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Found 12 results

  1. Hi All, Sorry for the long post. I'm totally new to this and was hoping to gain advice from you all, so any wisdom imparted would be sincerely appreciated. I'm interested in beginning my property investment journey after gaining much confidence from the contents on this wonderful site. I'm from Birmingham but live and work in London. Initially, I was looking for a high yielding B2L property in somewhere like Sheffield or Nottingham, to potentially net between £500 - £1,000 per month cashflow to generate some passive income. As a newbie, I want a hands off approach, interested in modern properties that are immediately ready to rent out; but have recently learned my cousin works on upgrading properties so thats a bonus for some flexibility in regards to potential house flipping. My strategy has now potentially changed as my Mom (currently living in a 3 bed council house in Bham) needs to be rehoused, due to her current area and neighbours being far from the best to say the very least! So in saying this, I now intend to purchase a mortgage for a place for her to stay in Bham (2-3 bed house or 2 bed apartment in city centre) that will see good capital growth in the long run as the plan is for her to live there for the next 10, 20, 30 years plus. So this would be a long term investment. I have around 30K to invest at the moment, and ideally would like for the monthly repayments to be low because she'll be living there alone (would H2B be pertinent here?). I don't intent to make profit off Mom or for her to have to share, but at the same time, I don't want to have to go into my own pocket to top up what she cannot afford as I am already renting in London. I did a mortgage in principle with my bank the other day and they said I could borrow in the region of 280K. My credit is pants at the moment so I'm using the next 9-12 months to increase my chances of getting a 5% mortgage next year although I would really want to buy something in 2019. So I suppose my questions are: Is what I'm pondering ambitious or outside the realm of success with the 30K capital and poor credit rating I have? Outside of transport links, being close to city centre, good schools, shops/supermarkets/parks/having a drive and garden etc, what other key criteria do successful property investors look for, that bring confidence that capital growth is very likely to come down the line? After looking at Rightmove and speaking to local estate agents and viewing properties that fit your criteria for example - what are the differentiators or main drivers that prompt an investor to push the green button and buy? Should I maintain my original plan, and find a 1-2 bed B2L property in a high yielding/high growth area like, Leeds, Liverpool, Nottingham, Manchester, Sheffield and essentially keep saving while banking the £500 - £1,000 per month cashflow - because in a couple of years I'd soon generate another 30K to get her the property in Brum - and in that time I would have gained some equity/growth in the B2L property. I do plan to build a property portfolio so when you have a strategy for acquiring multiple properties; for tax reasons, is it better to purchase them under a limited company rather than as an individual? When people say, test your numbers thoroughly, what exactly does this mean? How can you test that your strategy for a B2L monthly cashflow goal is truly feasible? Would the H2B scheme benefit me in for my circumstances? Many thanks
  2. Happy Easter All, I was curious what ROI percentage and net yield do you look from from a buy-to-let? Thank you in advance. Joe
  3. Hello, My name is Paul Deehan, I'm 36 and grew up in Sheffield, UK. For the last 12 years, I worked on Private Super Yachts as a Private Chef. I've had the fortune to travel around the world and cook for lots of celebrities, business tycoons and world leaders. In 2010, I read the famous, Rich Dad, Poor Dad book and since then I've been slowly building my property portfolio. Since around this time last year, I was recommended the property podcast by a friend and have to thank both Robs and the team for 1, being awesome and 2, giving great honest value and advice through their work. Before listening to the property podcast, I had 3 BTL's with a passive cashflow of £450 per month. I now have 5 BTL properties, all in Sheffield, with a 70% LTV and passive cash flow of £1400 per month. I'm booked on the 10th of June, Property Summit in London and I am very much looking forward to meeting both Rob's and other investors. My next actions will be, buying my 6th BTL, viewing on Friday and buying from a friend so all being well, I'll buy in the next few month. Thank you for reading my introduction and I'm looking forward to connecting with you on this forum soon. #beyourbest Paul Deehan
  4. Hi Everyone, I am brand new to the world of property investment but have been involved in construction all my adult life. I run a Refurbishment/Renovation business in the South East. My goal now is to start a portfolio that will allow me to have more free time. I am keen to learn and eager to succeed but would greatly appreciate any help or advice on offer for someone new to the game. My strategy would be to buy BTL's that require some renovation so I can add value and keep the cash flowing. I am self employed and so is my Fiance although we have equity in our current property our employment status has limited our lenders. I would love to hear if anyone has had a similar situation or any advice on getting started. Thanks in advance. Scott
  5. Hi, I was wondering if any experienced rent to rent investors could advise me what is a realistic cashflow for a single let and for multi-let? I know mark and Brad at Goliath describe rent to rent as good for cashflow but in my head I can't understand why a landlord would rent his / her property out with a discount of more than about £100 or else why would they not just rent to tenants themselves or hire a letting or management agency for about 10%? I'd love to hear from anyone what kind of cash flow is achievable. Thanks, David.
  6. Hey Fellow Investors Enthusiasts, I find myself in a scenario where I have 2 options both with their own pros & cons. I would be intrigued if you could provide me with your opinion on the matter; the 2 options are as follows. Option 1 Should we extend our townhouse house for ourselves 3 people & convert the other part of the house into a 3-bed ensuite 1st-floor apartment to rent out. Pros; add value, impressive yield, Cons; couldn’t sell the house Or option 2 Buy a 3 bed for £50.000 to rent out, at this moment in time we don’t have access to credit, at this stage. Pros; sell the house if needs be, access to credit, Cons; not as lucrative. Just to note; we have a small flat on the grounds that provides a rent. Along with a commercial business in the front room of the townhouse that provides a rent also. The idea would be to compile these 3 identities into an Ltd company in order to build a portfolio & access to credit. Is there any other alternative? Thank you for viewing, Regards Tom.
