Historical Commercial Conversion Trebles In Value And Provides Twelve Unique Income Streams
Ian Schaff has been a property investor for the last 15 years and has an extensive portfolio of flats, houses and HMOs.
An ambitious investor, Ian sought the help of Paul Smith and Touchstone Education before undertaking a commercial conversion of a historic 1880s hotel.
We spoke to Ian to find out more…
Commercial Portfolio Builder and Full Mentorship Training
Ian began, “I joined Touchstone Education in April 2021 after seeing Paul Smith on YouTube. After first buying the commercial course, I signed up to the full Mentorship option.
Run Down Hotel Renovated To Provide 12 Income Streams
“My most recent project,” Ian continued, “is acquiring and refurbishing The Central Hotel, now renamed The Commercial, which was its original name in the 1880s.
“This has been a commercial conversion using an “exchange (for £1), keys undertaking and a delayed completion strategy.
“It is converting a very run down hotel into a mixed use building, providing 12 income streams, including houses of multiple occupation (HMO), residential, commercial cafe, commercial serviced accommodation (SA) and storage facilities.
“The property generates in the region of £80,000 gross income. In total there are six HMO rooms, a cafe, function room, a 4 bedroom maisonette and three storage areas.
“The refurbishment included decorating and repairing the whole of the outside of the building. It also needed total rewiring of some very old installations and new individual supplies and meters to different parts of the building.
“All rooms and en-suites needed decorating and refurbishing.
“We also totally refurbished the Manager’s accommodation. This provided a very smart 4 bedroom maisonette which now houses a family of six. It features a brand new kitchen and bathroom.”
Valued At Three Times The Purchase Price and £100,000 Cash Back
Ian’s redevelopment delivered significant profits from value as well as passive income.
“The purchase price was £275,000. The cost of the refurbishment, finance and fees was £120,000. In total the project therefore cost around £400,000.
“We undertook a RICS valuation upon competition of the upgrade. It was valued at £735,000.
“We will look into refinancing the property at 70% (£500,000). This then provides £100,000 tax free cash back.”
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