£130k capital to invest

M

Meister-char

New Member
Can I achieve £1000 pm cash flow after management+ bills from a £130k inheritance with NO leveraging of funds due to low income.
I am looking at areas in Wales.
2 x 2 beds with each room let separately gets me there. Any other ideas?
At all plausible?
 
P

PostBrexitInvestor

Member
It all depends on local rental rates - which can be significant with HMOs.

To bring in £12,000 a year would require a rental yield of 9.2% which is ambitious

Also, what about general running costs for the property, legal costs, etc?
 
C

Conrad Paton

Member
M

Meister-char

New Member
Location is flexible. I've seen a few of these and think they must be too good to be true. Even at £120k that property would be yielding 17.5%. What's the catch?!
 
F

FWL

Member
If you go in with your eyes open then you could create a decent rental income stream. On the flip side, if the rental side doesnt work out then I would assume your redevelopment investment SHOULD increase the value of the property by a lot more than it cost you to do the work. You could sell the property or remortgage on the higher value.
 
R

realdeals

Active Member
Well if you were spending £20k to refurb/redevelop a property but the uplift was just £15k then there would be no point in doing it?
 
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