£25K TODAY or £250K in 20 YEARS? | RENTAL PROPERTY INVESTING VS FLIPPING HOUSES 

Thanks Jamie! Always pleasure to see you in here…. You have given me lots of motivation and courage. I am in midst of selling my flat in London as keen to start flipping. I already bought a flat in elegant Edinburgh and decided to move to Scotland permanently so all looking up for me as new chapter:). I want to do flips over in Scotland so wish me luck. Will shoot if I need some guidance :). Take good care and enjoy summer - well deserved no doubt! Dee 🏆

Nice work Jamie, thank you for the video

Another great video with excellent content! Well done, again! 👍🏼👍🏼👍🏼

I haven't seen this analysis before, but it resonates with me. Why put in all the work and get rewarded ones.

Excellent vid Jamie.

My first house was a Buy , Renovate , Rent. I couldn't afford a house for me to live in in Warwickshire, so bought in Derbyshire to make money, so then I could afford my house in Warwickshire. At the time, I didn't know how the finances worked with remortgaging. I was thinking it was a choice of rent out my house (while renting myself) , or sell it, and buy a house for me to live in. The mortgage advisor said I could do both, so rented the first, and bought a second for me to live in. Now, the first has been sold, and I'm waiting to start the BRR process again.

BTL here as I don't have the time to project manage a flip, plus looking for the income each month.

BTL all the way, it feels slow on first 1s but then the money flys into the bank every month The time to start is yesterday

Decent video yet again - nice one. How come you only did 1 flip compared to 5 years of BTL's income. Presumably you could have done 2 flips every year rather than stopping at 1 in your example? I think the real answer to the question is what do you need the money for? Short term wealth or long? Isn't that why some say keep every 3rd house you renovate?

BTL you forgot tax and tenants wrecking your property refurbs the court cost of removing tenants and future government regs that defiantly will favour the tenants

As per usual very great and informative video man really appreciate it! What is the minimum capital to start with flips without going bankrupt? And would you recommend doing that in partnership as a friend of mine and I were thinking to start the whole thing together.

BTL for me… I did a video comparing the 2 and BTL came out on top 👌 👍 🏠

I’m Having to do a couple of flips to move me into bigger rental properties, just a short term measure with the focus on the long game. Great video!

Thanks Jamie - great video . Do you consider BRRR the same as BTL i.e Do you refinance after every BTL refurb ??

Great Video Jamie, one of my favorites so far, BTL 100%, The numbers over the long term are very good, Time in the market is a key part to BTL🏡🏡🏡 Good luck and have a solid plan💥💥

Great video Jamie, I think it’s worth mentioning another great advantage. The rental income could also be generating interest (say 7%) and benefitting from compounding in an index fund. For this example 53550/20=2677 / 12 = £223 per month. If this was deposited each month in an index with returns of 7% by the end of the 20 years it could actually = £116,116. Vanilla BTL for me too!

What do u guys think abt companies that take over ur BTL and guarantee rent for 1 year to 3 years? Pls someone talk abt this, cos I ve two companies line up to take over my property as soon as I move to a new property

Great Video, think I will eventually rent out my flat I live in, is it easy enough to change from residential mortgage to BTL?

Wont be any money in btl in the near future. Everything is getting squeeze already very tighly.

I would say- once you have 8-10 BTLs (each averaging 110-170k) in action (working for you), you are fine with any strategy. Anything below- just pain

Surely BTL is getting more difficult. What with tax and EPC ratings plus hassle and headaches with tenants not paying. A flip seems better and no capital gains tax if your own property?

yea but how many flips could you do in 20 years with different profit on each flip more than 25k on each.

Jamie, what if you can't get a loan or mortgage because you don't work but you have enough capital to purchase outright?

Summed up my situation perfectly at the end. Im having to do a couple of flips to recycle capital, and i'm planning to hold as a BTL's as & when funds allow. Hopefully phasing out flips ASAP.

I’m not sure I’ve understood your comparison? Surly the flip is £500 k profit ? Ie one flip a year at £25 k profit for 20 years is £500 k, even with no increase in profit subject to inflation? I accept that the flip would be more work each year but your comparison is misleading Jamie ….

The reality of the situation is that small private landlords are being targeted by the government and will be obsolete in the not-too-distant future.... forget owning a rental for 20 years, it simply won't happen. My advice as a landlord of 10 years is to either flip property and enjoy the money you make NOW.... or stay away from property altogether.

I've done BTL and couldn't be faffed with the constant attention needed for some tenants. Much prefer to flip. Also BTL rent profits are eaten away by got tax rules.

Could you set up a LLC and get business loan and use that for down payments on two rental properties with the bank making up the rest? Paying the business loan off asap with profit made from rental income

0:10 Is that a £1/4m? Ill give you 300k for that...🤪🤪🤪 8:53...😁😁😁 Did you take off the finance cost when you calculated the rent roll?

Jamie, how do you refurbish when you're not local to the property? I'm down south but have been put off with fixer uppers in the north for this reason Is there a good way of contracting a firm to do it or must it be done by yourself?

BTL everyday!

I'm currently doing a flip house this is my first property and it's being financed by a loan and 0%credit cards due to the state of the property was forced down this route as couldn't get a mortgage on the property . It's so difficult juggling work and getting the money in with trying to renovate the house . This project would be so much easier if had money behind me as could commit full time . Hopefully when this is sold will look at buying another one which from that point on would be a remortgage and renting out . I would like to aim for 1 rental a year and 1flip aswell for the next year's would hopefully set myself up for the future. Great video

One thing you’ve not mentioned is that you’ll get taxed on your ROI every month

Honestly I'd steer clear of both right now unless you are very well financed and prepared for price drops and rent arrears. Hard times ahead.

Great content as always. Food for thought... how many flips could you make within 20 years? ;)

Do you bother with surveyors Jamie or just have your team assess properties?

JAMIE, i bought my first buy to let last yr !! Have done 3 flips prior to that since 2015 but im embarking on my biggest challenge yet. As you know the prices on properties are ridiculous right now with everything going over asking !! I bought a plot of land with planning for a 900 sq ft, 3 bed house. Currently im waiting for the discharge of conditions to come back from my local council but then i will be making a start on my own new build project. Essentially im planning to BUILD TO RENT !! Thought once i pay back my investors by refinancing i will hopefully have minimal money left in or even break even whilst creating 25 % equity in a £325 k house. Well so the projections go. Im not a builder by profession btw, im 40 now and the goal is to have a decent portofolio of 10 -15 BTL within 20 yrs max !! Im wont take a passive income till i retire so trying to speed up the process to achieve my main goal. Future youtube video perhaps pal !! 👍🏼 take care

Btl all day

As a HRT payer, FLIP through a LTD company is what I believe fits my circumstances.

You still accepting investors?

Btl

BTL everytime for me. It's something I can pass down when I peg it

I flipped a property 2019 made 10k , same property is now worth 35, 40 k more than I bought it for , doh !