So £3260 a month minus the rent (£1525) minus the bills (£650) = £1085 What about management costs? (£3-£4k). Repairs? (5-10%). Voids? (10%). Low cash flow is not always a problem if you own the property and expect capital appreciation. However, he’s taking all the risk with hardly any of the upside. Surely he has just become an estate agent, nothing more. An estate agent would typically charge 12% to manage a HMO. That is roughly what this guy is going to be left with. But an estate agent takes none of the risk!!
@@propertynetworking7434 - you’re better off just becoming an estate agent. Similar cash flow (12% of rent) and none of the risk!! You will need 8 of these to generate a salary of £50k - that’s 40 tenancies for a fairly average salary! Assuming fairly minimal repairs and voids!
what about management fees, (10% plus vat...)tenant finder fees, repairs and maintenance, inventory, check outs/in? students change their tenancy each year....
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So £3260 a month minus the rent (£1525) minus the bills (£650) = £1085
What about management costs? (£3-£4k). Repairs? (5-10%). Voids? (10%).
Low cash flow is not always a problem if you own the property and expect capital appreciation. However, he’s taking all the risk with hardly any of the upside.
Surely he has just become an estate agent, nothing more. An estate agent would typically charge 12% to manage a HMO. That is roughly what this guy is going to be left with. But an estate agent takes none of the risk!!
You manage this type of property yourself and don't use a letting agent
@@propertynetworking7434 - you’re better off just becoming an estate agent. Similar cash flow (12% of rent) and none of the risk!!
You will need 8 of these to generate a salary of £50k - that’s 40 tenancies for a fairly average salary! Assuming fairly minimal repairs and voids!
Amazing 🎉
what about management fees, (10% plus vat...)tenant finder fees, repairs and maintenance, inventory, check outs/in? students change their tenancy each year....
With Rent to Rent you manage the property yourself, you don't use a letting agent
and you don't get capital appreciation after 8 years...
Correct but he has not had top put much money in or get a mortgage