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Good afternoon, I hope you don't mind me reaching out for some advice. First time investor here so please go easy on me I have around £100k to invest in a cash purchase but I'm still unsure whether to go for a property of around £100k and recycle the money 6 months later with a BTL mortgage or to buy two smaller 2 bed BTL properties worth a much lower price "up North". I am interested in the following (BMV?) deal in Burnley BB11 as a cash purchase with a view to mortgage it at 75% at the earliest possible stage. Comparable sales (2019/2020) in the area were between £97.5k - £110k. I am in the process of doing my own due diligence but I would appreciate your views. Looking at the figures below, the Solicitor / Conveyancing fees appear a little low. It appears maintenance & repair fees aren't built in either? Many thanks, Tom Contingency @ 20%

HI, I would greatly appreciate some advice on this property that I have made an offer on and got accepted. It is within the Royal Leamington Spa area and not too far from amenities (15 mins from station, 15 mins to main town centre, near attractive parks etc.). It's not the greatest yield but this is takes into consideration some growth factor and aimed at professional tenants. The option for students based in Warwick and Coventry, and the hospital is there as well. Interestingly the property was priced at 250, but reduced to 220 within the same month for a quick sell. We had a look and the condition is very good, not expensive work required really and I believe it is priced well. The kitchen and bathroom could do with some small cosmetic touch ups, some carpet replacements etc. to help attract tenants. My research shows rent has declined by 5% since 2-17. I've been told via a few local agents I can expect from 825 to 900 pcm. I am being conservative and using 800 pcm in my calculations: Property price £220,000.00 BTL mortgage LTV 75% Interest rates 2.5% Investment term (years) 25 Monthly rental income £800.00 Buying solicitor costs £1,500.00 Mortgage arrangement fee £1,644.00 Annual maintenance £800.00 Annual service fee 0.00 Initial work required £8,000.00 Management 10% Total Capital Required £72,744.00 Mortgage Required £165,000.00 Gross Rental yield 4.36% Net rental income /yr £2,734.98 £227.92 ROCE / yr 3.76% Rent/mort payments 2.327272727 Expenses / term £161,625.49 Rental income /term £230,000.00 Annualized pre-tax 5.18% Annualized post-tax (individual) 3.51% Annualized post-tax (ltd) 4.47% Purchase stamp duty 6,600.00 mortgage deposit 55,000.00 total cost (inc all fees) 72,744.00 Rental Income Ideal income /yr 9,600.00 800.00 Vacant deduction 400.00 2 weeks Actual rental income/yr 9,200.00 Expenses I expect: BTL mortgage interest/yr 4,125.00 343.75 maintenance /yr 800.00 gas certificates /yr 80.00 landlord insurance /yr 170.00 elec certificate /yr 80.00 management fee /yr 960.00 finders fees /yr 250.00 total expenses / yr 6,465.02 The problem I have is if I stress test this at 5% mortgage, then the whole thing becomes a liability unless I compromise and manage the property myself (only 40 mins away). Also, being a terraced there could be expensive repairs I am a contractor so hoping to use a ltd company mortgage.. At the same time the city is attractive to professionals, students and growth potential (appreciate that is speculative). So what do you think? Is there not enough room for error and I am scraping the barrel here?

Hi all, I have 100k that I am looking to invest into property. I have seen a first property which I like the look of and would be grateful for any thoughts/advice on my numbers as set forth below (thank you to the member who posted the spreadsheet link!) One of the things I am wondering is whether it is better to opt for a 5 year fix @ 3.5% or a 2 year at 3%. (I have assumed 5 year fix @ 3.5% for the purposes of the below and have just use the initial rate on the basis that I will remortgage at the end of the fix but maybe I should assume something higher than 3.5% to take account of rising interest rates at some point?). Or indeed whether I put in 35k as a deposit and then get rates of 2.95% and 3.34% respectively - which results in a +0.2% ROI. Many thanks all!

