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Strategy plan, would this work?

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Hi everyone, just looking for some advice on a strategy I'm looking to go ahead with this year. Also would like to know people's opinions on wether to go down the personal route or buy through a ltd company in my situation. 


So me and my dad have £50k saved to invest, we are both lower rate tax payers, my dad owns his own property that he lives in, I don't own my own property. We are both self employed.


Our plan is to buy a run down property, flip it and make a profit. We plan on doing this 2 or 3 times depending on how much profit we make.

We will then purchase a bmv property to renovate then let out and remortgage, pulling out some of or most of our deposit.

I think I am right in saying after 6 months of owning a btl you are considered an experienced landlord and are eligible for a HMO mortgage with certain lenders. 

If this is the case the plan would then be to buy a run down 4 bedroom house, convert in to a high end 5 or 6 bedroom HMO, let it out, remortgage to a commercial lender, and go again, building up a portfolio of HMO property's. 

This is a very rough strategy, but just wondered your thoughts on how this would work, and also if it would be best to start up a ltd from the beginning, or leave everything in our personal names. Bearing in mind our plan is to use the profits made from the HMO's as income.

look forward to hearing from you

Scott Laws


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  • 5 weeks later...

Hi Scott,


I'm very new to property myself but I have a similar strategy in mind with the HMO side of things.


Have you done any flips before? I know this is a great way to raise a bit of extra cash but I also have heard you can lose a bit of control when flipping properties depending on what people are looking for in the area.


I am also wondering about the ltd company route so I'm interested in what others have to say.


All the best

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Hi Mike, no I've never done a flip before but should be starting my first in the next few months. Yeah I've also heard it is a tough strategy, that's the only way I see me being able to move on to HMO's though! I am going to start up 2 ltd company's, 1 for flipping and 1 for buy to let and HMO's. That's the plan for now but I still need to speak to my mortgage broker/accountant. So how do you plan on getting started? 


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Sounds like a solid plan to me. HMO's definitely sound like more work but I think it is the best way to make the numbers work for me as I'm currently living abroad. 


This means I'm looking for sourcing agents to find and manage deals for us. Turns out these are quite difficult to find!


I think using the ltd companies would probably work out best with the new tax changes, but obviously depends on how much you currently earn and how long you are intending to keep the properties for.


Let me know when you speak to an accountant/ broker and when you get started  

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  • 2 years later...

Having just done a big old renovate to sell I'd like to say that it's more expensive and much harder work than I ever realised.  I have made good money from it but it cost a year and a half of both our lives and has been bloody exhausting!  Also anything near me that looks doey-uppy gets a crazy amount of interest / offers.  

WRT your HMO idea - just a quickie you may / may not have thought of but you can't just buy a 4 bed and make an HMO.  You need permission and then licensing.  In my area this is controlled by the council who are currently quite anti more HMO's.  

Then again, if it was all easy every muppet would be doing it!  Good luck to you.  :)

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