Awesome. You both have become so comfortable and knowledgeable in your assessments. Isn't it amazing how past experiences and time makes a lot of this seem like old hat. Enjoyed watching.
What a great video. I'm not even from the UK (North Carolina here) or a property investor but I can really follow along. So I know if I can understand it there will be savvy people out there watching who will understand and appreciate your insight. Great job. Donna
Such a great team! Thanks for sharing your strategic planning process! I enjoy design and your earlier videos featuring before and after property reveals are some of my favorites!
really interesting, great to see the behind the scenes of the process for decision making. Really enjoyed this, you both have come a long way and it's a joy to see.
You two are so brilliant and your endeavors are admirable. We are in the USA Florida. It’s rare today to find a property of this size at this low price. And rents for a one bedroom apartment are $1,500-$2,500 a month. We were quoted $80,000 for renovation of our kitchen & main bath. Also, I the interest rates in the US have sky rocked into the 7%+++. Keep up the great work! Always enjoy the videos~Cara 🥰
JohnandCaraRetiredTravellers, Yes, my sister and her SO live in Winter Park, Florida and just completed a redo of their kitchen for $125,000.00, and that was a good deal,lol, looks great though. Good luck with yours, I'm sure it will be lovely.
@@bkm2797 Hi! I think Lia & A&K estimate for the remodel is amazing! Well we still have the same kitchen & bath too much for our budget we’d rather travel. 😊
Thanks for watching Cara! Those prices sound steep! I guess the thing to consider also is on your own property you may be more inclined to pick nicer materials, increasing the cost? However these properties are also not that large - total size maybe 94 square meters?
I liked the property, loved the window boxes, the kitchen was a good size and the bedrooms at least a couple of them would be very nice. So I guess after doing the numbers (always forgetting it's in pounds), it's not doable, that's too bad, but on to the next. Thanks for taking us along and for the mini class, see you next week!
Wow, I can’t imagine renovating this house for 40,000 pounds. That seems cheap. Are you putting new cabinets in the kitchen and replacing the tile and fixtures in the bathrooms? I would be interested to see a list of what you included in that price. Can’t imagine doing anything for that price in the US. You guys are doing a great job!
Good video guys. Btl really doesn't seem to work currently. Take off tax, add in a void period, and dome ongoing refurb costs and theres no money in it, although capital appreciation, i suppose.
You didn't mention where the deposit is coming from and how much you pay each month on that ? Also the bridging loan and the amount you pay on that ? Can you show please
Thanks for the video. I noticed in your calculation you used the same mortgage for your potential HMO. Surely you should of also factored in the higher cost of a HMO specific mortgage?
We didn't include that for this top line example but yes it would you're absolutely right. We could assume based on our current houses not far from this one and similar layout that these bills would be around 450/500 per month.
Lia and AK, great video, Lia is lovely as always, but I have an unrelated question! I was just watching Lawrence Brown's (Lost in the Pond) latest video, and he was saying that what is referred to in the USA as "hard cider" is simply "cider" in Great Britain. But, there is a drink made here, basically it's apple juice with spices (such as ginger or nutmeg) added to it, and then heated to a comfortable temperature, as a warm autumn/winter drink. We call that "apple cider". Or at least in the San Francisco Bay Area, that's what apple cider is. "Wassail" sounds very similar, except Wikipedia says that is made with mead, which is alcoholic. I wouldn't want it based on mead, because I can't stand the taste of alcohol 🙂 So, if I were in Britain in autumn or winter, and I wanted something like what I describe above as "apple cider" that is warm and not containing any kind of alcohol....what would you guys call that? And, can you suggest anywhere a tourist is likely to go, such as London, that might offer it? 🙂
Hot chocolate?! 😂 we don’t really have anything like that I don’t think. We often have Christmas German markets but it’s either a mulled wine that has alcohol in or hot chocolates served there.
Yes we would. However flipping at the moment is a little more risky due to the higher mortgage rates. At the moment less people are buying and ‘sitting tight’ which of course adds a little more risk to this strategy. If the numbers worked as a BTL on an exit strategy then it could be worth looking at.
what about factoring in your tax on the £720, or any assumed maintenance costs you might incur. For me, there's no way in the world that could work given that you're already 15k in the hole even if it was worth 160k when you're done.
This one doesn’t work for us. We don’t even need to go into tax to work that out. We may do a video on tax at some point because it’s fairly a complicated topic.
@lloydmeadows3471 yeh I'm selling mine as a direct result of the tax changes and other costs. Despite the rent, I'm actually losing money for the sake of owning my btl
Hiya A.K and Lia, do you have to pay the mortgage straight off? its good that you narrow things down, I think this house has got potential, at least the front part of the roof has no work needed to do with it, this is Choppy in Whitehaven, Cumbria, England
Correct, thanks for picking up on that. These will differ depending on the season but we estimate around 20% of the rent on average. Therefore making the overall cashflow around £1k a month. This video was a high level example of rent - mortgage and wasn’t intended to be super detailed.
