breaks down the fundamentals of HMO investing and explains why shared housing can create significantly more income than a standard buy-to-let property when done properly. Steve explains what an HMO is, who the main tenant markets are, and why professional tenants, students and local housing allowance tenants all require different property setups. He also shares why HMOs can create a genuine win-win by providing affordable, good-quality accommodation for tenants while giving investors multiple income streams from one property. This episode also covers the key practical steps every HMO investor needs to understand, including HMO licensing, planning permission, Article 4 directions, C3 to C4 use class, amenity standards, room sizes, fire safety, property management, HMO mortgages, SpareRoom demand, tenant sourcing and why using the right specialist broker matters.
Want to learn more and find out how to transform your financial future in just 2 days - connect with Steve via https://stevedoran.co.uk/home
Key Moments: 0:00 Why turnover is vanity and profit is sanity in property investing 00:33 Why buy-to-let is not working like it did 10 years ago 01:12 What is an HMO and why shared housing can be a win-win 02:28 HMO definition: three or more people from two or more households 03:10 Professional tenants, students and local housing allowance HMO markets 04:02 Why HMOs provide affordable housing for working professionals 05:18 Buy-to-let vs HMO numbers on the same property 06:25 How a six-bed HMO can generate £1,700 monthly profit 07:30 Why HMOs create multiple income streams from one property 08:20 Using SpareRoom to check HMO demand before investing 09:45 Why supply and demand matters when choosing an HMO area 11:04 How to optimise SpareRoom listings and avoid empty rooms 12:30 HMO amenity standards, room sizes and local authority rules 14:18 Why you should always measure HMO rooms yourself 15:22 HMO licensing, gas safety, EPCs, EICRs and fire doors 16:43 HMO planning permission, C3 to C4 use class and permitted development 17:42 What Article 4 means for HMO investors 19:05 How to research successful HMO planning applications 20:15 Why a certificate of lawfulness can protect your HMO 21:14 Managing HMOs properly and choosing the right letting agent 22:23 Fire alarm testing, compliance and landlord responsibility 23:18 When to bring HMO management in-house 24:32 Why HMO investors need specialist mortgage advice 25:40 HMO mortgages, lender criteria and avoiding buy-to-let mortgage breaches 26:54 Why an existing HMO licence does not transfer to a new owner 27:50 HMO licence fees, five-year licences and council inspections 28:56 Why you can usually operate once your HMO licence application is submitted 29:28 Final advice for building cashflow through HMOs
More from From The Ground Up
Is buy-to-let property investment becoming less profitable in the UK? With changing landlord legislation, rising costs and tighter regulations, more property investors are exploring commercial property as an alternative way to generate rental income and build long-term wealth. In this tactical solo episode of From The Ground Up, Steve Doran explains how to invest in UK commercial property, find high-yield investment opportunities, reduce potential tax liabilities through capital allowances and finance commercial buildings using specialist property mortgages. From fully repairing and insuring (FRI) leases and off-market commercial property deals to 75% loan-to-value commercial mortgages, business tenant agreements and non-residential stamp duty rates, this episode provides a practical introduction to commercial property investing in the UK. If you've ever wondered how to buy commercial property, calculate rental yields, find commercial property deals, claim capital allowances or build a property portfolio beyond traditional buy-to-let investments, this episode is for you. Want to learn more and find out how to transform your financial future in just two days? Head to https://stevedoran.co.uk/home IN THIS EPISODE YOU'LL DISCOVER: Commercial property vs buy-to-let: Why Steve believes commercial investment can offer attractive alternatives to traditional residential property. How to invest in UK commercial property, including retail shops, office buildings, hotels and light industrial units. Commercial property rental yields explained: How Steve purchased three retail units for £530,000 generating £53,000 annually, achieving a 10% gross initial yield. The advantages of longer commercial leases, with business tenants potentially committing to three, five, ten or even 20-year agreements. Fully repairing and insuring (FRI) leases explained: How maintenance and repair responsibilities can be allocated to commercial tenants. Commercial property capital allowances: How Steve identified £76,000 in qualifying allowances, potentially saving £19,000 in corporation tax. Section 198 elections and commercial property tax relief: Why specialist advice and the correct purchase documentation are essential.
