HMO Investment Analysis: Hardie Road, Dagenham

Executive Summary

This property is a strong candidate for an HMO conversion. Located in Dagenham (RM10), it benefits from proximity to transport links (Dagenham East Station). The existing 4-bedroom layout can be optimized into a 5-bedroom HMO by reconfiguring the dining room. Given the high demand for professional house-shares in the area, this project offers significant upside potential, assuming compliance with local licensing standards.

Acquisition Overview

Projected Rental Income (Post-Refurb)

Rent estimation based on local comparable 4-5 bed house shares.

Projected Cashflow & Returns

Licensing & Compliance

• Mandatory Licence: Required (5+ occupants).
• Additional/Selective Licence: Likely required by Barking & Dagenham Council.

Status: Compliance works (Fire alarm, FD30 doors) are mandatory for licensing.

• Capacity: 5 Bedrooms (Compliant with space standards).
• Amenities: Requires bathroom/kitchen ratio assessment per council rules.

Property & Layout Analysis

Recommendation: Convert Dining Room to Bed 5. Retain Living Room for communal compliance.

Refurbishment Plan

Standard: Medium (High durability for HMO use).

Refurb Timeline:

Weeks: 8 || Months: 2

Negotiation Points

Investment Case Summary

Short Recommendation

A solid HMO conversion play. The property size supports 5 rooms comfortably. Focus on fire safety compliance to ensure licensing. ROCE is strong.

Detailed Recommendation

Hardie Road represents a high-potential HMO asset. By converting the dining room, you unlock a 5th income stream. With an estimated gross yield above 8%, this beats residential BTL averages. Focus on high-end finishes for professional tenants to maximize room rates. Be mindful of the Barking & Dagenham licensing scheme; ensure the application is submitted early. Your entry as a first-time buyer provides a cash-flow positive outcome despite the financing hurdles.