HMO deal calculator.
Buy a house, convert it, let it room by room, refinance on the commercial valuation. Model the whole HMO play — and see exactly how much of your cash comes back out.
Shape an HMO dealWhat it models
- Room-by-room rent and HMO-level running costs
- Commercial valuation: net rent ÷ yield, versus bricks-and-mortar
- Conversion cost, timeline and a staged drawdown facility
- Bridging to buy, then the HMO mortgage with the ICR stress test
- Cash in vs cash out — what the refinance returns to you
- Email the finished deal to yourself as a one-page PDF
A worked example
Illustrative. Read how HMOs are valued for the full logic.
HMO questions, answered
How is an HMO valued?
Smaller HMOs are usually valued as a normal house (bricks-and-mortar). Larger, licensed HMOs can be valued on income — net rent divided by a yield, typically 8–10% — which often values them well above comparable houses.
What deposit do I need for an HMO?
Specialist HMO lenders typically lend up to 75% of value, so 25% deposit plus costs. On a buy-convert-refinance, many investors bridge the purchase first and refinance onto the HMO mortgage at the higher post-conversion valuation.
What running costs should I budget for an HMO?
Bills-included HMOs typically run at 25–35% of gross rent once utilities, management, maintenance and voids are counted — materially higher than a single let.