Project York: 7-Bed HMO With Infinite Return
“All money out” or “no money down” are not phrases that we throw around lightly, but we actually achieved it with Project York. Sitting modest within a row of terraced houses, this cream-rendered “Tardis” of a property gave us one of the best returns on investment that we've delivered in seven years of doing property.
Photo by Abacus Property Group, Project York (2021)
The story began with acquiring the property in 2021 for a mere £190,000. Sold via power of attorney (owner was sadly medically incapacitated), it was a standard 3-bed home with 2 reception rooms; structurally sound but in a sorry state. First step was the planning gain to convert from C3 domestic to sui generis 7-bed HMO which included air space development via a loft conversion. After a planning debacle involving a debate with the planning committee and unease from the neighborhood of another HMO; refurbishment started and over the following months it was transformed into the luxury HMO that it is today. Operating ahead of the curve, we introduced to the market large fully furnished rooms with private ensuites (some with studio kitchenettes), as well as generous communal space with a distinct co-living ethos.
The Numbers
Project York figures as of 2026
Add the purchase and development together and simply put you're looking at £390,000 all in (excluding operating expenses and interest). Once the works were finished, we refinanced the property based on its new investment value (GDV); and that's where this project earns its headline. The refinance returned the full amount we'd invested into the deal with additional capital returned (i.e. profit!). When there's nothing left in the deal to measure a return against, the Return On Investment (ROI) isn't a percentage anymore; it's infinite.
Investors backed this one to the tune of £100,000, on a fixed return. That's the kind of trust that gets a project like this off the ground in the first place, and it's the reason we can point to numbers like these when we talk about what backing an Abacus deal actually looks like.
It Wasn't Straightforward
Worth being honest about this part: Project York took fourteen months from start to refinance, and not all of that time was smooth. Planning ran longer than we'd budgeted for. The build itself hit delays. We also ran into quality issues after the first phase of work — the initial contractor wasn't up to the standard we needed, and we ended up bringing in our own team to sort it out properly. None of that is unusual in property development, but it's part of the story, and it's part of why the eventual numbers mean something.
Photo by Abacus Property Group, Project York pre-development (2021)
Getting Through Planning
Project York already had a Certificate of Lawful Development in place (R22/0026), covering the loft conversion and the change from a C3 dwelling to a 6-bed HMO — all done under permitted development rights. The planning application was for a further change of use, to a 7-bed HMO (Sui Generis), using an existing reception room as an additional bedroom. No objections came in from Highways, Ecology, Environmental Health, or Works Services.
Photo by Abacus Property Group, Project York pre-development (2021)
Parking was the main objection raised by residents and local councillors, which is fairly typical for HMO applications in Rugby. We came prepared: our data across other HMOs we manage locally shows an average of 35% of tenants own a car. Applied to a 7-bed property, that's roughly three vehicles — well within permit limits even if the street became permit-controlled. Our 9-bed HMO on St John Street, two minutes from York Street, backed this up in practice, with only 3 of 9 tenants driving. We also built in cycle storage to make the car-free option genuinely easy.
Room sizes weren't a sticking point. Every room in the property comfortably clears the 10m² minimum, and communal space goes beyond what's required. We work closely with the council's HMO officer on every application, which means we're rarely scrambling to meet a standard — we're usually already past it.
Quality of tenancy was the other point worth addressing head-on. We only let to working professionals — a mortgage stipulation at the time, but also one that carried less risk with more assurances on affordability. We vet tenants extremely carefully, and we go further than most landlords would: welcoming get-togethers when someone moves in, so new tenants feel part of the house from day one rather than just another name on a tenancy agreement.
Where It Leaves Us
Project York is currently generating £59,700 a year in rent, fully let, on a property that returned its own investment and then some. It's not a deal we expect to repeat exactly — the market has shifted since 2021, and deals at this level of return are harder to find now. But it's a clear example of what's possible when the fundamentals, the planning strategy, and the execution all come together, even when the road to get there has a few bumps in it.
That said, if you're a landlord or investor who's cautious about jumping into HMO development because of stories like the contractor issues we had here, the takeaway isn't ‘avoid it.’ It's ‘have the right team lined up before you need them.’ We caught the problem, brought in people we trusted, and the numbers still landed. That's usually the difference between a project that stalls and one that just takes a bit longer than planned.
If you're weighing up whether a deal like this is worth the risk, that's exactly the kind of conversation we have with investors before anything gets signed — what could go wrong, and what the plan is if it does.
If Project York is the kind of return you'd like your money working towards, get in touch with us. We'll talk you through what's currently in the pipeline and whether it's the right fit.
We're Abacus Property Group, and we deliver end-to-end HMO and BTL projects across the West Midlands for investors who want returns like Project York's — without managing the build, the planning, or the headaches themselves. Get in touch if you'd like to know more.