Hi all, Please can someone provide some feedback on my property I have recently purchased for a BTL with respect to my Net yield and ROI. Purchase price £72,000 Total investment £22500 Rental income - £550 - £600 based on similar properties that have let in the area Ground rent & Service charge - £540 Annually ROI - 13.9% Net Yield - 4.35%

Hi everyone please can you critique my deal we are looking at a multi-use investment property. Its a large out of town semi-detached self contained shop currently trading as a nail/tanning/beauty salon, Been trading for 10 years just signed a new 5 year lease on a very busy road with lots of shops non currently vacant with one bed self contained flat above also currently let returning £10320/ year both areas need some work windows/doors flat roof need attention and some damp issues the property is on the market at £99,950 we have offered £88,000 it has an Indian takeaway next door which is making it more difficult to mortgage the deal we have been offered is 65% loan to value at 7.99% interest only. we are a cash buyer but would like to remortgage to pull our capital back out The problems i can see are resale in the long term and loan terms

Dear All, A newbie to the site, so hope to be able to add input and experience going forward, though alas for now I’m going to be a net taker [hopefully] of some worldly wisdom from people here. Overview: I’m not entirely new to BTL, having held a ½ share with a family member of a 5 bed HMO let to professionals in Southampton for the last 6 years. To date I’ve rarely had much to do with the place as the family member lives close and in addition to a wider portfolio he holds in the area, has self-managed this property alongside his others. We are now at the point of wanting to buy the other out, most likely by re-financing and I’m seriously considering taking the place on myself and self managing, with him as someone that could help out if needed, he has a network of handymen etc. that can be called upon for repairs etc. I live in London. Details: We bought the place for 215k and it has 165k interest only mortgage outstanding. Rental income is currently £2,200 PM All bills [council tax, gas, electric etc.] are included in rental for tenants, the monthly cost of these is £520PM Mortgage interest currently is £482 PM So this gives a net income of £1,198pm before tax We both invested 50k into the property initially, covering deposit on 75% LTV and then re-furb costs [this was pretty extensive, pretty much an entire gut out of the place]. So at the moment the ROI is about 14% before tax. To buy the other out, one of us would need to release 50k equity, via re-financing. We had the place valued around a year ago and agents said given the re-furb and offering it to the market as a tenanted BTL with a track record, it would be worth at least 275k. Though this would be less if you were going to sell to a homeowner vs. another investor, thus from a re-financing perspective there is equity there that can be taken out. Prices in the area have remained relatively flat, so this 275k valuation probably still holds and it maybe now worth a little more. As anyone on here investing in Southampton knows, whilst yields are very good, capital growth isn’t. If I were looking at taking it over I would most likely look to re-finance at 75% LTV, try and push the valuation if I can to 286k, meaning I could take out the 50k to repay the other party and not have to put anything else in myself, thus keeping my initial investment as was at 50k. With the new mortgage cost, this would end up returning around £840pm before tax, so circa 19% ROI on 50k invested. In light of the proposed changes in the budget last week, I would also propose transferring the property to my wife’s name, she currently doesn’t work, so this would minimise the tax due to utilising her currently not used personal allowance. I guess my questions are: § Am I missing anything fundamental here in considering taking this on in the above? § Does the overall proposed takeover strategy seem / feel right. Would people have different strategies, e.g re-finance on a higher LTV, 80/85%, which would produce a lower monthly net cash position but a greater ROI as you could take more of the initial 50k invested out? § Is it right to look at the 275k valuation when it’s skewed just towards investment purchasers, should a figure be taken as a median between a home owner purchaser and an investor? Cleary would be a lower figure, requiring one of us to stump up more cash to buy the other out? § Am I mad to consider taking this on and self managing remotely? Clearly adding in letting fee’s reduces the attractiveness of the deal? Appreciate that’s quite a lot of info and quite a lengthy first post, so apologies but any perspectives very welcome. Thanking you.