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christurner

Just Starting Out, Currently in Derby

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Hello everyone, I'm Chris.  Three years ago I became an 'accidental' landlord when I moved from my first home to my second and began renting what was my first home.  My mother-in-law now lives in that rental property.  Having family renting the property has caused me huge financial challenges with getting finance and a mortgage broker who can source access to that finance.  Learn from my mistake here, don't mix family and property investment (for financial reasons only, of course!).

Having finally found a mortgage broker who can secure a mortgage on the rental property (for a hefty fee), I am intending to release £50,000 equity from it and invest it in properties in Derby because that's where I was born and bred and therefore have great local knowledge.  Feel free to contact me if you want any information about Derby.  Once I get comfortable with property investment I intend to invest in other areas that I don't know.

My long term goal with property investment is to create a portfolio that generates sufficient monthly income that my full time job becomes a choice rather than a necessity.  I'm intending to by properties with a reasonable yield and that have the potential for capital growth.  If/when the properties realise the capital growth I will release the equity and invest in additional properties.  Once I have a sufficient portfolio I intend to reduce the mortgages on them as funds permit so that they are not so highly leveraged.

I'm looking forward to being a part of the forum community.

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Hi Chris

Welcome to the forum.

I think there's a fair few within our community who started as an accidental landlord so you aren't alone :)

It's great that you're clear on your goals - do you have a timeframe for replacing your income? As for staying close to home for your first investment, this is something we hear a lot. It's great that you're in a position to do this as there are many new investors who just can't consider investing so close to home for financial reasons. 

I suppose working in the industry makes you a bit more immune to remote investing but if staying close is serving as a confidence builder too, then it's a good move. 

How are you finding the market in Derby right now? Many deals to be had?

 

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Hi Chris, Welcome to the forum, like you I was an accidental landlord for 10 ten years but have recently added to my portfolio with two properties over in Nottingham. If not already I suggest you go along to some of the many property investment meet-ups. There are quite a few for Nottingham and I would imagine there are some you way as well. Best of luck

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21 hours ago, T J said:

"It's great that you're clear on your goals - do you have a timeframe for replacing your income? As for staying close to home for your first investment, this is something we hear a lot. It's great that you're in a position to do this as there are many new investors who just can't consider investing so close to home for financial reasons. 

I suppose working in the industry makes you a bit more immune to remote investing but if staying close is serving as a confidence builder too, then it's a good move. 

How are you finding the market in Derby right now? Many deals to be had?"

@T J, I have chosen the rather arbitrary goal of 10 years as I believe that may be achievable.  I am open to moving the goal posts as I learn more and progress on my journey though.

There are certainly affordable properties to be bought but I'm struggling to get the yields, ROI, and cash flow close to Rob D's rule of thumb values.  With two bed properties I'm looking at gross yields ~6.8%, net yields ~2.55%, ROI ~8%, and cash flow £195/month, with three beds the numbers are lower with gross yields ~5.6%, net yields ~1.6%, ROI ~5.6%, and cash flow £178/month.  There are based on 10% management fee, 5% repairs, 75% LTV mortgage at 3.5%, and me being able to buy a property for a few grand less than its asking price.  I feel like there's something I'm not doing quite right and I'm reluctant to progress with a purchase until I understand what in order to avoid a costly mistake.

 

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19 hours ago, alan1975 said:

Hi Chris, Welcome to the forum, like you I was an accidental landlord for 10 ten years but have recently added to my portfolio with two properties over in Nottingham. If not already I suggest you go along to some of the many property investment meet-ups. There are quite a few for Nottingham and I would imagine there are some you way as well. Best of luck

@alan1975, Thanks Alan.  I have already registered for the Nottingham Property Circle meet-up in Nottingham on the 14th of November, perhaps I'll see you there?

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On 11/5/2019 at 12:58 PM, christurner said:

@alan1975, Thanks Alan.  I have already registered for the Nottingham Property Circle meet-up in Nottingham on the 14th of November, perhaps I'll see you there?

Hi Chris, sorry missed your post, i do attend the Nottingham Property Circle meet-ups but I have not made it for the last few months.

Did you go ?

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Hi Chris, Alan
If I may be so bold as to suggest that we will be there on the evening of 12 Dec and turn out has always been good at our meetup.  Don't want to predict but the more the merrier so look forward to welcoming all comers to our NPC meetup at The Lion, NG7 7FQ.

Lots of activity and opportunity in Nottingham so lots to discuss.

Look forward to catching up with you soon.

Regards
Jonathan


Jonathan-Challis.jpg

The Nottingham Meetup takes place on the first Thursday of every month, find out more here

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On 2/2/2020 at 12:35 PM, dermot mccann said:

What areas of Derby are looking at do people think. I’m after something straight forward, probably a city centre flat

I don't know much about city centre flats but I'm not going to let that stop me from answering!  There are some new flats being built where Derbyshire Royal Infirmary used to be.  I'm aware of some flats towards the bottom end of Babington Lane.  There are also some fairly modern flats closer to the train station around Liversage Street.

I am intrigued as to what you see in Derby city centre that appeals to you.  For me there's only really retail which we know is dying and eateries/bars which will no doubt suffer as retail dies off.  There's no business area of Derby with several offices like there is in other cities I've been to - Manchester, Nottingham, Birmingham.  I know there's Pride Park and Wyvern but they're not in the city centre.  Please enlighten me if I'm missing something.

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