First BTL Burnley

[unkletom]

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%

[ayns]

Personally, if I was a first time investor and had a £100k I would be looking to invest in 2 properties that needed very light refurb that would cash flow well straight away. I’d learn the ropes of how that worked out etc and then go from there.

I know you have costed refurbs etc , however these can go over especially with old houses. I budgeted £10k for one of mine, roof works, additional building works, damp proofing that was worse than  first thought, £15k in the end. That wiped out a good chunk of profit plus it took us 2 months longer as well. 

Ive just invested £84k in properties that will be netting me £10k per annum min after all costs and need little work doing to them. It’s boring , but I know what I’m getting and it works for me, it’s not my main job and don’t plan it on being for 10 + years 

So many people focus on making money out of refurb etc, which I know does happen and maybe I’m super safe. Lots of property gurus push the BRR strategy, However every property I’ve bought over the years I’ve always made good money on , just due to market / buying in a good area , strong fundamentals.I’ve made more money on my residential house in 5 years than the lady I bought it from who refurbed it and sold it to me and I’ve done nothing . 

also don’t underestimate the time a refurb sucks out of your life, my wife or I seemed to be at ours every other day which when you have a busy job/ kids etc was a pain! 

 

 

[Dino V]

There are some bits of BB11 that will rent will and other bits that will rent, but... Be very careful if you don't know the area and the sourcer is unlikely to give you an unbiased view. 10% management will be a struggle for a start, as most are 10% plus VAT and you'll definitely want a good agent. I can recommend one in that area, if you need.

Question would be why is someone selling a £100k+ house for £75k? There's plenty of buyers available at the moment. Chances are it's going to need some work, so factor that in. If nothing else, you'll need an electric certificate which is likely to require some upgrade works, potentially a lot. 

That deal looks almost too good to be true, so do a lot of due diligence