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Hi Hubbers,

First post on here so please go easy on me :) 

I'm 27 (no major commitments) and have £30k to start building a portfolio of rental properties... I'm currently looking to buy my first BTL property around Leicester / Wolverhampton, so thought it would be great to hear everyone's opinion on sourcing good yield properties (+8%). I'm not too worried on what type of property / location, etc. as long as it's not HMOs (I want to keep risks relatively low and be hands-off where possible).

Additionally, if anyone's got any particular experience with great property lawyers and lettings management' agencies that you'd be happy to share, I'd love to hear from you!

I will keep you all updated with my ventures (providing I have no mental breakdowns :))

Thanks all!
Rafael

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  • 2 weeks later...

Hey Rafael,

Not much to say about where you're buying or the yield you're going for but I was in a very similar situation myself in 2014.. £30k and what best to do?? I bought a tired flat just on my money limit and used credit card and overdraft to do a minor refurb, furnish and run as serviced accommodation.

Just everything involved with buying the first property taught me so much, making the first step is the hardest. Some tips I can give are:

  • Go to a local meet-up for recommendations on solicitor, mortgage broker (use one) and accountant.
  • use one of the credit check agencies to make sure there's nothing abnormal in your credit rating and look at resolving now if so.
  • Try and buy a property you can add value to, not necessarily straight away but in the future too. My first one I changed floors and repainted which made a big difference, 5 years on I've just moved the kitchen to add a bedroom and released more equity.
  • Look into a credit card to give you some wiggle room if refurb goes over budget. (wait until mortgage approved before applying for credit cards as the searches may affect your rating)
  • View as many properties as you can to get a feel for what is a good deal or not. Gather data yourself on the details of properties for sale and what they sold for in your area to get an idea of £/m2 etc.
  • What's your goal? If additional income go for high yield (you won't get as much capital growth), if you don't need the income too much now look at areas where capital growth may be better. The saying goes you don't get rich from rent but from capital growth. There's also advice not to ever rely on capital growth so there's two helpful conflicting opinions :D (I suppose the rule is make sure whatever your goal is to align this with your strategy and your appetite for risk).
  • I bought in an area local to me that I thought had potential, being local I had a lot of knowledge of the area and also could spend a lot of time doing renovation work and checking in guests etc. with little travel time.

Hope some of that helps,

All the best

Ollie

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I'm from Leicester and I just bought my second BTL in Ratby.  The ROI is okay @ 5% at the mo, the only reason I bought it is because with a light refurb I should get enough equity to help me snowball.  I think you'll struggle to an 8% ROI with a vanilla BTL.

Good luck!

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I would say keep listening to this podcast and educating yourself on all things property and business. I started listening to the property hub when it started which gave me the knowledge to invest in Manchester back in 2015. The first property came with a tenant in situ, earning 8% from day one and only a £20k deposit (understandably prices have changed). That flat has not seen one void day and I have benefitted from both rental and valuation growth. Since then the portfolio has snowballed into financial freedom, so the moral of the story is to understand what you are investing in and take action.  

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30K will give you a rough property price of 100-110K if you take a 75% mortgage and consider legal fees and all that. 

Thats good money to start with a 2 bed flat in lots of places round the country. I personally have invested in Milton Keynes for that sort of money and am happy with that. Obviously, you need to keep your goal and your strategy in mind. Most these flats wont rise much in value but give you a very healthy roi. Anyway, good luck. 

A

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Hello everyone

This is anand. I am in similar situation with £35000 to invest. I came across aran curry portfolio builder where they do everything for you including sourcing best (positive cashflow property), finding tenants (they provide rental guarantee), and manage tenants (on an average they claim their tenancy is around 5 years). What do you guys think about it? is it too good to be true? This person claims to have 200 properties of his own and helped others buy over 1000 properties. I read their reviews and all seems good. Please share your opinions

 

Regards

Anand

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On ‎4‎/‎26‎/‎2019 at 11:18 AM, barry grinham said:

I keep hearing the term "Vanilla" property,? Can someone please explain

Barry, there's a lot of acronyms and buzz words in property, especially in this thread so don't worry, although I knew in my head what this is I researched to get a proper definition and some other helpful info also found here (also a mortgage jargon page in the link):

https://www.mortgagesforbusiness.co.uk/property-finance/customer/buy-to-let-mortgages/buy-to-let-explained/buy-to-let-properties/

In short, focus on ROI & net / gross yield ensuring capital growth and cashflow is optimised in either vanilla BTLs, SA or HMOs to ensure you snowball to financial freedom with a good power team :D

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On ‎4‎/‎28‎/‎2019 at 12:05 PM, anand1209 said:

This is anand. I am in similar situation with £35000 to invest. I came across aran curry portfolio builder where they do everything for you including sourcing best (positive cashflow property), finding tenants (they provide rental guarantee), and manage tenants (on an average they claim their tenancy is around 5 years). What do you guys think about it? is it too good to be true? This person claims to have 200 properties of his own and helped others buy over 1000 properties. I read their reviews and all seems good. Please share your opinions

Hi Anand, I am always wary of going down the route of a business that does everything for you, there will be profit in it for them which is fine but doing it yourself you'll learn a whole lot more and that profit will be yours.

Why don't you look at what you can find and do a forecast of profit and loss on that then compare to an example on what they can provide and what you'll end up with in your pocket with them.

Cheers

Ollie

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On 4/22/2019 at 7:02 AM, ollie h said:

Hey Rafael,

Not much to say about where you're buying or the yield you're going for but I was in a very similar situation myself in 2014.. £30k and what best to do?? I bought a tired flat just on my money limit and used credit card and overdraft to do a minor refurb, furnish and run as serviced accommodation.

Just everything involved with buying the first property taught me so much, making the first step is the hardest. Some tips I can give are:

  • Go to a local meet-up for recommendations on solicitor, mortgage broker (use one) and accountant.
  • use one of the credit check agencies to make sure there's nothing abnormal in your credit rating and look at resolving now if so.
  • Try and buy a property you can add value to, not necessarily straight away but in the future too. My first one I changed floors and repainted which made a big difference, 5 years on I've just moved the kitchen to add a bedroom and released more equity.
  • Look into a credit card to give you some wiggle room if refurb goes over budget. (wait until mortgage approved before applying for credit cards as the searches may affect your rating)
  • View as many properties as you can to get a feel for what is a good deal or not. Gather data yourself on the details of properties for sale and what they sold for in your area to get an idea of £/m2 etc.
  • What's your goal? If additional income go for high yield (you won't get as much capital growth), if you don't need the income too much now look at areas where capital growth may be better. The saying goes you don't get rich from rent but from capital growth. There's also advice not to ever rely on capital growth so there's two helpful conflicting opinions :D (I suppose the rule is make sure whatever your goal is to align this with your strategy and your appetite for risk).
  • I bought in an area local to me that I thought had potential, being local I had a lot of knowledge of the area and also could spend a lot of time doing renovation work and checking in guests etc. with little travel time.

Hope some of that helps,

All the best

Ollie

Just to say, I think this is all excellent advice.

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