Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 4 weeks ago 48
New member reporting in, I’ve been a landlord for 8 years now and I’ve got 4 flats and a couple houses. The last purchase I got planning to build new so doubled my money ( gogo permitted development rights 😀 ) so I’m now looking at my next purchase as I’ll have a good size lump sum.
I think I’m set on either a HMO or shared house (studio rooms). I think studio’s would be easier to rent and command better price for the same footprint. I don’t take DSS tenants at the moment but would look at it for a HMO. A letting agent takes care of the tenants, routine inspections etc. Touch wood not had a void in 8 years.
The demographic for the area is largely employed eastern euro’s, and we have LOTS of them.
Tentatively I’m looking at a £200k property that could be made into 7 studio’s (£20k refurb budget), each renting for £85 per week would produce circa £2,500pm rent, obviously less bills.
Would a lender then remortgage based on this rent rather than the purchase price ?
Appreciate any advice.
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