Could you build a UK property portfolio, replace your corporate salary and invest in commercial property without using your own savings? Want to learn more and find out how to transform your financial future in just two days, head to https://stevedoran.co.uk/home In this episode of From The Ground Up, Steve Doran sits down with property investor and academy coach Tracey Tomkins to explore her journey from corporate finance to full time property investing. Tracey reveals how a conversation with a family member unlocked £250,000 in private investor finance, how she completed a property flip in just nine weeks, and how she used her pension to purchase a commercial property generating an initial 8.5% return. From buy to let tax to SIPP property investment, HMO conversions, the Buy Refurbish Refinance strategy and joint ventures, Tracey shares the real numbers behind her deals. Discover how she negotiated a Peterborough property from £220,000 to £175,000, plans to convert it into a five bedroom HMO generating approximately £1,300 monthly cash flow, and is exploring a £650,000 joint venture with a potential £1.8 million gross development value. If you're looking to start property investing with little money, raise private finance, buy commercial property through a pension or transition from employment into property investment, this episode offers practical insights into funding deals, managing refurbishments and building long term wealth. KEY MOMENTS: 0:00 Introduction: Tracey Tomkins' Journey From Corporate Finance to Property Investing 02:58 The Buy to Let Tax Mistake That Started Tracey's Property Education 05:02 How Tracey Started Property Flipping Without Using Her Own Money 06:23 How One Conversation Unlocked £250,000 in Private Investor Finance 08:33 Finding Private Investors and Recycling Funds Into Multiple Property Deals 10:22 Why Tracey Invested in Stoke on Trent While Living in London 12:44 How to Manage Property Refurbishments Remotely Using a Project Manager 15:22 How Tracey Completed a Property Refurbishment £10,000 Under Budget in Nine Weeks 19:18 From Corporate Employment to Full Time Property Investing After Redundancy 24:05 How Tracey Used Her Pension to Invest in Commercial Property 26:38 Why Tracey Kept Her Final Salary Pension Separate 28:42 Buying Commercial Property Through a SIPP: What You Need to Know 30:49 Choosing Commercial Property With Reliable Tenants and Long Leases 33:39 How Tracey's Commercial Property Generated an Initial 8.5% Rental Yield 35:56 Converting a Peterborough Property Into a Five Bedroom HMO 37:37 How Tracey Negotiated a £220,000 Property Down to £175,000 41:54 HMO Investment Numbers: £70,000 Refurbishment and £310,000 Target Valuation 42:36 How Hybrid Commercial Valuations Work for HMO Properties 45:46 Using Private Finance to Target £1,300 Monthly HMO Cash Flow 47:06 The Buy Refurbish Refinance Strategy and Why Property Education Matters 49:57 How Tracey Identified a Potential £7,500 VAT Saving on Her HMO Conversion 51:37 The £650,000 Property Joint Venture With a Potential £1.9 Million Development Value 55:31 Why Property Networking and Joint Ventures Create Investment Opportunities 57:26 Giving Back: Tracey's Property Academy Charity Experience in The Gambia 01:01:25 Advice for Beginners: Property Education, Networking and Taking Action 01:03:57 The Mindset Shift That Changed Tracey's Property Investing Journey
Could you be sitting on enough money to buy your next investment property without even realising it? If you've been paying into a pension for years, you could already have access to one of the most tax-efficient property investment strategies available in the UK. In this tactical solo episode of From The Ground Up, Steve Doran explains how to use your pension to invest in UK commercial property, generate tax-free rental income within your pension and potentially fund property development through a SIPP (Self-Invested Personal Pension) or SSAS (Small Self-Administered Scheme). From pension contributions and corporation tax relief to commercial property mortgages, SSAS loanbacks and the 50% pension borrowing rule, Steve breaks down how business owners and property investors can take greater control of their retirement funds and use them to build long-term wealth. He also shares his own experience of purchasing a light industrial unit through his pension, achieving a 9.5% gross initial yield, and explains why understanding HMRC pension rules is essential before attempting any pension-funded property investment. If you've ever wondered whether you can buy property with your pension, transfer an old workplace pension into a SIPP, or use your SSAS to lend money back to your limited company, this episode is for you. Want to learn more and find out how to transform your financial future in just two days? Head to https://stevedoran.co.uk/home
Can you build a UK property portfolio without having a huge deposit sitting in the bank? In this episode of From The Ground Up, Steve Doran sits down with Richard Aylward, a property investor and coach with more than 25 years of experience, to break down the creative property investment strategies he has used to build a multi-million-pound portfolio. From purchase lease options, HMOs and title splits to private finance, bridging loans and property joint ventures, Richard explains how investors can structure deals, solve problems and acquire property without relying solely on traditional deposits. Richard also takes Steve inside his current £525,000 HMO conversion project in Swindon, where an expected £220,000 refurbishment could create a property worth around £850,000, with projected annual rental income of approximately £85,000. They unpack the realities of bridging finance, why development projects need a cash buffer, how Richard turned a £308,000 property into a £450,000 title split, and how building a professional reputation helped him raise private finance from investors. Richard then gives a detailed explanation of purchase lease options in the UK: how they work, the three key terms you need to agree, why they can create a future below-market-value purchase, how assignable options work and the difference between a lease option and exchange with delayed completion. At 70 years old and still actively investing, Richard also explains why it is never too late to start property investing — and why mindset, education, consistency, networking and taking action matter more than simply consuming information. Want to learn more and find out how to transform your financial future in just two days, head to https://stevedoran.co.uk/home IN THIS EPISODE YOU'LL DISCOVER: ⏹ Purchase lease options explained — how to control a property now with the option to buy it later ⏹ How a £525K commercial property conversion could become an £850K+ HMO ⏹ Why property development using bridging finance requires a significant working-capital buffer ⏹ How Richard bought a property for £308K, completed a title split and revalued it at £450K ⏹ How to build credibility and relationships before attempting to raise private finance for property ⏹ The three main terms of a purchase lease option: purchase price, rent and option period ⏹ Why lease options can potentially create a future below-market-value property deal ⏹ Purchase lease option vs exchange with delayed completion — and the important difference between an option and an obligation to buy ⏹ How assignable purchase options can potentially be transferred to another property investor ⏹ Why understanding a seller's real motivation can sometimes matter more than offering the highest price ⏹ How joint ventures allow property investors to combine money, time, knowledge and experience ⏹ Why due diligence on a property JV partner is just as important as analysing the deal itself
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