Jim ‘HMO Daddy’ Haliburton bought his first property in the noughties and gave up his job as a law lecturer to go full time into landlording in 2004.
He currently owns 160 properties in the West Midlands and is currently buying at least one property per month. He quit his run-of-the-mill job and instead made millions from his HMO.
How did he do it?
And…
What’s Jim Haliburton’s secret formula?
He purchases two and three bed wrecks for around £60-80k for cash, spends around £20-40k converting them into 5-6 bed HMO’s, letting each room to a separate tenant for around £280pcm. A HMO means a “house of multiple occupation”– a spin off model of buy to let investing.
The model is hugely controversial and can be hugely risky, but buying to let to multiple tenants on a grand scale can make you very, very rich.
A traditional buy to let is where a house is let to a single tenant, but the yields are far greater for multiple tenants occupying each room.
The annual yield is around £20k per year for a 6 bed property. He doesn’t much care what happens to the capital value as the profit is in the income.
He then secures a mortgage on a property of around 70% of the uplifted value, say £140k, after the original investment of £100k is returned to start the process again, he has £40k surplus in his pocket and a healthy income for life.
He also only buys within a 10 mile radius as that’s the market he knows. At Progressive Property we often call this a “goldmine area”. Jim is part of a growing trend or a breed of “megalandlords” who “can’t resist” adding to his portfolio in the current market.
High Yield Cash Cows..
One of his property yields him 20pc which means he gets a greater income than a pension he invested in 25 years ago.
The HMO Daddy argues he is doing tenants a favour by offering bedsit style accommodation – as they can save money towards buying a home if they pay less rent now.
He loves what he does and tops up his income by selling property books and coaching other would be buy to let landlords.
Jim is one of the country’s largest HMO investors which is why he is often referred to as the “HMO Daddy”. You can find out more about HMO investing in the following blogs;
