In our latest case study, we spotlight Michal Kuziorowicz, the director of Headway Property Investments. With a keen eye for potential and a knack for strategic financing, Michal's journey in transforming a property into a high-spec, seven-bed HMO is both inspiring and instructive. From innovative funding methods to the influence of The HMO Platform mastermind group, this case study delves into the process of elevating a property investment to new heights.

Join us as we explore how Michal's approach to property development is reshaping standards and yielding impressive returns.

Read the interview below

Tell us about yourself and business. 

"Hi there, my name is Michal Kuziorowicz and I'm the director and co-owner of Headway Property Investments. We've been operating for just over three years and in the last four years we've acquired a small portfolio of buy-to-let and small HMOs ranging from 4 to 6 rooms, spread across Yorkshire down to London."

Tell us about the deal

How did you find it?  

"We came across this deal via our letting agent. She gave me a call saying there is fantastic property for sale, not thinking too much, I viewed a couple of days later and it was perfect for what we wanted to do."

How are you financing it? 

"We are financing this deal using bridging finance and the deposit has been covered by money we had from the refinance of previous HMO, and then refurb will be covered by angel investor funds." 

Purchase Price? 

"The purchase price for this property is £157,000. We are going to spend about £132,000 to do the refurb and GDV will be in the region of £310,000 and £330,000.  

This house will be converted into a seven-bed HMO. We are aiming for a really high spec 7 ensuites as well. In regards of profits, we are going to receive £3,000-£3,500 in rent. And after paying all the bills and costs we are left with £1,250 profit every single month. We are going to use a specialised local HMO letting agency to look after it and manage it for us."

What is the strategy? 

 "About half a year ago we signed up to The HMO Platform mastermind group, and those guys really taught me about what a Next Level HMO is, and that really opened my eyes. With this property we are going beyond anything we’ve done before. It really will be a Next Level HMO. All the room sizes will be very very large. I think the smallest room in this house will be 11 square meters plus ensuite.

The design will be very very high to attract a higher number of tenants. The communal area will be very very large and again all of this will be way above HMO standards from the local council. The communal area will be designed so there is a space for the dining, there is a space for tenants to chill, watch the telly, play games. Also with COVID just passed, there will be a designated place for people to work from home."  

Tell us about your experience with The HMO Platform

How has being a part of the mastermind group helped you? 

"The HMO Platform helped us massively. The first thing that I really want to say is about the access to Matt & Niall and really all the HMO landlords. If there is any problem or we need an answer to anything, we've got the answer within an hour. Answers to all the HMO landlords, and some of them are way ahead of our journey which is really valuable as well because they do those amazing big fantastic deals."

How has being a part of the mastermind group helped you with this deal? 

"You know their experience and expertise is priceless. At school we learned how to dissect the frogs and during the mastermind we dissect every single deal. We go through every single detail and if there is any small problem with it, we'll sort it and find the solution."

Why did you join the mastermind programme? 

"One of the other benefits of The HMO Platform is the opportunity of site visits. Some of them are Matt and Niall's projects. We can learn about problems and how they overcame those problems. We can see the real project in real life. Being on site gives you a vision of what's possible, keeps you really motivated. You can get little tips on like little details; how to design things; how to overcome some of the smaller problems as well. The last site visit gave me a really good vision of what I could do with this property we are standing in today."

What would you tell someone who’s thinking about joining? 

"If you're thinking of creating your Next Level HMO DO IT!"