“We Had No Property Experience – Now We Own an HMO”: Jack & Hannah’s Story

Background: New Investors, Big Ambitions

Jack and Hannah came to HMO X as completely new HMO investors.

Both are in full-time employment and had been saving diligently for six to seven years. Jack had spent a lot of that time educating himself on different investment strategies and running the numbers on what might work best for their future.

“Economics generally interested me… it was just a case of educating myself on what forms of investment were realistic and then choosing what was best suited to our plan for the future.”

They briefly considered a refurb-led strategy but quickly realised it didn’t fit their lifestyle or time constraints.

“We looked at a refurb property but given the amount of time required to really invest to get a reasonable return – which we didn’t have – we’re both fully employed. So we decided a refurb strategy wasn’t for us.”

Instead, they focused on a high cash-flow HMO strategy that could be managed by a competent local agent, allowing them to grow a portfolio without becoming full-time landlords.

The Challenge: First-Time Investors, Complex Deal

Jack and Hannah were not just new to HMOs; they were new to property ownership full stop.

• They initially tried to buy an HMO in Liverpool but had to pull out when they realised, they needed to secure a residential mortgage on their own home first.
• As first-time investors without an existing residential mortgage, their lending options for HMOs were limited, and the whole process felt high stakes.

“Departing that significant amount of money is scary. I don’t think anyone would see it differently.”

On top of that, the property they eventually offered on through HMO X wasn’t straightforward:

• It sat in an Article 4 area
• It required a Lawful Development Certificate (LDC) to satisfy lenders and confirm its lawful use as an HMO
• There were multiple parties involved – broker, vendor, solicitors, planning experts, and a managing agent

For new investors, this could easily have been a deal-breaker.

“It was an additional risk that we might not necessarily need to take… We knew it was a conditional offer based on it being approved… and there were still fees that were going to be paid regardless of whether we completed.”

Why They Chose HMO X

Jack and Hannah first encountered HMO X through our website while searching for HMO opportunities.

“The website [Xchange] was brilliant… it had all of the content that we needed to get that initial feel for whether it was a viable property.”

What made the difference wasn’t just the listing, but the immediate, expert-led support once they enquired.

• They were able to talk through the deal directly with Holly, who brought both HMO management and sales experience.
• HMO X provided detailed deal information from day one, aligning closely with Jack’s own viability template.
• The early interaction created confidence not just in the property, but in the team behind it.

“It was nice to talk to someone who I could tell knew a lot and made me feel like it was not only the right property for us, but the right people to work with.”

Navigating the Lawful Development Certificate (LDC)

The key complexity in this deal was the LDC.

The vendor had originally purchased the property before Article 4 came into effect, when an LDC wasn’t necessary. But with Article 4 now in place, and lenders increasingly cautious, the certificate became essential for Jack and Hannah’s purchase and mortgage.

HMO X coordinated a multi-expert approach:

• A planning expert to help the vendor secure the LDC
• A local HMO management expert to support with technical and compliance details
• Ongoing liaison between:
  • Jack and Hannah
  • Their mortgage broker
  • Vendor’s solicitors
  • Buyer’s solicitors

“It did feel like good, necessary teamwork on a complicated scenario. The communication was always brilliant – concise but frequent… It was important that everyone knew what they needed to do and effectively did it.”

For Jack and Hannah, who couldn’t directly control the LDC process, having HMO X in the middle made a big difference.

“It’s good for anxiety as well to know that someone’s looking at it and getting something done… Having you guys as a middle person to communicate between both sides was quite good.”

Their broker found a product that would accept the LDC as a condition on completion rather than upfront, which avoided a further 2–3 months’ delay. Combined with the planning and compliance support via HMO X and the Hub experts, the deal moved forward.

Building the Local Power Team

HMO X also introduced Jack and Hannah early on to a local, professional HMO managing agent team.

Crucially, they brought this agent in before the offer was even submitted:

• They walked them around the property
• Sense-checked the rental figures to make sure they were realistic
• Provided insight into the tenant profile, local demand, and standards and regulations in the area

“We engaged even before putting an offer in… I couldn’t imagine doing it differently, to be honest.”

As non-local owners, management was never going to be an afterthought, it was mission critical.

“There’s no chance we could do it without them. It’s a huge risk with HMO investment. It’s probably the most important cog in the machine, the management company.”

The relationship has been strong enough that Jack and Hannah are now planning future purchases within this managing agent’s radius, so they can manage their whole portfolio.

“We heavily rely on a competent agent – and they are more than that. They are a lot better than we assumed we’d get… We’re trying to target our future properties in a radius where they will manage so we can have them for all our properties.”

Early Results: From Theory to Reality

At the point of interviewing Jack & Hannah for this case study:

• 4 out of 5 rooms were already occupied
• The advert was live for the final room, with a tenant going through checks
• Legal, admin and operational transitions were well underway with the managing agent

The first rent cycle is always the emotional turning point.

“We’ve been just paying bills and bills and bills for a long period of time now… Until the money comes in, there’s a bit of me that thinks – has this been the right thing?”

However, when they plugged the actual numbers back into their viability calculator (similar in concept to the HMO X Deal Analyser in the Hub), the assumptions and the reality were lining up.

“When we do our viability calculator and we’ve assumed certain variables and numbers… when they actually ring true to reality, it does confirm to yourself that you’ve got the major things right.”

Their long-term strategy: to scale a portfolio through a limited company structure with professional management, remains unchanged and validated.

“Our goal remains the same… As long as we can materialise scaling and having multiple [HMOs], I think we’ve made the right decision in our strategy.”

What They’d Tell Their Past Selves

If they could go back to day one, Jack and Hannah’s advice to themselves, and to other first-time investors, would be:

• Get started and educate yourself
  “You’ve got to start somewhere. Look into it. Make a company. That’s the first thing you need to do.”
• Build a proper team around you
  Broker, managing agent, planner, solicitor – and a community to lean on.
• Use other investors as a sounding board
  Jack had a friend already investing in HMOs in Leeds who helped validate assumptions and reduce fear.

“Having a friend that had bought an HMO was a great resource… There are a lot of checkpoints that have concerns associated with them… and he was a great soundboard.”

• Don’t underestimate the value of time in the market
  “Very few people regret when they invested, but a lot of them regret not investing sooner… Time is such a powerful tool to the whole formula.”

The Role of the Hub

Although Jack and Hannah started their journey before the HMO X Hub fully launched, they effectively got the “beta version” of what the Hub now offers:

• Visibility of off market property deals with transparency of all documents for due diligence 
• Access to multiple experts working together behind the scenes
• Support from a wider community of investors and experts
• A central point of coordination and communication
• Support on planning, compliance, finance and management all in one place

For a new investor without an existing network, they’re clear that something like the Hub would be invaluable:

“If I was someone without critical support from others, a place to have everything that you will need in one place negates the chances of making a mistake or there being gaps in your knowledge. To have a complete guide can only be great for that.”

Would They Recommend HMO X?

In short: yes, 100%.

“Finding the property with all the key information on was a great starting point… That call with you was instrumental to the deal happening. I’ve had similar experiences with other companies where, based on my lack of confidence in what they’re selling, it put us off a bit. As a first-time buyer, it’s very key to think – this is the right one to go for.”

Jack and Hannah are already planning their next purchase and intend to come back to HMO X when they’re ready to go again.

If you’re where Jack and Hannah were six months ago, you’ve saved hard, you’re serious about investing, and you don’t want to do it blindly, the Hub and the HMO X team are here so you don’t have to work it all out on your own.