Getting started in renovating BTL propertiesMake Text Bigger
I have been a member for a few months and just read the articles, but now I’d like to ask peoples opinions on how I should start my property career please.
I have about £20k ready to invest in BTL property and I want to get started ASAP. Ideally I’d like to buy below market value and then be able to renovate and then remortgage to get my funds out to reinvest into the next project. My father-in-law is a builder so the renovation should be fairly cheap. I want to keep the properties and rent them to generate cash flow.
I live in Essex where property isn’t cheap, for example a 1 bed flat in Westcliff near to where I live will set you back around £100k+ and could rent for between 500-650 pcm, depending on location and condition. However I have been told by a mortgage advisor that as a first time landlord I would need 25% deposit minimum and that the 20% deals are only for professional landlords. This means I really need £25k+ to even consider this (plus all he legal fees and building work). So I would need to save for longer.
The alternative would be to purchase further north where I would have ample deposit. I have been looking in Sheffield as this seems to be the closest place to me that’s reasonably priced. It is roughly a 3 to 3.5 hour drive away. To the east of Sheffield city centre it looks like you can pick up a 3 bed terraced property for around £60k with a rental income of around £450 to £500 pcm. Does anyone have any experience of Sheffield to be able to tell me if my logic is correct and if my research stacks up? Is there enough rental demand?
My preference would be to buy closer to home so I can keep a close eye on things but it’s just too expensive.
Does any one have any experience of managing BTL’s from a long distance? Does Sheffield have the rental demand I need? Would I be able to easily get my money out by remortgaging for the next project or would I need to leave it in for 2 years as mortgages with no initial period are hard to get for first timers?
Apologies for all the questions but I’d really appreciate some wisdom from those that have done this before.
Thanks very much in advance
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