A deal?

I've been offered a deal in Coventry. The sellers are desperate, as they want to buy a cottage form soemone who is equally keen to get to Spain as fast as possible. I think it might work. Rental would be £900 pcm. Value of property is, or could be interpreted as being, £167,000. There are some deals out there which would make it work. There would only be a couple of thousand immediate cash, but as the house is in excellent condition, this would not matter all that much. I'm trying to give them £145,000.
I do have some very good software which analyses deals. I've run this one through it. It stacks up. It doens't make huge profits to begin with, but it does work.
Fingers crossed that the surveyor will agree.

Being on the other side - landlord becomes tenant.

So today I'm a landlord who has become a tenant. I'm renting a small one bed roomed flat in a Grade II listed building within walking distance of the University of Salford. The letting agent seem to operate in slightly different way form the ones I employ. However, one good thing is that you pay one month's rent plus the rest of this month's to bring the paying date up to 1st of the next month - in this case October. Very sensible. One is usually paid on the last day of the month.

It's a very secure ;little place, and I did manage to beat them down on the rent - by £25.oo pcm (per calendar month). However - there was a,list of faults:

• the toilet was block -(Yuk, somebody else's poo keeps floating up whenever you flush - bet it was somehting to do with the people who spent eight hours cleaning the flat.


• two of the three smoke alarms are hanging don form the ceiling.


• walls quite badly marked, especially near the storage heaters


• inventory not correct.


• no instructions for washing machine, alarm system, oven etc.

And not really any body's fault, but I couldn't find my way into the main part of the building. And somehow, despite the clean, the atmosphere of the previous tenant still lingers. Never mind though, I'll still soon chase him out.

I think it;s actually going to be a nice flat. It's in the old part of the building, and is an interesting shape. It looks out on to a small garden at the front, and though it's near the main road, you hardly hear it. At the back, it looks through French windows on to a type t terrace. There are some flower baskets, and it does seem very pleasant. It's a very secure place. Two locks to get in, phone entry, alarm fitted, gated car park.

But, of course, the very best news for me is that it is five minutes walk from the office.

New Bank Account

I've had my new Alliance and Leicester bank account detials today. It's a bit like driving a new car. It's got some nice features as well. Like higher interest on the both the current and the savings account and no bank charges except on cash transactions.
I think it's actually going to make for better cash flow. I might actually begin to see a small profit on some of my rentals, though I do now have to have some redecorating done on the flat in Streatham.
The set-up process was all very straight forward, though I do need some extra bits and pieces which I guess will come in a separate mailing. That shows good security anyway. Cheeky creature that I am, I have already asked for an overdraft.
The banks will do all the changes for you, but I've opted to do these myself. I still want to keep some things going through the old Barclay's account, and I'm now going to sue it for all my other little enterprises which aren't directly to do with my Buy-to-Let portfolio.

Solicitors

I aways say you can only go as fast as the solicitors and mortgage brokers will let you. f course, there is your own time to add in as well. You may also have day job. I was asked today to provide mortgage statements for all of my buy-to-let proprieties for the last twelve months. Should be quite an easy job you would think, as I tend to file them as soon as I get them. But then the odd one gets moved, or misfiled .... and you just can't find it.
There is a tiny glitch on my credit record. Yet I have been approved for two other mortgages,a car loan and a contract with BT in the mean time. Now a provider is being a little more fussy - it is their right after all. The broker says "Lets show them all your buy-to-let mortgage statements." Fine idea. It's just that there are a couple missing. With the amount of paperwork one produces in property investment, it can be a bit like looking for that needle in that haystack.

The Way to Financial Freedom?

Thee are few people who would disagree that property investment is a way to financial freedom in retirement. But several factors can harms day to day cash flow. Your really need:

1. Contingency funds
2. Good scrutiny of each deal before you commit, to make sure that cash flow will be positive.

Think about the following:

• High bank charges - make sure you are not charged for every single action.
• Voids - they do happen.
• Charges by letting agents 10 -15% though you can get a good deal by having several properties with the same agency.
• Repair bills - rented accommodations tends to rot quicker that owned property - tenants don't feel a sense of ownership, are often sharing or are inexperienced householders, and usually finishes in rented property, although sturdy, are usually less robust than those used bu the home-maker.
• Rising interest rates.

Try to get positive cash flow -after all, that will also help you on the way to your next property

Mortgage Offer

That mortgage offer came at last. I'll be raising another £20,000 on a property in Islington. The mortgage repayments actually go down by just a few pounds. Interestingly, the surveyor set the value at £276,000, whereas I know that some similar properties have sold for over £286,000. He reported signs of aging. However, nothing too drastic on the mortgage report.

I'm now in contact with an agent in Manchester. All because I spotted that a flat I wanted to rent last week was actually up on Right Move as one for sale as well. I offered to buy it as well, but the owner / landlord is going through a bit of a crisis at the moment so can't think. A pity really, as the flat was a good price both for sale and rental and in an ideal spot. He's introduced me to a superb property on Salford Quays. The rental / price combination does stack up, though not for a BMV deal. Wish I could find the capital for the deposit. I'll have to do some BMV deals to finance some ordinary ones.

Strangely I have had two enquiries about the very house in Islington that I'm just remortgaging. I guess it's that time of year agina, Everyone is on the move.

Property News

The cutest property I own is small apartment on a pretty site, near Almeria in Spain. It is within walking distance to the beach, shops and restaurants, and is just crying out for a winter let. I'm offering this at a really reduced rate to anyone who replies after seeing this blog.
I've had one mortgage offer today. That is to refinance a three-bedroom terraced house I own in Islington, London. It will make me abut £20,000 and will also cut the mortgage repayment by a few pounds.
Another is going through at about an extra £20,000 and will save about £200 on the mortgage repayments.
However, my credit profile has been looked at a lot lately. Still, enlightened lenders don't mind. They know why I'm doing it.