All Forum Posts by: Jack Mac connoran

Grant for social renovation house
Up to 40k paid to owner of the house for repairs which all work has to be approved by them. Need to be ber rated B+ or better. They take care of all maintanence within the building, bar structural but that's what's insurance for.
The 40k is paid back in installments against the rent from the council which is a 80% rent based on similar comps in area. The lease to the council must be a minimum of ten years.
Say rent at 100% rate was 1k, although we would be aiming for more.
So if over a 10 year period rent was paid at 80% of 1k- (800) it would equal 96,000 instead of 120
96,000 -40,000 = 56,000 profit
After 10 years 56k profit, and an asset worth 200k plus 10 years apprection.
Initial investment (Aqquisition (50k)? + Renovation (40k(me) 40k(council) ). 90k all in.
Monthly 800-333= 466 monthly cash flow .
•Rent is paid even if nobody lives there
•Handsfree
•Option to sell private (lease stays) or to council
It is a long term investment which is safe.
I would probably do a different design if i went this way.
If you renovated it, refinanced a loan backed by your house and rented it out you would get
200k cash loan and rent of 12k a year, 1k monthly (100%).
Over 10 years would be 120k cashflow Minus the loan repayments. Over 25 years which comes out at 666 +3.5% APR. Leaves 333- minus intrest positive cash flow. 333 monthly over 10 years is 39,960.
200k refinance payout minus aqquisition (50k) + rennovations (80k) = 70k cash + 333 monthly income.
Highlights•••••••
•With option 1 you have a higher cash flow monthly
•No maintenance costs (80% rates)
•Hassle free
•Safe, money paid occupied or not
•Have to deal with council on number of matters
•Can get funding for 40,000 of renovations paid back over 10 years
•466 net monthly, 10 year minimum lease

Option 2
•Refinance package 200k - aqquisition (50k) + renovation (80k) = 70k take home
• Can rent out at 100% market value
• Maintenance, although should be minimal as new renovation.
•Locality close
•Can raise rents
•333 net monthly 70k cash
•70k cash to invest again. 333 monthly towards safety egg on property.

I think although I'd prefer option two as I would like to invest in more properties I believe option 1 would appeal to some also. Truly passive income,  minus your aqquisition fee and Reno costs over 40,000. 

There is a house I'm looking at that has been overgrown. I cannot post pictures here but I have pictures of the property.

It is a 4 bed 1 bath bungalow. There is no appliances and everything is in need of an update. There is rot in some of the wood and needs new electric(which I can do) and probably plumbing also. Basically the whole house needs a complete makeover.

if the structural review came back good what would be some estimates on a scope of work that include

New electrics

new plumbing

single glazed windows currently

new boiler

lots of Carpentery work, rot to take care of (unsure of how expensive the rot is) all new skirting board and window frames.

new plaster and paint

possibly new insulation?

there is mold in some parts of the house.

Tiling ( my father can do)

flooring And door frames (carpenter),

hoping to get the house from 10-40k or a split of the profits after renovation. 

During renovation I would probably knock a wall between bedrooms and turn into one master bedroom with an ensuite.

hopefully after resale I would be looking to fetch 180-240k ( irish rural market). 

wondering how much you would esitmate a renovation on it to cost, baring in mind nothing is probably staying.

have you ever done a deal where seller gets a piece of the pie after deal is done instead of paying for the property beforehand, or even as a cherry on top of the cake ?🍒

Looking to buy my first property. The property in question is student accommodation in Ireland right beside the college grounds of about 10,000 students.

it is priced at €30,000 for a two bedroom two bathroom shared living kitchen area. 650 sq ft. Includes parking and bicycle rank. 

the rent is locked due to a scheme at €70 per room per week minus utilities. So €140 a week for two rooms for 39 weeks comes out at €5,650. For 52 weeks it comes out at  €7,280. As I only seen this deal on the realtor website I haven't researched it more yet but I believe that you might only be able to do a 39 week contract. 

Is this a good deal for a beginner if the property checks out and is in good condition

if I had to accept renting out for 39 weeks at a time is there anything profitable like Airbnb I could do with it while college is out. Or what are the chances of getting students who will rent for the full 52 weeks.

As a first time landlord what type of insurance and taxes would I be looking at? In Ireland.

is it more riskier to aqquire a low turnover rental than a high turnover as the utilities have the same chance as breaking or the same chance of major repairs or even more chance if it is less expensive. From a tradesman view it seems on more expensive houses there's more profit for the boss and a touch more precision and quality goes into bigger and more expensive builds where less expensive might be more of a get it done quickly attitude it'll do. So if it is more likely to have a major repair on a cheap house or apartment the difference in profit between this and a higher value property does nothing to counteract the downfall of a lower value property?

what have you found to be the biggest problem renting to students renting to students?

By working of a 39 rent week year the figures are

By the numbers 5,650 - expenses such as utilities tax and insurance and a small fund allocated for repairs on a 30,000 mortgage seems solid.

say my annual expenses add up to 1,650 which I'm hoping is a high guesstimate leaves me with 4,000  or about 5,500 on a 52 week basis.

30,000/4,000= 7.5 years + interest

52 week

30,000/5,500 =  5.45 years + interest 

39 week

By my numbers in about 8.5 years if I choose a short mortgage it should be a positive cash flow with the opportunity to sell if appreciation is good. If value goes down can still hold as a rental. Or would it be better to get a long or medium term and invest excess into cash for fix and flipping and then use profits to pay off mortgage quicker than 7.5 years or to invest all the profits into aquiring more properties.

any advice is greatly appreciated .