Jim ‘HMO Daddy’ Haliburton bought his first property in 1991 and currently has over 1000 tenants!
Starting in 2001, Jim started renting a property out to students he knew. A light bulb moment happened and he realised the potential income that could be made. He then utilised this alongside his job and branched out to students and pushed hard into HMO’s to test the potential income. It was a real star aligning moment for Jim as the Market was perfect for it. Jim grabbed this buying style and really ran with it. Pioneering his way forward, cut to present day and He currently owns 140 Houses of Multiple Occupation, this totals in him having over 1000 tenants in the West Midlands and is currently buying at least one property per month. He quit his run-of-the-mill job as a law lecturer and instead made millions from his HMO’s.
What is a HMO?
A HMO means a “house of multiple occupation”– a spin off model of buy to let investing. You take a property and instead of letting it out to 1 tenant you convert the property into a HMO and let the property out to multiple tenants. Thus, scaling your income from the property.
What’s Jim Haliburton’s secret formula I hear you ask?
He purchases two and three bed wrecks for around £80-100K for cash, spends around £20-40k converting them into 5-6 bed HMO’s, letting each room to a separate tenant for around £280pcm and up.
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 £30k 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..
HMO’s can be HUGLY profitable! One of Jim’s properties generates more income than what he gets from a pension he invested in 45 years ago. That’s a huge gain from just 1 property. Imagine having 140….
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 by clicking below.
