4 buy to let mortgages - possible?

MSforums

I'm thinking about getting into BTL to invest £120k savings.

I can buy decent houses for £80-000 -100,000 that require minimal work (often with sitting tenant included).
25% deposit + 5% for stamp and other fees. = 30k required per property (4 properties in total)
75k mortgage @ 3% = 187.50 pm 
£550 rent - 10% management- 10% repairs = £440 net 
£440- £187.50 = £252.50 profit or circa £3k per year per property (3 x 4 = £12k).
If houses grow at 2% per annum over next five which I think is realistic then each property would be worth circa £110,000.

Which lender would mostly likely approve 4 BTl mortgages and what are the risks of my plan?

Thank you,

Cakeguts

You can't buy a decent buy to let for £80k to £100k. Those houses are a specialist business model as they only let to problem tenants.

davidmcn

OP is a habitual time-waster here, I wouldn't bother trying to answer.

MSforums

Cakeguts said:

You can't buy a decent buy to let for £80k to £100k. Those houses are a specialist business model as they only let to problem tenants.

Yes you can.
I think you're referring to the £30k-£50k properties in the North?
I'm thinking of the next level up.
Working tenants.

tom9980

• 4 buy to let mortgages - possible?
  House Buying, Renting & Selling
• Suggest BTL for 100k
  House Buying, Renting & Selling
• Buy to let help
  2 newHouse Buying, Renting & Selling
• Why Cambridge so expensive?
  House Buying, Renting & Selling
• Apartments for 200k
  19 newHouse Buying, Renting & Selling
• 1.8% interest accounts
  newSavings & Investments
• BTL for £50,000
  House Buying, Renting & Selling

7 Threads all on similar lines in past few weeks, timewaster.

steampowered

Of course this is perfectly possible, apart from the fact that the Op has not accounted for all costs, such as tax.

However taking out the maximum amount of possible debt is a high risk plan and could leave the Op facing bankruptcy if something were to go wrong - such as interest rate rises; being unable to remortgage at the end of a fixed term; a tenant who stops paying rent.

grumiofoundation

12 feb - OP has fictional 100k to invest 

18th feb - OP has fictional 120k to invest 

Since you are capable of making a fictional 20k a week why would you need to invest in cheap BTLs? 

diggingdude

Cakeguts said:

You can't buy a decent buy to let for £80k to £100k. Those houses are a specialist business model as they only let to problem tenants.

Actually you can.  In my part of the world (Shropshire/Wales border) you can buy a good 2 bed semi for about £110. Mine was more in the £130s but i know people in the £110s, police officers, social workers etc. £80-100 gets a decent terrace,  Trust me they are not problem tenants. Now if you are talking down South thats a different matter