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  • Buy-to-Let

    Purchase 1 BTL for 90K cash or 3 BTL mortgage

    Dear Members

    I currently own 2 BTL, but I plan carry on and expand. I have 90k available and I’m looking for some of yours advice and suggestions. Would you rather buy 3 BTL on mortgage or 1 BTL for cash refurb and refinance after 6 months?
    Which business model would put it on faster track?

    Thanks for your advice.

    Paul
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    if you buy and refurb, you will have 2 at end of year and guessing most of 90k in bank. Doing 3 you will have 3 and no money in bank. So 3 faster but buy and refurb id say better personally that's what im doing currently

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    I think this is ONLY true if you somehow actually add value and a mere cosmetic refurb (including replacement kitchen and bathroom, and new flooring and decorating) - which is likely all you'll get for 10k - will not ADD value. This means if you buy at say 100k and spend 10k the banks are very likely to only value at 110k-ish.  So you'll leave most of your equity in either way.  This is not what training courses tell you but that's our experience on our last 3 refurbs, and the same for everyone else we speak to who have actually done it and are not trying to sell you a course/service.

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    Ive managed it on last 2 leaving about 4K in over the 2 but its way harder than ever has been. They are still values at about 15% under market value and what others have sold for that haven't had full refurb. Must admit they were both wreck and they may think we had to spend more than we actually did (I do do a lot of work myself after work and on weekends)

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    law sums it up pretty accurately

    i started with £70 k and bought refurbed and refinanced 5 at a rate of 1 per yer spending about £10 on refurbishment costs, i got most of my £70k out which i now use to finance flips, ive always liked the idea of being able to get at my capital if i needed to rather than have it tied up across a number of properties, the only down side to this is capital growth works better the more properties you have

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    Hi Kilopeta,

    Great news on you wanting to expand your portfolio! I think both options are good ones it’s all dependent on what you would like to do and what you can manage. 3 properties may take a little longer and be more time consuming if all need refurbing. But it could still be done within the same time as 1 property depending on what needs doing etc.

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    Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.

    Hi Kilopeta,

    Just so you are aware, you can remortgage sooner than 6 months if required, specialist lenders can offer mortgages on a 'day 1' basis and some at the new market value. 

    If you would like to check if you would be eligible for these lenders and how the rates would compare please don't hesitate to call or message.

    This may help to make your decision a little easier, if you don't need to wait 6 months in between, depending on the refurbishments each project required.


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    Jenny Reeves

    Property Tribes Financial services

    You can contact me via Direct Message, or 07581 794922 or call the team on 01206 654444 for personalised quote and advice

    How much do you know about rules and regs in BTL

    we all learn every day something new in the PRS

    But you will only really learn when you own a property

    the day you become a Landlord is the day your Landlord Education really starts

    If I was you I would buy one property with cash and then learn

    Learn what its like to get a call from a Tenant saying they cant pay there rent or they have lost there job ect

    once you have a grasp of being a Landlord and your a happy landlord then maybe remortgage out the property and start a new with leveraged property

    Its all about learning and experience in the game of Monopoly

    Your dealing with real folk your providing them with a Home its not a light issue

    and they have to come first in your plans with out them you are nothing

    Be customer focused and you wont go far wrong






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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.