one I am currently trailing which is working great.
I own a lot of large detached houses with garages.
I’ve been renting these out successfully for
the last couple of years for people who want to
store a classic car, a sought-after motorbike or
just general household junk. I’m getting £20
to £40 per month for each garage – it’s
not a huge amount but I’ve just increased
my yield by up to £480 per year!
Tip: Look at any unused space in your property
or garden and figure out what you can use it for.
We’re considering turning an old out-building
into a small flat at the moment.
Cashflow Strategy 5: Sourcing
This is for a time-rich person who can go out there
and start doing some deals.
Perhaps you haven’t got the funds to buy right
now; perhaps you’ve got a good marketing system
going and too many leads to know what to do with
them, perhaps you want to build some cash up before
you get investing yourself. Either way, sourcing
property for other buyers is big business.
can do this in a number of ways:
Sell on unqualified leads
Sell on telephone qualified leads
Qualify and Package a deal
Package a deal with “lock-in” agreements
of these will give you varying levels of fees from
£50 up to 3% of the property’s value
at the top end. It’s possible to make a very
good living just sourcing and passing through deals
to other clients.
Top Tip: Focus on one particular type of sourcing
and become very good at that. A niche market will
always outperform a broad market so keep it focused
and the customers will come.
Cashflow Strategy 6: HMO’s
For me, the holy grail of property investing and
where the real cashflow returns are always made.
Take a property and rent it out by the room to young
professionals. You can expect to double or triple
your yield instantly and the good thing is you can
even do this on small 3 bed houses.
Let’s look at an example:
bed end terrace worth £125,000 with 3 bedrooms
(2 doubles, 1 single) and 2 reception rooms.
What I would do is rent out four rooms, keep one
aside as a communal area and take rental income
of £1472 to £1645 per calendar month.
Take approximately £100 per month per tenant
on bills and on an average 85% gearing, your monthly
cashflow would be £497 to £670 per calendar
lot of people believe that its hassle to run HMO’s
and I have two comments on this.
is it worth the hassle to take a 3 bed terrace from
a 5% to a 16% yield? I think so.
it does take some time and effort to set up in the
beginning but once you have a HMO running, it’s
no more than a couple of hours per week per house.
Top Tip: Buy a 2-storey property with 4 bedrooms
and 2 reception rooms giving you 5 bedrooms to
play with for less than £200,000 and you
will make at least £500 per month minimum.
Property investors are not having the best of times
at the moment. There’s a lot of negative press,
lenders are running scared and the testing times
are set to continue.
However, if you can manage to work on your cashflow
in the next 12 months and keep your properties ticking
over, then by the time of the next property boom,
you’ll be a very wealthy player.
the words of Jerry Maguire “show me the money”
and the cashflow will keep you going.