You don't have to start with big, expensive houses in the South of the UK to make a good and growing income. In fact, you'll find that the cheaper the property, the better the return you'll get on your money.
I'm talking about low cost, freehold, houses, mostly occupied by families. For example, look at the return on your money with this:
Purchase price of £43,000
Gross rent of £400 per month
Deposit of 25% – £10,750
75% mortgage at 5% interest = £134.75 per month
Net cash flow of £225.25 after 10% rental management fee
Return on your deposit = 25.14%
In other words, a BIT better than you can expect if you’d put your £10,750 deposit money in the bank at today’s interest rates.
However, it can get even better. If you have the initial cash to invest to buy a property prior to renovation, it’s possible to refinance all or most of your money back out:
Initial Cash Purchase price of £56,000
Gross rent of £450 per month
Post works valuation expected at £70,000
75% mortgage releases £52,500, so you only now have £3,500 left in
Mortgage payments at 5% interest = £218.75 per month
Net cash flow of £186.25 after 10% rental management fee
Return on your £3,500 = 63.86%
(NB: refinance after 6 months, be aware that you'll have a void period during 6-8 week renovation)
How many such properties would you need to provide you with a good monthly income?
(And you will know you're providing much-needed housing that councils now don't provide)
So who do you need on your team in order to get this done and make it a passive operation? Contact me and we'll formulate your plan together