£130k capital to invest

Discussion in 'Buy-to-Let Property Investment' started by Meister-char, Oct 27, 2019.

  1. Meister-char

    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?
     
  2. 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?
     
  3. Conrad Paton

    Conrad Paton Member

  4. Meister-char

    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?!
     
  5. FWL

    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.
     
  6. realdeals

    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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