  7. Hi everyone, I’m Rob and I’m based in Glasgow. I’m new to property and my interest was sparked last year when I bought my own house. I found a love for negotiation that I didn’t realise I had and managed to save myself 15 k below home report which I thought was good. I found it exciting so looked into property more. I'm just married so most of my capital was spent on my wedding so now slowly building back up so I can invest myself. Meantime, I am looking at boosting my capital by helping other people and source deals. I’m interested to hear what people’s investment criteria tends to be? I’ve looked mostly at finding 15-20k below home report with potential returns of 10% annual cash flow. Have found a few and Scotland seems to still have good deals available but want to gauge a consensus for what people tend to look for so I then know what to go and find. Do most people want similar things? Thanks guys! Rob
  8. Hi, this is my first time posting on here, and would love to get some opinions! I've got a couple of BTLs, own my own home, and am expecting by the summer to have a reasonable pot of cash (£300-400K) to accelerate my property journey. The thing is, I have separate non-property business so I don't have a great deal of time (evenings & weekends). I'm trying to work out the best strategy both for cashflow now & compounding/reinvestment longer term, but don't want to directly project manage refurbs, or HMOs. I'm also comfortable that I'd be able to assemble a good team (my other business is recruitment). Option 1 - work with a company like Fossey Taylor to build my portfolio, they will manage refurbs on standard BTLs plus the odd HMO in the midlands, add value, but their fees will eat in heavily to the cash recycling. I love that it's totally hands-off, but am not yet totally convinced on the returns. Option 2 - buy high-end city center apartments for AirBnB, kit them out with nice kitchens etc.. Initial cashflow would be best, but there's less chance of quickly recycling deposits, and who knows what legislation will change surrounding short-term lets as the sector keeps growing / putting pressure on standard rental supply. I already have an agent I trust who could get kitchens sorted & manage them for me. Option 3 - buy a plot of land & build to rent. I can get a good project manager for this, it allows for profits built in / cash recycling, it's possible for me to get financing to do it, but there's a significant delay on cashflow (which I could live with but might be stressful in the interim). I've run the numbers, and given the access to financing the development route clearly has the most potential (but also requires the most education & involvement from me). It is also the most attractive from a tax perspective. No doubt there are factors I've not considered through lack of knowledge. What would other people do in this situation? Any thoughts or opinions would be gratefully received... Thanks, Tom
  9. Hi All Pleased to introduce myself. I am 27 years old and have been in full time employment for nearly 4 years in Liverpool. I currently live at home, but I am looking to acquire my first property in Liverpool city centre with a view that the property would make a good investment (Capital growth and potential to let profitably in the future) whilst I will live their myself for the next 3-5 years and may consider sub-letting the spare room if i decide to generate extra cash for investment. In the last 3 months I have viewed circa 25 properties in Liverpool city centre and have a good feel for the different areas within the city and how to evaluate if properties cash flow well. Unfortunately I haven't yet acquired my first home/property despite having an offer accepted previously. I enjoy listening to the property hub podcast and I am very keen to get more involved with property but not quite sure yet how. if anyone wants advice on Liverpool then I'd be happy to advise. Thanks for reading. Regards Jack
  10. Dear Hubbers, I am a newbie wannabe investor who is looking to create long-term wealth via property investment in a passive way. I am running the numbers and i don't seem to be able to make it work. As a new investor, my first BTL will need to be in my name, I have been advised by an RMP recommended broker, which means 40% tax band. I have attached the spreadsheet summary I am using where you can check the ROI when considering tax is Negative based on the assumptions on the table below. Even with a 20% tax band numbers would not work. All this is based on a buy of 80% BMV and doing it through RMP My question is, what am I missing to make it work? I am going crazy here but I cannot seem to figure it out by myself. Thank you ever so much for your responses in advance. Sergio.
  11. Hi all, I'm really having trouble getting the cash flow to look positive in this hypothetical example, although I know many of you are managing very well. I'm overseas, therefore I will have to rely on a local rental management agent to do everything. If I put in all the figures I can think of, the net income/mth is almost zero. If the bank rate goes up just 0.25%, then the net IS zero!!! I'm being quite optimistic with a 5.4% yield. So where am I going wrong? This just doesn't stack up. I would be relying 100% on the asset increasing in value. Note also that, as a second property, any BMV gain is all but wiped out by the stamp duty and other fixed costs. Purchase Price 200,000 Market Value 220,000 Fixed costs Solicitors fees 1,500 Stamp Duty 7,500 Mort arrangement 2,200 Total addt'l costs 11,200 Total Capital 91,200 Total Borrowed 120,000 Monthly summary Rent 900 Mortgage on 60% 274 Agent fees 108 Management etc 100 Repairs 100 Void periods (1mth/yr) 75 Council Tax 200 Buildings Insurance 15 Net income before tax 28 Standard Yield 5.4%
  12. Hi, I'm looking for advice going forward with regards to living off my rental income and future remortgages. I'm thinking forward and looking at the possibility of living off my rental income in the near future. I'm looking to save up a lump sum to live off initially and would like advice from full-time property investors. 1st question is, once living solely on rental income, how easy is it to remortgage your BTL's and home mortgage? Have you done this? which lenders do it and what criteria are they looking for the least? and what's a typical rate of the mortgage? Most of my BTL's are on a 5 year fixed, 70% LTV and home mortgage is remortgagable in August 2018, 50% LTV. 2nd question is, Again living solely on your rental income, how many BTL's or cash flow would you have in your personal name before using a LTD company for other purchases? Would you buy in your personal name until your near the 40% tax rate? Thank you so much for your advice. Have a great day Paul
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