Thanks for replying. Your channel just came to my feed randomly. You remind me of my wife and I. We as a property couple have been doing this for 15 years. I can tell you it took us 10 years to become financially free from property. When we were young and free like yourselves - we also thought 3-4k pcm was more than enough to survive on. If and once the kids comes along, your target figure will increase drastically. Any way, best of luck in your decade plus journey ahead!
I do have a question for you two. I'm not sure how it works in the UK, but what if one of you became a realtor and was able to put your houses on the market yourselves? You could only work on your properties. Is that too much trouble than what it's worth ? Also with all your experience you've gained, can you do your own staging ? Just some thoughts on saving money..... I enjoy your videos so much, keep them coming !
You lost my slightly at £80k to convert to a HMO, that price seems massively inflated. Based on that plan I would probably do a 4 bed by converting the upstairs bathroom & making use of the cupboard space to make an extra bedroom. 2 ensuites in the larger rooms at the front, middle room can be your communal living room & redo the kitchen & downstairs bathroom & bring the property up to HMO spec. My budget would be about £40k. Nice video though, interesting to see how everyone works their numbers.
Hi Mark, some assumptions here. We always add a small 10% buffer and do not carry out the works ourselves. We also add furnishing and staging (including photography) the property into the rebuild costs. This will include all white goods, beds, wardrobes, desks, chairs, draws, sofas, kitchen utensils, bins etc and so on. In our experience this usually comes to around £10k on a 4 bed 4 bath. Leaving you around £60k to ensure a full strip out back to brick with 4 bathrooms, new kitchen, new plumbing wiring flooring etc etc. This in our opinion is about right for this project based on our experience. We haven’t even mentioned the garden costs yet…. 😬
@PropertyCouple I appreciate the detailed response, but it still seems pretty high. For this property I wouldn't do all ensuite, 2 ensuites, 1 shared bathroom, 1 living room, 1 kitchen. Obviously all furniture & white goods, I would expect change from £40k.
Am I missing something here? If you spend 145k pp. spend 40k refurb. Then it's only worth 160k. Doesn't that mean you've spent 25k more than its value? As well as the hassle of the refurb? Sorry. I don't understand the logic.
Those numbers are not really accurate. Why not include repairs and maintenance contingency, agent re-let fees, building insurance at least to make it realistic
In the video I mention this is a very high level analysis. Bills will vary through the year due to season. (Winter around £500 and summer £200 averages) agent fees I believe I added in and things like insurance etc again are small points that we teach more 1 to 1 with students.
I don't know very much about property dealings, but you both make it very easy to follow and very interesting.
Thank you! 🙏
Awesome. You both have become so comfortable and knowledgeable in your assessments. Isn't it amazing how past experiences and time makes a lot of this seem like old hat. Enjoyed watching.
Thank you Mark! 😁
What a great video. I'm not even from the UK (North Carolina here) or a property investor but I can really follow along. So I know if I can understand it there will be savvy people out there watching who will understand and appreciate your insight. Great job. Donna
Aww thanks Donna!
This is great. Very Informative, educational, and entertaining. Keep it coming guys!!!!
Thank you so much! Will do!
Such a great team! Thanks for sharing your strategic planning process! I enjoy design and your earlier videos featuring before and after property reveals are some of my favorites!
Thanks McGee! Really happy you're enjoying our channel
really interesting, great to see the behind the scenes of the process for decision making. Really enjoyed this, you both have come a long way and it's a joy to see.
Thanks so much Mrs Pickle
Well done guys! I find it so easy to watch and learn from your videos! Just clear and transparent information! Would love to get in touch.
Yep I did find this valuable, thank you guys. Keep it up 👍🏽
Thank you! Will do!
these types of videos are really really helpful, especially with the added voice overs!
Thanks Sofia! Glad you are enjoying them
Great as always, thank you for sharing your knowledge 😊👍
Thanks, lovely video and very helpful 😊
You two are so brilliant and your endeavors are admirable. We are in the USA Florida. It’s rare today to find a property of this size at this low price. And rents for a one bedroom apartment are $1,500-$2,500 a month. We were quoted $80,000 for renovation of our kitchen & main bath. Also, I the interest rates in the US have sky rocked into the 7%+++.
Keep up the great work! Always enjoy the videos~Cara 🥰
JohnandCaraRetiredTravellers,
Yes, my sister and her SO live in Winter Park, Florida and just completed a redo of their kitchen for $125,000.00, and that was a good deal,lol, looks great though. Good luck with yours, I'm sure it will be lovely.
