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  • Buy-to-Let

    ROI calculations

    Hi LDD.

    I allowed for all those costs you mention when I calculated the total cost of each house. I also allowed for mortgage repayments when calculating annual profit. I didn't allow for voids or maintenance because these are unknowns (not that I think you shouldn't, I'm just looking at my "best et before tax" scenario").

    I'm on 5 year fixed mortgages. All I can do is hope to secure good rates when the 5 years are up.

    I also considered HMO's. I've stepped back at this stage because I believe funding is difficult for inexperienced LLs like me; because I believe there is a degree of uncertainty around HMO legislation; and because I thought it made sense to get some basic investments under my belt before trying anything ambitious.

    Whether you'd regard my figures as valuable I obviously don't know but the figures given are accurate. I'd call my four houses "quite nice" investments, rather than exciting!

    Bottom line (at this stage) is that having invested £226,000, i will soon have a net before tax profit (not allowing for voids or maintenance) of just over £1,000pcm, plus refinanced £128,000 for the next project.

    I don't have the experience to know if that's good or not, but my guess is its ok.

    I don't use Open Rent. One of the big buses for me is that I've built a relationship with a chap who lives in Hull and who I now feel I can trust to source good properties, do good refrubs and a fair price, then manage the houses for me.


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    Looks good to me, I do similar calc but take 10% of rent for maintenance across my portfolio. I also calc gross and net I.e. profit I pay tax on and the money in my pocket.

    I generally look for a gross roi of between 20 & 25%

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    Slowly working towards financial freedom