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Lee has been focussing on a rent to rent strategy in Peterborough for 2 years, and was able to replace his full time income within only 6 months.
He now runs a house share specific letting agency in his local area that manages his own investment properties as well as those that he has bought with his joint venture partners.
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Lee began his property journey by focussing solely on rent to rent as it allowed him to build up his monthly income and replace his income with very little capital needed to invest.
He’s now taking the expertise he’s developed from managing all of these properties and putting that to use by helping JV partners purchase HMOs, a fantastic progression from one strategy into the next.
There’s one particular rent to rent deal that stands out in Lee’s mind as his favourite. It was a house that was for sale in Peterborough that the owner needed to get rid of in order to relocate to America for work. Ideally they wanted to sell it, but they admitted that if it didn’t sell they’d need to consider renting it out.
Lee proposed the option of a long term rent to rent deal where he would take responsibility for paying them rent every month, taking care of all maintenance issues etc. They agreed on a rental figure of £1,250 over 2 years which was slightly above market value, but it meant the owner was happy to go ahead.
The property is now rented out at £3,000 per month with monthly bills costing Lee around £500, leaving a monthly net profit of over £1,200 per month.
As with most issues in property, this one began when Lee went outside his area of expertise. The property was in a location he wasn’t hugely familiar with and it was only a 5 bedroom rather than the 6 bedroom properties he usually goes after.
Ultimately it still gives a positive monthly cash flow, but not as high as the typical properties he takes on as rent to rents.
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