How Much Our Investment Property Makes Per Month

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This was our second property deal, and in this video we break down the numbers for the purchase, refurbishment, hidden fees, and the rent (minus expenses) to show the true cash flow.
00:00 - Intro
00:30 - Purchase price
00:56 - How did we finance it?
01:25 - can you get a BTL mortgage for a HMO?
01:41 - Fees and cost breakdown
02:38 - The completion statement
03:03 - Costs of refurbishment
04:50 - Total money in
05:16 - what does it rent for?
06:15 - The expenses
7:53 - Cashflow (income minus expenses)
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👇ABOUT US
We are Lia and AK, and we're excited to share our journey with you as we navigate the world of property investing, business, and working together as a couple.
AK: I left my corporate job after experiencing mental and physical health issues, and we started our RU-vid channel to document our journey as new property investors in 2019 with no upfront capital. Expect weekly videos where we provide project updates, share best practices, money-saving tips, and our learnings along the way.
Lia: With nearly a decade of experience building my own entertainment channel on RU-vid from 0 to over 330k followers, the unpredictable nature of a content creator's monthly income took a toll on my mental health. Starting my property journey was my way of future-proofing my income and creating a stable, regular source of revenue. Ultimately, my goal is to build a secure financial foundation for our future family.
Our goal is to make property investing accessible and understandable by sharing our story. We're passionate about inspiring others to take control of their lives, no matter what challenges they may face.
Join us on our journey to achieve a better work-life balance through property investing. We're committed to sharing our experiences, tips, and insights to help you on your own journey.
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Опубликовано:

6 июл 2024

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Комментарии : 134

@gentlespiritjw4904 10 месяцев назад

I love starting my Sunday morning with my favorite couple! Well done video. Thanks for sharing all the info. It's amazing just how much is involved when you get into it!! Much love from auntie Jean xo ❤

@jessmac669 10 месяцев назад

That was so informative. I think we forget what all goes into each and every property. So many small details!

@PropertyCouple 10 месяцев назад

Thank you

@lyngordon940 10 месяцев назад

Loved the joke, Lia! 😂 Also love your podcast studio-type set-up! I know you put a lot of effort into making that a comfortable space, so it’s exciting to see it getting so much use now! ❤

@gentlespiritjw4904 10 месяцев назад

I loved her joke, too! 😅

@user-xd9ec5ns2x 7 месяцев назад

Great video, thanks. Factoring all the costs and taxes makes it so much easier to understand

@Smithb83 10 месяцев назад

How have I only just found your channel?! Great info and well presented, subscribed! 😊

@PropertyCouple 10 месяцев назад

Welcome aboard!

@MARKB3946 10 месяцев назад

Great video. Much success moving forward to keep full occupancy and for renters that respect your properties. Those are awesome prices for the quality and included amenities.

@PropertyCouple 10 месяцев назад

Thanks so much!

@melindagordon5278 10 месяцев назад

I am just LOVING you two! I wish you nothing but GREAT SUCCESS in all your ventures!❤🙏

@PropertyCouple 10 месяцев назад

Thank you so much!!

@brookec.b.3611 10 месяцев назад

This is an awesome idea and quality RU-vid content imo. I love that you shared all the details of the loan and the breakdown of everything that went into this property before you could profit. I would love to know more about the downsides and the stresses to this type of work: For example, do you struggle to find tenants? I do still need to go through the backlog of videos on the channel, I'm sure you might have talked about that more already! Good content as always-Great job, both of you!

@PropertyCouple 10 месяцев назад

Appreciate you taking the time to watch and comment! We could add the downsides to property for sure. Are you interested in property investment?

@brookec.b.3611 10 месяцев назад

I've always been curious about the possibility of owning property as investments, but I'm not sure if it's realistically in my future; I know there's a lot that goes into it and I find it intimidating, but definitely interesting @@PropertyCouple

@bethwerve282 10 месяцев назад

Great info - very interesting!

@PropertyCouple 10 месяцев назад

Glad you enjoyed it

@paulguise698 10 месяцев назад

Hiya A.K and Lia, it was good that you broke down what it costs too run a house, even if its a rented out house, it certainly dosen't come cheap, good vlog as per usual, this is Choppy in Whitehaven, Cumbria, England

@PropertyCouple 10 месяцев назад

Thanks as always Choppy.

@dianegilchrist677 10 месяцев назад

Very interesting video.rents seem higher here in USA. Your breakdown is amazing.Thank you.❤

@PropertyCouple 10 месяцев назад

Thank you for watching :)

@michaelmullard4292 10 месяцев назад

Bridge loans are a great idea. I always wondered if I could handle the headache of being a landlord. If I had more time, I might consider it. But you guys give me much to think about! Great to see you both today and hope you’re both well!

