Scaling Up After the Pandemic: How We Expanded Our Property Investment Business in 2021-2022

By 2021, the world was still feeling the effects of the COVID-19 pandemic, but for us, it was the year we decided to scale up our business in a major way. Having successfully navigated the challenges of 2020, we were ready to take on bigger projects, push our limits, and expand our portfolio.

This period wasn’t without its setbacks—two of our biggest conversions turned into major learning experiences. But despite the obstacles, we finished the year stronger, and by 2022, we had taken our business to a whole new level.

Stepping Up: Our First Big HMO Conversions

We started 2021 by sourcing two ambitious HMO projects:

1️⃣ A 3-bed house conversion into a 7-bed, 7-en-suite HMO

• This involved a rear extension and a full dormer loft conversion to maximize space.

2️⃣ A semi-detached 3-bed house with a large plot

• We planned side and rear extensions and another dormer loft conversion, aiming for an 11-bed, 11-en-suite HMO.

These were our most complex projects to date. But with COVID-19 still disrupting the industry, nothing went as planned.

Delays, Mistakes, and Unexpected Costs

The first project dragged on far longer than expected. Getting an architect, planning consultant, structural engineer, builders, HMO officers, and building regulations officers all aligned was a nightmare. Constant cancellations due to COVID-19 meant that a process that should have taken a few months stretched to almost a year before construction could even begin.

Even after we started, challenges kept coming. The dormer extension wasn’t built correctly, meaning it no longer fell under permitted development rights. Thankfully, we found a skilled architect who secured retrospective planning approval, allowing us to finally complete the 7-bed, 7-en-suite HMO as planned.

The second project also faced setbacks—planning permission was harder to secure than we had anticipated. Instead of the 11-bed HMO we had aimed for, we were only approved for a 7-bed, 7-en-suite HMO. The biggest issue was the side extension, where we simply couldn't get the width and size we needed.

Adding to the challenges, construction costs skyrocketed due to post-pandemic inflation. The cost of materials and labor had increased significantly since we first purchased the property. After a year of trying to get planning permission, the numbers simply didn’t work anymore.

Instead of proceeding with the 7-bed HMO, we pivoted to a 4-bed, 4-en-suite HMO within the existing structure. In the end, this worked out well, as rising property prices boosted the value of the property. It remains a profitable 4-bed HMO to this day.

Going All In: 13 HMOs in One Year

By the start of 2022, we had learned some hard lessons—but instead of slowing down, we doubled down. In one year alone, we purchased 13 HMOs.

• Some were existing HMOs, already cash-flowing.

• Others were HMO conversions, where we added value through refurbishment and expansion.

But securing properties had become much harder. House prices were climbing rapidly, making it nearly impossible to find good deals. That’s when we decided to adjust our strategy.

We noticed that HMOs and standard houses were selling for similar prices. Instead of competing for new properties, we partnered with investors to purchase ready-made HMOs, allowing us to move faster and scale up efficiently.

The Game-Changing Portfolio Deal

One of our biggest moves in 2022 was purchasing a portfolio of seven ready-made HMOs in Essex.

• These properties ranged from 4-bed to 6-bed HMOs.

• The total purchase price was £2.65 million.

• The portfolio cash-flowed around £8,000 per month.

To make this happen, we partnered with an investor who provided the capital. By splitting the cash flow, we secured the entire portfolio—a deal that significantly boosted our business.

Our Biggest HMO Conversion Yet

In addition to the portfolio deal, we took on our largest HMO conversion at the time:

• A 4-bed residential house, which we converted into a 9-bed, 9-en-suite HMO.

• Unlike our earlier projects, this one went smoothly—planning approval was secured without issue, and the refurbishment was completed on time.

• The property’s valuation exceeded expectations, making it one of our best projects to date.

Lessons Learned & The Power of Adaptation in Scaling a Property Business

Looking back, 2022 was one of the most intense years of our journey. We were constantly busy, moving from one project to another, juggling financing, planning, and execution all at once. But through all the chaos, we learned some key lessons:

✅ Adaptability is everything – The property market is always changing, and the ability to shift strategies quickly is what allowed us to continue growing when many others struggled.

✅ Strategic partnerships accelerate growth – By working with investors and splitting cash flow, we were able to scale far beyond what we could have done alone.

✅ Patience and perseverance pay off – There were moments where deals nearly fell apart. For example, with the Essex portfolio, we almost lost £50,000 in costs before securing the deal. Hard work and persistence made the difference.

Despite rising prices and increasing competition, 2022 ended up being a record-breaking year for us. We grew faster than ever, found ways to secure deals in a challenging market, and proved that flexibility and smart financing strategies are key to long-term success.

What’s Next?

After navigating the challenges of scaling up post-pandemic, we realized that property investment had evolved into something much bigger—this was no longer just about buying and converting houses; we were running a full-scale property business.

In our next blog post, we’ll dive into what it takes to move beyond being a property investor and build a sustainable, scalable business. We’ll cover how we structured our operations, built a strong network, and developed systems that allowed us to keep growing efficiently. Stay tuned!

Got questions or thoughts? Drop them in the comments—we’d love to hear from you!