Plan B idea v7.253

[AtW]

£800/week? That's ~ £115/night. You'd get a nice hotel for that with lots of amenities. I find it pretty unlikely you'd get anything people would want to pay that for for £140k.

Do you have any examples?

You only let it out to the kind of tenants no hotel would want to put in - like axe murders on parole etc...

[milanbenes]

Kings Cross?

nah that would be by the hour

ATW how's life, did you buy your Porsche ?

Milan.

[AtW]

nah that would be by the hour

ATW how's life, did you buy your Porsche ?

Milan.

Not yet.

But I've got a German car that requires lots of maintenance and doing around 13 mpg in the city

[vetran]

well B&B for the council is about £500 a week, get a few of those and you could retire.Though you might have to pay the cleaner a lot more.

[DimPrawn]

Funny you should say that, I was looking at a place up here (arse end of no where but lots of contractors).

Two bedroom house here £25k, say £100 a week per room @ 45 weeks a year = £9,000

A cleaner is £25 a week = £1300 a year

Electric, water, council tax and broadband say £250 a month = £3000

£4700 a year on a £25k investment

Won't make you a king but nice little supliment to real income

It's good to see you have grand ambitions.

[SimonMac]

It's good to see you have grand ambitions.

Most of the folkes on here could get their hands on £25k without too much problem, £140k and you are looking at a mortgage which complicates thing. Also if your tenant trashes a £25k house, you will shrugg it off, if they trash a £140k house you are in trouble.

From little acorns mighty oaks grow!

[NorthWestPerm2Contr]

Still no answer - are there any drawbacks here, this is my calculation:

140k BTL mortgage max 600/month interest only.

Short-term rental income: 1560 based on 60% occupancy

Cleaning costs: 150/month

What's the catch?

[d000hg]

This is basically the holiday let model, right?

[SimonMac]

Still no answer - are there any drawbacks here, this is my calculation:

140k BTL mortgage max 600/month interest only.

Short-term rental income: 1560 based on 60% occupancy

Cleaning costs: 150/month

What's the catch?

What about other bills Electric, Water, Council Tax, most places expect WiFi to all be included? Agency costs to find tenants?

After all that you then got to pay tax on the income?

£1560 a month
-600 mortgage
-150 cleaning
-350 "other bills"
-125 Agency fee (8%)

£335 a month or just over 4 grand a year.

For £600 a week people would expect very high end furnishings etc which will eat that £4k up

[d000hg]

140k BTL mortgage max 600/month interest only.

Wowser, BTL mortgages are pricey.

We only just remortgaged and pay ~£550 repayments pcm on a £175k mortgage!