After quite a lot of searching, I found this, a 2 bed end of terrace, and is approximately 15yrs old. I think that it is in a good area, with good rental demand, which matches the sort of property I’m looking for.

Advertised for £100K, I offered £90K. They declined it at first, but when I didn’t budge, they came back within 2 days and accepted. It may seem harsh not negotiating, but I don’t offer below with the aim to negotiate, I make an offer of what I want to pay, and if it is more than this I’m willing to walk.

The purchase on property 3 took longer than I thought it would. The sale finally was completed in Jan 2017.

I chose to use the sellers estate agent as my letting agent. So the property had a tennant ready to move in straight away.

The works on the house were only small, and we managed to get it done within a week – painting 3 rooms, laminate replaced in one room, and a new cooker.

The mortgage rates have reduced since my estimation, and the rental is more than I anticipated. So that will give better returns than expected. See below for new calcs.

 

Price	£90K
Mortgage	£67.5K@ 3.4% = £191 per month
Deposit	£22.5K
Rent	£575 per month
Management	9%+VAT = £62.10
Insurance	£13 per month
Cashflow	575 – 62 (management) – 191 (mortgage) – £13 (insurance) = + £309 per month
Return on Cash	3708/22500 = 16.5%

So here is the updated summary

	Type	Deposit	Rent	ROI	Cashflow
Property 1	2 bed semi	£26.25	£595	13.6%	+ £298
Property 2	3 bed detatched	£31.25	£650	8.54%	+ £305
Property 3	2 bed semi	£22.5	£525	16.5%	+ £309
Total					+ £912 pcm