An office to residential conversion using the rent-to-rent strategy

How an investor converted a property he didn’t even own!

By Raj Beri, Co-editor, YPN

Start talking about office to residential conversions and people immediately envision a great big office building associated with mega costs to purchase and then convert to residential apartments. If you are starting out, this can be pretty scary! But how about a small commercial to residential conversion, done on a R2R basis as a starting point?

In his article in the October 2021 issue, Stephen Baxendale takes us through the process he has followed to secure such a deal. Even more impressive is that Steve has only just started investing in the UK (he’s part Aussie but we won’t hold that against him) and is quickly establishing himself as a bit of an expert on purchase lease options.

He has provided some excellent tips for anyone who wants to emulate what he has achieved so far:

Tip 1: If you need to invest remotely, don’t be afraid to partner with somebody because you may have skills that will be of benefit to the partnership. Think about finding a partner to work with and don’t let distance be an excuse.

Tip 2: Evaluate your tenant demographic and build the specification of the property around the tenant type. My tenants won’t pay more for an en-suite room as they are on a tight budget, so we give them what they can afford.

Tip 3: Don’t just rely on your own network. Have conversations with people and tap into their network to find out what they want and whether you can work together.

To read the full article and details of this unusual case study, subscribe to YPN magazine

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