Passive Income

Author
Discussion

Sideways Rich

Original Poster:

1,110 posts

177 months

Saturday 22nd February 2014
quotequote all
Not sure whether this is more suited to the Business section or here...

Anyways, keen to discuss what people view as viable options to build passive income streams over time (not looking to get rich quick) for those in reasonably well renumerated but full time jobs...

Usual suspects
Buy to Let
Commercial property
Equities
Index Trackers (Vanguard etc)

Kudos

2,672 posts

174 months

Saturday 22nd February 2014
quotequote all
That's my plans, currently building up residential BTL. I do the odd development as well and small amount of commercial.

Plan for me is about 50 units and income rather than capital appreciation. Saying that, I won't complain! I always aim to add value rather than just another property.

I have a decent "day job" that pays very well, but that could all end next month.

Hoping to be on the golf course and completely mortgage free on all properties in 5yrs!

Sideways Rich

Original Poster:

1,110 posts

177 months

Sunday 23rd February 2014
quotequote all
Interesting, I'm hoping to do something similar though am effectively just starting out, 50 units would make for an excellent source of income and mortgage free in 5 years is some achievement!

Which area of residential do you focus on?

Hoofy

76,316 posts

282 months

Sunday 23rd February 2014
quotequote all
Won't it become a full-time job managing 50 properties?

Steve7777

236 posts

149 months

Sunday 23rd February 2014
quotequote all
What does the business plan look like to get to 50 properties and what kind of properties are they? How many do you have now?

ringram

14,700 posts

248 months

Sunday 23rd February 2014
quotequote all
HYP

jonny70

1,280 posts

158 months

Sunday 23rd February 2014
quotequote all
Kudos said:
That's my plans, currently building up residential BTL. I do the odd development as well and small amount of commercial.

Plan for me is about 50 units and income rather than capital appreciation. Saying that, I won't complain! I always aim to add value rather than just another property.

I have a decent "day job" that pays very well, but that could all end next month.

Hoping to be on the golf course and completely mortgage free on all properties in 5yrs!
How do you manage a day job and a portfolio of 50 properties/ (or go about obtaining them)?


Eleven

26,271 posts

222 months

Sunday 23rd February 2014
quotequote all
Hoofy said:
Won't it become a full-time job managing 50 properties?
Yes and no. Yes some weeks, no others and sometimes not for weeks on end.

But owning and running properties is not the passport to quick riches that some imagine. We have a lot more than that and aren't using tenners as toilet paper, trust me.



santona1937

736 posts

130 months

Sunday 23rd February 2014
quotequote all
Inherit it.

Hoofy

76,316 posts

282 months

Sunday 23rd February 2014
quotequote all
Eleven said:
Hoofy said:
Won't it become a full-time job managing 50 properties?
Yes and no. Yes some weeks, no others and sometimes not for weeks on end.

But owning and running properties is not the passport to quick riches that some imagine. We have a lot more than that and aren't using tenners as toilet paper, trust me.
I figured as much.















£20 notes are marginally softer.

joscal

2,074 posts

200 months

Monday 24th February 2014
quotequote all
jonny70 said:
How do you manage a day job and a portfolio of 50 properties/ (or go about obtaining them)?
If he was chocolate he would eat himself.



cheddar

4,637 posts

174 months

Monday 24th February 2014
quotequote all
I used to manage 16 properties for a friend for 6 months a year while he was overseas, some weeks I'd be inundated with work and there was almost always something to fix/clean/re-let/or sort out. 3 or 4 fickle/problematic tenants can create a non-stop storm over nothing.

Managing 50 properties would have been full time for me and at least one other.

Kudos

2,672 posts

174 months

Monday 24th February 2014
quotequote all
Hoofy said:
Won't it become a full-time job managing 50 properties?
It would, but I employ someone F/T to do all the management and build/refurb for me at the minute. They've plenty of downtime so also do building work for others on the side to generate extra income and subsidise their salary!

I travel a lot and the last thing I want is a call at 11pm on a Sun night saying that the toilet is blocked

Kudos

2,672 posts

174 months

Monday 24th February 2014
quotequote all
There was a chap who used to frequent this forum called Groak who appeared to have a great model as a slum landlord. He was buying stuff in Glasgow for £3-4k and had IIRC 600 odd properties. Did all the letting via his own agency.

He was a bit controversial type but I liked what he had to say for himself and nearly travelled to meet to buy a few from him.

Turned out there was a bit of an expose on him in one of the sunday papers. He was a (legal) money lender but had connections apparantely to well known crime families/may well have had convictions himself.

I guess he had little problem with people paying the rent!

Hoofy

76,316 posts

282 months

Monday 24th February 2014
quotequote all
Kudos said:
Hoofy said:
Won't it become a full-time job managing 50 properties?
It would, but I employ someone F/T to do all the management and build/refurb for me at the minute. They've plenty of downtime so also do building work for others on the side to generate extra income and subsidise their salary!

I travel a lot and the last thing I want is a call at 11pm on a Sun night saying that the toilet is blocked
Ah, I did wonder - and it still makes renting 50 properties satisfyingly profitable then?

Kudos

2,672 posts

174 months

Monday 24th February 2014
quotequote all
Hoofy said:
Ah, I did wonder - and it still makes renting 50 properties satisfyingly profitable then?
It does, but will be more profitable as I get more properties in the portfolio.

Costs me c£45k yr for builder and van by the time I pay NI, fuel etc. If he's not busy doing stuff for me then he can be working for someone else and making £1k/week. If we refurb or build somewhere we can flip for decent cash, then all of a sudden it does make sense and actually costs me very little to have someone on hand that I can trust, can do the work to a good standard (sometimes too high), won't fiddle the books and the tenants can speak to him directly

Hoofy

76,316 posts

282 months

Monday 24th February 2014
quotequote all
Kudos said:
It does, but will be more profitable as I get more properties in the portfolio.

Costs me c£45k yr for builder and van by the time I pay NI, fuel etc. If he's not busy doing stuff for me then he can be working for someone else and making £1k/week. If we refurb or build somewhere we can flip for decent cash, then all of a sudden it does make sense and actually costs me very little to have someone on hand that I can trust, can do the work to a good standard (sometimes too high), won't fiddle the books and the tenants can speak to him directly
Sounds like you've nailed it.

At what point did you start to hire someone? How many properties before you decided it was too much work to be doing stuff yourself?

jeff m2

2,060 posts

151 months

Monday 24th February 2014
quotequote all
50 rentals is hardly passive.


Kudos

2,672 posts

174 months

Monday 24th February 2014
quotequote all
jeff m2 said:
50 rentals is hardly passive.
It is if you have someone else doing all the work. Do you own shares in a business? Same idea

Soir

2,269 posts

239 months

Monday 24th February 2014
quotequote all
Kudos said:
That's my plans, currently building up residential BTL. I do the odd development as well and small amount of commercial.

Plan for me is about 50 units and income rather than capital appreciation. Saying that, I won't complain! I always aim to add value rather than just another property.

I have a decent "day job" that pays very well, but that could all end next month.

Hoping to be on the golf course and completely mortgage free on all properties in 5yrs!
How do you pay the mortgages on 50 properties off in 5 years? (assuming you already have a fair few and that the rentals wouldnt cover it?