@PropertyCouple 10 месяцев назад

Hey Michael, it's definitely not as 'beneficial' as most may think but it works for us. Thanks for stopping by.

@gentlespiritjw4904 10 месяцев назад

Hi Michael! It's been a long time since I've seen you in the comments section of our favorite people. 😊 I hope all is well with you.

@stephenclark6811 3 месяца назад

Great video. ✅ What about other costs - insurance, gas and electricity checks, and licensing? And do you need to take into account maintenance, repairs, damage, voids, etc. to get to a real expected net income figure?

@FreedomFighterz215 10 месяцев назад

Hi. Most informative as always. Where's the location?

@assetstacker 10 месяцев назад

Great video :)

@PropertyCouple 10 месяцев назад

Thank you 🙏

@786annah 2 месяца назад

My biggest question is how would you ‘repay’ the mortgage at the end of the term? Thank you for providing such insightful information through your videos. ❤

@grzegorzmakowski6993 6 месяцев назад

Hi. Can I ask how much property been valued after refurb? Regards Greg

@andyrooot 10 месяцев назад

Thanks for always being so open, the numbers are always useful to know, what part of the UK is the property?

@PropertyCouple 10 месяцев назад

No problem - this is in Warwickshire in the midlands 👍

@andyrooot 10 месяцев назад

@@PropertyCouple thanks again for being so open as you’re adding more value that way. I’m not sure why some other property RU-vidrs hold some of this information close to their chest.

@arlenaholmes 10 месяцев назад

Hey guys, great vid!!! I would rent from you!!! Those numbers are reasonable! That rent works with all utilities included!!! Great management!!!!!!

@PropertyCouple 10 месяцев назад

That’s good to hear :) let us know if you need a room ;)

@arlenaholmes 10 месяцев назад

@@PropertyCouple will do how does one get in contact?

@orlandohamilton2251 10 месяцев назад

I Just see your RU-vid blog popup on my RU-vid. I did watch it and subscribe. I would like to know more about invest in property. Thanks

@PropertyCouple 10 месяцев назад

Please fill out a form in the description.

@ranjanthomas5982 10 месяцев назад

Please include the approximate location of the property in future videos. I think it’s a key piece of info 🙂

@george_hb 9 месяцев назад

Great, informative video! Can I ask though - how did you find the property? - did you use anyone to find it such as a sourcing company, agent...etc?

@PropertyCouple 9 месяцев назад

We did DTV marketing on this one.

@marcwong9207 10 месяцев назад

Great video! I was wondering how much you need to pay for insurance? And what is the vacancy rate in the area?

@PropertyCouple 10 месяцев назад

Insurance isn’t a standard price but we pay around 450 a year. In terms of the void rates ours is next to nothing. I’m not sure on the area as just focused on ours.

@dgngas 8 месяцев назад

Hi when you say cleaning, how often is the cleaner going in and are they cleaning every room & ensuite etc?

@PropertyCouple 8 месяцев назад

Every two weeks. Yes every room and en-suite.

@jazztheglass6139 10 месяцев назад

Which city or part of the country is its location ? Smart getting NHS staff, more likely to be good tenants

@tixero 10 месяцев назад

Thanks for the great content guys! How much would that be after tax?

@PropertyCouple 10 месяцев назад

That's quite a complex question to answer in a comment but maybe one to cover in another video.

@truth952 9 месяцев назад

£891 net - they said £1,100 gross profit (rounded) -19% as its held in Ltd company

@TokShogun 9 месяцев назад

Nice breakdown, in your experience what % of rent do you put aside for repairs and maintenance? Thats always the biggest unknown for me but has big impact

@PropertyCouple 9 месяцев назад

Around 20%

@gif7412 10 месяцев назад

So in the end have you calculated the net yield % on the money you invested upfront? What is that? How does it compare to the stock market? Or to fixed income investments?

@PropertyCouple 10 месяцев назад

Net ROI is around 15/20% now (it was higher at the beginning when utilities were less). This obviously performs better than stocks most the time but the nice little bonus is that it grows in capital appreciation also. I don’t have an issue with stocks. Ideally one would have a mixed investment portfolio.

@truth952 9 месяцев назад

Great job guys, what area of UK is this ? Assume article 4 does but apply where’s your operating ?