@@bkm2797 Hi! I think Lia & A&K estimate for the remodel is amazing! Well we still have the same kitchen & bath too much for our budget we’d rather travel. 😊
JohnandCaraRetiredTravellers,
Thinking that is a wise choice, happy travels!
Thanks for watching Cara! Those prices sound steep! I guess the thing to consider also is on your own property you may be more inclined to pick nicer materials, increasing the cost? However these properties are also not that large - total size maybe 94 square meters?
I liked the property, loved the window boxes, the kitchen was a good size and the bedrooms at least a couple of them would be very nice. So I guess after doing the numbers (always forgetting it's in pounds), it's not doable, that's too bad, but on to the next.
Thanks for taking us along and for the mini class, see you next week!
Thanks for watching!
Good content. I like how you break down the numbers and explain your thoughts. Keep up the good work. I subscribed.
Thanks for the sub!
Great video -Guys what was the spread sheet used for working out the pros and cons etc also what app did you use for floor plans please..
Wow, I can’t imagine renovating this house for 40,000 pounds. That seems cheap. Are you putting new cabinets in the kitchen and replacing the tile and fixtures in the bathrooms? I would be interested to see a list of what you included in that price. Can’t imagine doing anything for that price in the US. You guys are doing a great job!
Same interested! ❤
Good video guys. Btl really doesn't seem to work currently. Take off tax, add in a void period, and dome ongoing refurb costs and theres no money in it, although capital appreciation, i suppose.
There is still money in it. It will still CF at around 700/800 pm with the bits you added in.
Well done ❤
Hi, is that spreadsheet shown at 12:45 something you made or is it some sort of app/programme you use to analyse the numbers? Thanks
Great content. Good choice on camera Lady. 🙂
Thank you! 😁 She was fabulous our Christianne 👍
You didn't mention where the deposit is coming from and how much you pay each month on that ? Also the bridging loan and the amount you pay on that ?
Can you show please
As we said in the video, this was a fairly high level breakdown. We could cover this in another video if it is something of interest?
Thanks for the video. I noticed in your calculation you used the same mortgage for your potential HMO. Surely you should of also factored in the higher cost of a HMO specific mortgage?
Good video guys
Wow! Such a wealth of information! I'm curious if you get real estate hater DMing you for giving away all those good tips and secrets. Good job!
No we don’t. However we do get angry people who hate landlords 😂
Did I miss about inclusive costs in the rent or C tax, Elec, Gas, Internet. Would that reduce the £1395 profit? Thanks.
We didn't include that for this top line example but yes it would you're absolutely right. We could assume based on our current houses not far from this one and similar layout that these bills would be around 450/500 per month.
@@PropertyCoupleThank you!
What “ design thing” do youse use?
If you get that property don't throw the shears in the living room window away, they are pretty and just need to be washed
What are shears?
The “wallpaper”/vinyl in that bathroom reminds me of linoleum flooring which was popular in the US in the 70s. 😂
It's a 70's vibe for sure 😂
HMO is basically making making a single family home into a multi unit property of one bedrooms, yes? With a shared kitchen?
It’s a house of multiple occupancy and are shared by more than one household.
Lia and AK, great video, Lia is lovely as always, but I have an unrelated question!
I was just watching Lawrence Brown's (Lost in the Pond) latest video, and he was saying that what is referred to in the USA as "hard cider" is simply "cider" in Great Britain.
But, there is a drink made here, basically it's apple juice with spices (such as ginger or nutmeg) added to it, and then heated to a comfortable temperature, as a warm autumn/winter drink. We call that "apple cider". Or at least in the San Francisco Bay Area, that's what apple cider is.
"Wassail" sounds very similar, except Wikipedia says that is made with mead, which is alcoholic. I wouldn't want it based on mead, because I can't stand the taste of alcohol 🙂
So, if I were in Britain in autumn or winter, and I wanted something like what I describe above as "apple cider" that is warm and not containing any kind of alcohol....what would you guys call that? And, can you suggest anywhere a tourist is likely to go, such as London, that might offer it? 🙂
😂
Hot chocolate?! 😂 we don’t really have anything like that I don’t think. We often have Christmas German markets but it’s either a mulled wine that has alcohol in or hot chocolates served there.
@@PropertyCouple lol, well, I do love hot chocolate as well! 🙂
Would you consider flipping a house like this and using the profit toward one more suitable for a larger HMO?
Yes we would. However flipping at the moment is a little more risky due to the higher mortgage rates. At the moment less people are buying and ‘sitting tight’ which of course adds a little more risk to this strategy. If the numbers worked as a BTL on an exit strategy then it could be worth looking at.
what about factoring in your tax on the £720, or any assumed maintenance costs you might incur. For me, there's no way in the world that could work given that you're already 15k in the hole even if it was worth 160k when you're done.
