Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I’m looking to get into HMOs for the professional market in Birmingham area.
I have circa 200k cash which is enough for me to buy at least 1 (fairly) high end HMO cash, which I will try to refinance in 6-12 months. The goal being to have 4 hmo’s, with about 50k of my own cash left in each deal (each yielding about 12-13k net annual profit ).
I will have no other income.
Due to new tax rules I’ll be doing this in a newly set up ltd company name.
I can add a family member/friend who is earning 25k+ if this is possible and will aid me.
Can I get 70-75% lending this way? What is the general criteria or appetite of lenders for hmos, in line with my strategy.
Am I better off trying to get commercial finance and take out a 70% drawdown facility?
….alternatively, I’m willing to hear tweaks to my strategy which would allow me to get at least 4 hmos from my 200k, asap.
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