@PropertyCouple 9 месяцев назад

No article 4 correct

@truth952 9 месяцев назад

@@PropertyCouple many thanks for clarifying, really appreciate it 😀

@Jules_Pew 9 месяцев назад

I think you missed off boiler service and general maintenance in your costs. Do you maintain a sinking fund for major repairs in the future?

@PropertyCouple 9 месяцев назад

Yes this was a top line overview giving it’s hard to put general maintenance costs in before they have happened. We usually allocate 20% of the monthly rent for this.

@neutrino78x 10 месяцев назад

Here in San Jose that house would cost 952,951.30 pounds sterling 😲 Probably about the same in London 🙂 We have lots of buildings like that in downtown San Jose, I used to live in one! They were originally made in the Victorian era as housing for what would later become San Jose State University, which is also in downtown (it was founded as a training facility for teachers in the San Francisco school system). I miss downtown San Jose, I hope to move back soon. Currently I'm in one of the surrounding suburbs in Silicon Valley.🙂

@PropertyCouple 10 месяцев назад

Wowza 😮

@neutrino78x 10 месяцев назад

@@Judy_R Judy, my dad paid only like 100 grand on our house initially, in 1984...five bedrooms, big front yard, big back yard, big pool, spa, etc., he got laid off in 2000 when I was in the Navy. I advised him to sell the house but he didn't want to....he got a new job in 2003 but was fired in 2008...at that point he gave the house back to the bank. But the value is currently 1.2 million USD on Zillow. 🙂 AK and Lia, that's 954,000 pounds sterling 😮 (my dad designed hard disk drives. his name is on a couple patents. Has a BSEE. He's in his 70s now.🙂)

@HayleyTief 10 месяцев назад

I’ve always wondered what the TV license was for. Do you need that if you only use streaming services?

@PropertyCouple 10 месяцев назад

You need one even if you are streaming yes.

@paulguise698 10 месяцев назад

@@PropertyCoupleI thought it was for terrestrial channels,

@UltraJamZHD 10 месяцев назад

;) use monitors instead of tvs 😉 no tv licence needed!! N they are affordable

@kelleyklein 9 месяцев назад

Hearing Ach say his name is AK gets me everytime. I always convinced I heard it wrong.

@PropertyCouple 9 месяцев назад

It’s just my initials :)

@SycAamore 10 месяцев назад

Quite refreshing to see you guys after watching all these other property "gurus". Unfortunately, I think with the current BTL mortgage rates, your profits would be completely wiped out. You mentioned that you fixed at 3.5%, but if you have to do it now you would be looking at at least 6.5%, which is double your initial rate...

@PropertyCouple 10 месяцев назад

It will make a big impact for sure. But will still cashflow positively which is the important thing. Thanks for taking the time to watch.

@SycAamore 10 месяцев назад

@@PropertyCouple Ok, a postive cashflow is good. But do you calculate the ROI on these deals? Especially now that we are in a falling market, I wouldn't invest in property if it's giving me anything less than a 5.50% return? I can easily put my money in short-term bonds and get a 6% risk-free return without all the hassle of being a landlord...Have you considered all this?

@alexanderhearth8141 10 месяцев назад

Great video / these construction prices seem low. Was this contractor a close friend or did most of this work get done yourselves, and you simply paid another LLC for the work. I.E. project management fees and PM fees to a different LLC.

@PropertyCouple 10 месяцев назад

No we just work to a budget - but we mostly PM it ourselves.

@vzwodb17 9 месяцев назад

I will say this… their construction costs in this part of the UK are way lower than they would be in the States. They’re smart to take advantage.

@V.T.travels 8 месяцев назад

4:51 calculations seem to be slightly off - total expenditure should be -£180,323.46.

@PropertyCouple 8 месяцев назад

Are you analytical by any chance?

@Stacyr4567 10 месяцев назад

Amazed by the monthly expenses. Such as internet and TV license. In WA State, per month we are paying $135 for TV/satellite. This would be cheaper by about $35 if we removed a few channels. $120 for internet. On the other hand we pay $120 for electric and $60 water, shared well.

@PropertyCouple 10 месяцев назад

Very interesting.

@chay18 10 месяцев назад

What about taxes? is there no taxes to deduct from your overall income? How does this work with a limited company?

@PropertyCouple 10 месяцев назад

Would a separate video be helpful on that? It’s not a very straightforward answer as a reply here.

@chay18 10 месяцев назад

@@PropertyCouple Hey there! Yes, that would be amazing and very insightful for someone like myself looking to venture down the same road as yourselves! Thank you, Have a great day, Chay

@johnbridges5461 10 месяцев назад

Looks really good, and rent is too low for no extra tenant cost.. Where is it?

