Quote:
Originally Posted by American Psycho
Are you mortgaging these rental proeprties or cash in?
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Let me first clarify re the 'slum landlord' points above. I am not talking about some eastern european country, but a picturesque part of the the UK . My hometown Teignmouth, pictured above.
The properties I am talking about, while certainly not luxury mansions are still very nice little starter homes / rental properties. Couple of bedrooms lounge toilet bath kitchen etc, small outdoor area, poss a small garden and parking for a car etc... All clean tidy and presentable places that while they wouldn't be my first choice, I would and could live there myself, if I needed too... Certainly not shitholes in any way shape or form...
So what I have done is to wait for a place to become available, and then paid just over half up front in cash and then got a 25 year mortgage on the remainder, that can be overpaid if I choose too... Working closely with the rental agents they ensure (for 10%) that a trustworthy and solvent tenant stays there and they handle EVERYTHING.
I am guaranteed my monthly payment, irregardless of them receiving it from the tenant and a such I have enough to make the mortgage payment and a little extra for me...
The income is totally passive and I do absolutely nothing to receive it. Although the income for each property is not mind-blowing money, it all adds up to a nice passive income. Add to that one place I bought in 2013 for £118,000 is now valued at just under £150,000 should I wish to sell...
I mean its a boring solution to making money that contains no excitement or nude women etc, however it is extremely simple to do and requires no work provided you have the initial investment (approx half upfront) which in the case of the preposition of this thread "If you had 50 / 60 K cash" is exactly what I wold do / have done before / would do again
Also, once you have a couple of properties like this, it becomes infinitely easier to acquire more, as you can prove what you are doing is working when applying for further mortgages
And naturally, you can always sell a property for a nice profit at any time, if you decide you want that dream sportscar or world cruise any time in the future
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