Buy to Let (I am new to this)

RomeoLewis

Hi, My friend and I are looking to buy a property, in order to rent it out (Buy to Let) we have found a house which is £20,000, which need minimal work on it before it can be let.

We are currently students, and we are looking to enter the property business, we have found this house which we are eager to buy.

We are new to this industry and therefore do not have a lot of experience, although I have family members who are landlords.

We get £6,400 student loan each (£12,800 together)
I get £90 a week disability living allowance
He gets (average) £104 per week.

Maybe we are naive in thinking that if we got a £20,000 mortgage, and charged £500 pcm for the property we would have earned £30,000 in 5 years, therefore paid off the mortgage of £20,000 (not including fees/interest etc..)

We are looking to begin this journey within 12 months, and are planning on making as much money as possible and saving as much as possible from now til we begin.

Can anyone help, and inform me whether this will be an easy task? or a long-winded process that will stress me out? lol

Do you know of the best companies to contact?

Thanks

Romeo

ACG

I dont want to say this is impossible as it currently stands but i think it is.

You have no income.
You would need atleast a £4-5k deposit + money for fees.
You are also presumably not home owners? Which means you are most likely first time buyers...if thats the case, then there is only 1 lender i know of that will do BTL mortgages for first time buyers - the chances of them accepting your situation is probably quite slim.

GMS

You will fnd a £20,000 property not suitable security for almost all lenders aside from other issues as mentioned.

If a property was available for 20k and generating £500 mth in rent then there would be investors all over it.

If it is what you say then pass it to an investor for a finders fee

Philipth

One question - your student loans, are they not going on studying? i.e. halls of residence, food, text books etc?