@PropertyCouple 10 месяцев назад

The rent is about the market rate.

@rebeccashepard7507 10 месяцев назад

With the housing crisis in the UK have you thought of properties for single parents or families that is affordable for them but makes you a profit?

@PropertyCouple 10 месяцев назад

Yes but the mortgage rates at the moment make it almost impossible..... so we can blame the lovely government and their antics right now 😁

@donniebrooks21 10 месяцев назад

So informative. Internet is really cheap there. I pay $70 a month for fiber optic internet. 😢

@PropertyCouple 10 месяцев назад

I'd love to do UK vs US market comparison.

@HayleyTief 10 месяцев назад

Agreed. Without a conversion rate in my head some of these prices are so different than here in the US.

@redv0472 10 месяцев назад

What’s the tax rate though that’s an important factor

@PropertyCouple 10 месяцев назад

We may do another video on tax as there are a few elements to it.

@GoldenArrow297 10 месяцев назад

How many years will it take to recover the investment?

@PropertyCouple 10 месяцев назад

@sukrajlimbu6605 10 месяцев назад

Can you include tax and maintenance costs as well before calculating profit?

@PropertyCouple 10 месяцев назад

Would a separate video be helpful on that? It’s not a very straightforward answer as a reply here.

@ezinneerhirhieneeukaogo1439 10 месяцев назад

Yes yes separate video

@sirrodneyffing1 10 месяцев назад

OK. Add the 12% to the refurb cost, double the interest rate on the mortgage, HMO licence? Voids? Remove and replace the dish washer for instance.? deduct Corporation tax, accounts fees, confirmation statement, energy price spike in winter?.. emergency radiator leak repair at 4am? all you need is one or two extra expenses in the year and it's hard to make it stack up today.

@PropertyCouple 10 месяцев назад

There are always risk as an investor but it’s about understanding them and putting things in place to mitigate them as much as possible. We don’t need an HMO license with 4 occupants. No voids on ours as we have a strategy with the local NHS service. Energy prices in winter differ from summer yes but again the average is fine and as investors we understand that. Taxes we may do a separate video on because it’s not a straightforward topic when showing per property as opposed to a full business / portfolio. We have just done an 8 bed conversion on a 6.5% mortgage and still stacks up. Thanks AK

@bkm2797 10 месяцев назад

Seems way too low what you are asking, why not $800.00 that would still be really low, but you may be able to keep your head above water with unexpected events. You literally are supplying everything, which also includes constant replacement of what you provide in furnishings etcetera. Have you spoken with the successful long term HMO participants in areas comparable to yours? Can't help but want the best for you two, so I hope you take this in the light in which it is meant. Really enjoyed the vlog, great job as always.

@PropertyCouple 10 месяцев назад

You are probably the first person ever to say it is too low! 😂 To some degree I do agree that for what you get it could be more, but really the price is dictated by the market and that is around the going rate.

@arlenaholmes 10 месяцев назад

That rent is just right!!! It's what would keep a tenant long term even if you were to raise it over time gradually. Rent is too high and unaffordable as is....Thanks for being reasonable at the market rate.@@PropertyCouple

@sunthroughtheblinds 10 месяцев назад

£575 is $720 - can’t see how you could compare rents in different towns let alone countries?

@liszaf3976 10 месяцев назад

Maintenance costs guys run at least 10% in my experience in most HMO's and then you got your Tax!! So not all profit!

@PropertyCouple 10 месяцев назад

It's not all profit you are right. But it's also quite confusing if you start looking at the very nitty gritty. We may do another video on tax as there are a few elements to it.

@tsalt7547 10 месяцев назад

How much money did you leave in?

@PropertyCouple 10 месяцев назад

I can't remember exactly, but it does a 20/25% ROI

@MalcolmBrownson 10 месяцев назад

use No money Down Deals= Lease Option!!

@PropertyCouple 10 месяцев назад

This opportunity wasn't a LO scenario.

@stephaniedewinne4947 10 месяцев назад

I really enjoyed this informative video.

@PropertyCouple 10 месяцев назад

Thank you

@michaeljones3290 10 месяцев назад

So basically you owe the bank a hell of a lot of money. 😂😂

@PropertyCouple 10 месяцев назад

We make money from owing the bank money.

@penelopebutton9323 10 месяцев назад

Great detail! Is this community living for college students?

@PropertyCouple 10 месяцев назад

Our ones are not, but there are many that are.

