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If first flip fails to sell??

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Hi all

Im getting made redundant next year but should have approx 60k to start property developing.

My main goal is to start flipping 2 maybe 3 properties per year.

But my main worry is if I can’t sell my very first property within 6 months would I be able to get an interest only buy to let mortgage on it to release my initial capital and equity (BRR) without being employed or no self employment accounts to date?

My wife is only on 15k per year and already on a joint mortgage with myself on our residential home so can’t really see a lender mortgaging through her?

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The mortgage aspect is really a question to ask a decent mortgage broker, as they will need to look at your overall circumstances. There's no doubt that you will be limited in regards to lending, but there are some lenders that are willing to lend on a buy-to-let basis with an income lower than £25k pa. Of course, this will also depend on rental stress-tests. From an investment standpoint, particularly with flips, I would always recommend ensuring that you have two exits lined up, in case the property fails to sell in the timeframe that you need/want. If you run the figures on both selling and keeping/renting the property and both work, that can save you a few sleepless nights!

Stephen Pyke
Property Hub Invest



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  • 1 month later...

Hi Dai,

Good question and its something a lot of people worry about before their first flip.

It is very much possible to refinance as long as the numbers are right and passes the stress test. Make sure you are conservative on your figures before the deal to avoid problems. Also make sure your broker knows exactly what your plan A and B is so he can choose the right products.

Always consider the possibility of having to rent out the house in your numbers before purchase, would it still be a good deal?

If bought at the right price, and added value in the refurb then no reason why you cant refinance all or most of your money back to go again and still have the rental income each month.


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Thank you both for the replies!

I am seriously considering the BRR strategy after weighing up all the pros and cons and cash flow has got to be my main goal now as being dependant on flips for an income could be a little stressful if none come to fruition.

Problem is that I would need a solid flip as a first so it can provide me with an income for the first year while building the portfolio up to get my desired cash flow.

Just wondering if one flip with the outlook of adding 3 BRR properties a year is doable...or would I be better off getting a JOB and just solely concentrating on BRR’s??

Only looking to create a monthly income of 3k pm before tax to replace my current income? I roughly worked that out as a portfolio of 10...But I really don’t want to be getting a JOB in the meantime as I would love to be able to just concentrate and take up property as my main source of income.

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9 hours ago, dennis hughes said:

Hard question to answer. 

What area are you looking at? In our home area £60k would struggle to get you a one bedroomed flat. In the area that we work in that same £60k is a nice amount to work with.

And then it becomes about you. The first few (flips or refurbs, same difference) will depend heavily on your own skill levels. Sure, you can pay others to do the work (and that will be the goal) but you will find that unless you have a truly exceptional deal, that the money runs out pretty damn quick.

Very interested to hear your response..

Cheers Dennis for the reply.

I will be working in the Swansea, Neath, Port Talbot area initially, where 60k should be able to purchase a property but may need a bridging loan for the refurb costs, or bring on an investor or even better a JV.

I’m pretty handy tbh so looking to do a lot of the work myself but will get the trades in for the specialist jobs. But as you said my goal will be to get the trades in to do all the work eventually so I can solely concentrate on sourcing the next projects.

I’m quite interested in getting a part time job within purple bricks as a self employed estate agent, not something I was considering initially but if I’m needing some sort of income and need to source properties at the same time there’s no better way than getting the vendors coming direct to you!?


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