Turn 3-Bed Houses Into 10-Bed Cash Machines πŸ’°

The Real Estate Investing Club

The Real Estate Investing Club
Turn 3-Bed Houses Into 10-Bed Cash Machines πŸ’°
Oct 16, 2025 Season 1 Episode 593
Gabe Petersen

Join an active community of RE investors here: https://linktr.ee/gabepetersen

SCALING STUDENT HOUSING TO 100 MILLION 🏠

In this episode of The Real Estate Investing Club podcast, I sit down with Sree Varma from Varma Properties Group to break down his incredible student housing investment strategy in the UK. If you're looking for a real estate investing strategy that generates massive cash flow and scales quickly, this conversation is packed with actionable insights you can implement immediately.

Sree shares how he transforms ordinary residential properties into premium 10-bed student apartments using the BRR strategy (buy, renovate, refinance). This isn't your typical rental property approach. By focusing on student housing near universities, Sree creates multiple income streams from a single property, dramatically increasing cash flow compared to traditional buy-and-hold investments. πŸŽ“

THE STUDENT HOUSING ADVANTAGE πŸ“ˆ

What makes student housing such a powerful real estate investing niche? Sree explains why having 10 tenants in one property instead of one creates incredible financial advantages. While traditional landlords struggle with government policy changes and rising interest rates, student housing investors like Sree are thriving with rental rates between 900 to 1,000 pounds per room per month. That's roughly $1,200 USD per room in a market outside of London.

The key is creating premium experiences that students actually want. Sree doesn't just provide housing; he creates a lifestyle brand with Netflix, Spotify, cleaning services, backyard gyms, pizza nights, and private WhatsApp communities. This community-focused approach allows him to charge premium rents while maintaining high occupancy rates year-round.

FINDING DEALS WITHOUT MARKET COMPETITION πŸ”

One of the most valuable parts of this conversation covers how Sree generates deal flow without competing in the open market. Through strategic networking with local estate agents, probate agencies, and repossession companies, he gets first access to properties before they hit the market. Because he's a cash buyer who can close within 28 days, sellers come directly to him. This is personal branding and networking at its finest in real estate investing.

PROPERTY CONVERSION STRATEGY πŸ—οΈ

Sree breaks down exactly what he looks for in properties: minimum 100 square meters with opportunities for loft conversions and rear or side extensions. By using permitted development rights in the UK, he avoids lengthy planning processes and can execute renovations quickly. His team converts three-bedroom houses into 8-10 bedroom student apartments, with each room featuring en-suite bathrooms and premium furnishings.

The numbers are compelling. Sree typically buys properties for around 500,000 pounds, invests 150,000 to 200,000 pounds in renovations, and refinances at 750,000 to 800,000 pounds. With a 75% mortgage on the new value, he pulls most or all of his capital back out to reinvest in the next deal. This is the BRRRR strategy working at scale.

Want to learn more about our guest? Connect here: sree@isportconnect.com

Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at ht

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