@sen.5743 9 месяцев назад

This seems misleading and is only "profitable" because you locked in mortgage when it was so much cheaper, half of what it costs today. You also refurbished cheaply before the inflation and seems like you had to put down 90k for deposit plus refurb and furniture. Instead if you have 90k now, better put it on a savings account that gives you with zero effort and zero risk 6% which is 450 a month return compared to your 1299 which does not take into account ground rents and service charges or sinkingfund costs if freehold. You also assume roof will never leak or kitchen will not wear out or boiler will never need replacing and that one of the rooms will never be empty for a day..

@PropertyCouple 9 месяцев назад

It’s not misleading at all - these are our numbers on this property. “If my grandma had wheels she’d be a bicycle”…..It will still remain profitable on todays mortgage rate. Watch our latest 8 bed project video. That’s on todays interest rate (cost breakdown incoming). You also forget that this property on average will double in value ever 10 years. Not only that but I’m providing people with a home. Now multiply this by whatever number you like (a portfolio) and that’s where the real power is……property is a long term game and isn’t for everyone.

@sen.5743 9 месяцев назад

@PropertyCouple the misleading part is how some naive people might see this and massively underestimate the risks based on how this is presented and what things are not taken into the calculation now especially the depreciation of the interior. And the argument that house values double in 10 years is completely ludicrous. Some types of properties in some locations double but some stay same or even lose value over time. Even in a booming place like London I have seen many flats losing value in last 10 years while some houses doubled. Last but not least, don't forget inflation that just makes it look like house prices are growing, when you plot UK houseprices in gold you will see that for last 100 years average house has basically remained unchanged (around 5 kilograms of gold)

@sen.5743 9 месяцев назад

Just read an article about a couple who bought a buy to let in London as retirement investment. Their mortage went up from 200 to 1200 a month in a year. And their srrvcie charge from 3000 to 5000 per year due to insurance premiums and as a result are now making net loss.. and wait till the boiler suddenly breaks..

@ledout7733 10 месяцев назад

Rent is so cheap for such expensive city like London , in NY, US. For what you're offering You'll be paying 1300 Quid .for sure

@PropertyCouple 10 месяцев назад

This isn't london :) hence the cheaper rates.

@Neklank 9 месяцев назад

Pretty sure I heard Grimsby. Rents across the UK are higher than normal, purely du to lack of properties being built, mass immigration and governments little or zero appetite for affordable homes.

@crazybrave1982 10 месяцев назад

About as charismatic as celery.

@PropertyCouple 10 месяцев назад

Best comment ever 😂

@lawrencer25 2 месяца назад

Proper bullshit 😂😂😂😂

@PropertyCouple Месяц назад

Hi, I keep seeing your lovely comments across our channel. Good luck with your property investment journey, it sounds like you're doing brilliantly. Have an awesome day! Lia

@johnross2924 10 месяцев назад

People making money out of property is wrong. Houses for homes, not ripping others off in rent 😡 Roll on the property crash 👍

@PropertyCouple 10 месяцев назад

Thanks for taking the time to watch and comment on our video. We are sorry that this content isn’t for you. Thanks again for stopping by. Lia & AK

@vzwodb17 9 месяцев назад

Unfair comment. These young folks have put in a *ton* of time and money to renovate homes and provide (in this case) NHS staff a safe, clean, comfortable place to live, with all expenses conveniently included in one rent payment. Such an arrangement is much more favorable to the tenant than it would be in the USA, where I live, but the landlord has to take on a lot. These young entrepreneurs have thrown themselves into it, and I admire their energy even though I wouldn’t care to assume the responsibility myself.

@johnross2924 9 месяцев назад

@@vzwodb17 too many people making a killing out of owning 2plus property while there are lots of people unable to buy even one home. We have house shares in the UK were you rent just one room, anything upwards of £500 a month. The landlord is charging 3 people £500 each a month (£1500) rather than a couple £800 a month. That is a con!

@vzwodb17 9 месяцев назад

@@johnross2924 “Con” is the wrong word. Don’t know about other cases, but these young landlords have put in serious effort to remediate major existing structural problems like raising floors to deal with flooding, repairing woodworm damage etc - they aren’t just wallpapering over problems. I get the density argument - in the States you generally can’t convert a single family dwelling to multifamily without going before the zoning board for permission which you won’t get, bc neighbors don’t like it. But from a social justice angle, it meets a need for low cost housing, and pushing back on that sounds a bit like “we don’t want those people here”. It comes down to whether the property meets building codes, safety standards, and is kept clean - which I think these young landlords do, though can’t speak for other cases.

@johnross2924 9 месяцев назад

@@vzwodb17 I'm not specifically talking about these people. I'm talking in general, there are a lot of rented property rhat is very expensive and basic. I stand by my opinion 😀