I cover how to get started with your first buy to let property as a beginner, how you make money as a buy to let investor, how to buy a BTL property, the costs you need to be aware of and how you can go from owning one buy to let property to build a property portfolio. Buy to let property investing remains one of the main investment strategies in the UK. 🏘️ Property Accelerator 🏘️ Learn how to build a profitable property investment portfolio from scratch! Build a passive income, that has the potential to replace your earned salary, starting with £40,000. (£100 off Coupon: 100off) 👉 https://www.propertyinvestingwealth.com/accelerator Add Me on Instagram https://www.instagram.com/stephen_duncombe/ FREE Shares £100 Trading212: Do you want to get a free stock share worth up to £100? Create a Trading 212 Invest account and use promo code: 11PWCVs3ON We will both get a free share! Create an account using this link: www.trading212.com/invite/11PWCVs3ON Money Dashboard Refer Friend Link https://app.moneydashboard.com/login?redirectUrl=%2Fhome%3FreferModal%3Dtrue%26ko_click_id%3Dko_c9n3d1seuwbfa97es Add Me on TikTok https://www.tiktok.com/@stephenduncombe Free Crypto https://www.coinbase.com/join/duncom_bk I also explain how you can build a property portfolio without using any of your own money once you’ve bought your first BTL. There are 3 ways to calculate profit outcomes: Net Operating Income = Operating Income – Operating Expenses Make sure you income is more than expenses. ROI/Yield = Net operating income / purchase price * 100 This return should be better than having money in the saved in the bank and as high as you can get it. Typical range would be between 5% and 10%. Above 10% would be very good. Cash on cash return = annual cash back / cash down * 100 This gives you a ROI figure that is based on your cash down not the purchase price and shows the true return on your investment. 2 popular strategies to make money with BTL property are: - BRRR - Buy Refurbish, Refinance, Rent - Buy & Hold - Buy and simply rent out, no work required. Use rent to pay down mortgage – capital and repayment. Buying a property as an investment requires a specialist mortgage which is called a buy to let mortgage. You’ll need a deposit – 25% of sales price. 75% LTV. The larger the deposit the better interest rate you’ll get. Residential mortgage borrowing is based on your salary and your outgoings, a buy-to-let mortgage is assessed on the rental income that the property is likely to generate. IMPORTANT: Lenders will typically need the rental income to be at least 125% of the monthly mortgage payments (on an interest only basis), or even up to 145%, depending on a lender’s criteria. To be eligible for a BTL mortgage you’ll need to make sure the rental income will cover the mortgage repayments by 145%. This is a stress test that the lenders apply to a loan. Some may go lower to 125% or 130% so make sure you find a broker who has access to the whole of the market lenders so they can find the best one for you. Structure: Will you be buying it individually or as a company? Companies are currently taxed at 19% and you can claim expenses like mortgage interest as its considered a business expense. You cannot do this as a private individual. Individual ownership may push you into a higher tax band, potentially less tax efficient buying properties in your personal name. Check with your accountant. I cover in the video various costs you can expect as a buy to let landlord broken into purchase costs and ownership costs that are typical of what you need to be aware of and budget for. LEASHOLD PROPERTIES IMPORTANT: Check there no restrictions on renting out the property – you may need prior consent from freeholder on leasehold properties or the lease has restrictions called covenants that do not allow you to rent as short term rentals such as Airbnb or rent the property at all. The Sales agent should know but your solicitor should double check all this so its important you tell them you want to rent it out. At the end of the video I discuss how to build a profitable property portfolio and how to do this without using any of your own money after you have bought your first buy to let investment property. #propertyinvesting #buytoletbasics #buytolet