This one doesn’t work for us. We don’t even need to go into tax to work that out. We may do a video on tax at some point because it’s fairly a complicated topic.
The tax changes will kill buy to let.
@lloydmeadows3471 yeh I'm selling mine as a direct result of the tax changes and other costs. Despite the rent, I'm actually losing money for the sake of owning my btl
What is the market for single family rental property vs HMO? Some of these properties might work better for a family than 4 unrelated individuals.
Hi Jono, demand is high all round for both family lets and house sharers / students rentals 👍
Hiya A.K and Lia, do you have to pay the mortgage straight off? its good that you narrow things down, I think this house has got potential, at least the front part of the roof has no work needed to do with it, this is Choppy in Whitehaven, Cumbria, England
Hi Choppy, we usually get 25 year mortgages!
@@PropertyCoupleI thought you had to pay it straight off, what a silly I am
Have you bought anything with your Argos Voucher I gave you?@@PropertyCouple
Do you have video on flipping
Hi
Your cash flow for the hmo example you forgot to deduct another main cost - utility bills!?
Correct, thanks for picking up on that. These will differ depending on the season but we estimate around 20% of the rent on average. Therefore making the overall cashflow around £1k a month. This video was a high level example of rent - mortgage and wasn’t intended to be super detailed.
Thanks for replying. Your channel just came to my feed randomly. You remind me of my wife and I. We as a property couple have been doing this for 15 years. I can tell you it took us 10 years to become financially free from property. When we were young and free like yourselves - we also thought 3-4k pcm was more than enough to survive on. If and once the kids comes along, your target figure will increase drastically. Any way, best of luck in your decade plus journey ahead!
I do have a question for you two.
I'm not sure how it works in the UK, but what if one of you became a realtor and was able to put your houses on the market yourselves? You could only work on your properties. Is that too much trouble than what it's worth ?
Also with all your experience you've gained, can you do your own staging ?
Just some thoughts on saving money.....
I enjoy your videos so much, keep them coming !
We could yes. We just choose not to 😂 thank you so much for watching, we really appreciate it 🙏
Did you factor the HMO build cost of 80k into the cashflow/yield calculator?
Yes we did.
You lost my slightly at £80k to convert to a HMO, that price seems massively inflated. Based on that plan I would probably do a 4 bed by converting the upstairs bathroom & making use of the cupboard space to make an extra bedroom. 2 ensuites in the larger rooms at the front, middle room can be your communal living room & redo the kitchen & downstairs bathroom & bring the property up to HMO spec. My budget would be about £40k. Nice video though, interesting to see how everyone works their numbers.
Hi Mark, some assumptions here. We always add a small 10% buffer and do not carry out the works ourselves. We also add furnishing and staging (including photography) the property into the rebuild costs. This will include all white goods, beds, wardrobes, desks, chairs, draws, sofas, kitchen utensils, bins etc and so on. In our experience this usually comes to around £10k on a 4 bed 4 bath. Leaving you around £60k to ensure a full strip out back to brick with 4 bathrooms, new kitchen, new plumbing wiring flooring etc etc. This in our opinion is about right for this project based on our experience. We haven’t even mentioned the garden costs yet…. 😬
@PropertyCouple I appreciate the detailed response, but it still seems pretty high. For this property I wouldn't do all ensuite, 2 ensuites, 1 shared bathroom, 1 living room, 1 kitchen. Obviously all furniture & white goods, I would expect change from £40k.
Thank you for the insightful and inspiring video. Did you consider stamp duty?
Also, could you share your deal analyser?
I am really enjoying these new videos. They’re very informative and engaging. Great job! Did you end up getting this property?
Thank you very much. No we felt it wasn’t right for our strategy.
Where abouts this property is if its ok to ask
Can you explain how to calculate ROI.
ROI = annual cash flow (profit) / money left in the deal x 100
Am I missing something here? If you spend 145k pp. spend 40k refurb. Then it's only worth 160k. Doesn't that mean you've spent 25k more than its value? As well as the hassle of the refurb? Sorry. I don't understand the logic.
Those numbers are not really accurate. Why not include repairs and maintenance contingency, agent re-let fees, building insurance at least to make it realistic
In the video I mention this is a very high level analysis. Bills will vary through the year due to season. (Winter around £500 and summer £200 averages) agent fees I believe I added in and things like insurance etc again are small points that we teach more 1 to 1 with students.
Oh wow this is recorded on a Smartphone.
6:09
Yep! the whole video apart from the studio was filmed on iPhone
Why don’t these family members just keep the house tidy it up. Rent it out. Why the urgency to sell up and take money
My guy. You need to be an alpha.
What does this even mean?
Lea, your husband is such a nice guy with a great Butt!! You are a very lucky girl to find such a nice guy!! You make a great couple.
😂 thank you
Such a mugs' game.
She cute ngl
Hells yeah