Mortgage an existing BTL property to fund a new one... help!
Discussion
Morning all 
I have three mortgage free BTL properties and want to start increasing my portfolio.
Two are in Openshaw, Manchester, both 2 bed terrace, both bought for £70k each, approx 10 years ago, now worth around £130k each, and bringing in £650 pcm each.
I've been told I can mortgage one house for £90k or would it be better for me to spread between both properties?
I want another 2 bed terrace or semi, I can't buy much in Manchester any more for £90k so any advice on other towns to get good tenants and good rent?
For instance, I could buy a house in a town for £40k, but risk tenants with social problems, damage to property and not paying their rent... or I could buy in the same town for £70k to £80k and get better tenants... the latter is my preference.
I haven't bought or sold a property for 5 years now, so feel a bit rusty, plus everything is so different now from back in the olden days before Covid! Before that I bought and sold over 10 investment properties, mostly locally to me, over a period of about 10 years.
Have bought both at auction and on the open market, so not phased by either.
Any advice or experiences (good or bad) on places to or not to invest?
I have never borrowed money so am a bit nervous about mortgages, so again, any advice or experience would be very much appreciated.
I live on the South Coast near Chichester, so am a long way from Manchester, but have managed happily with my two current Manchester properties for the last 10 years with the help of a good agent, so again, any recommendations for good management greatly appreciated.
Thank you so very much in advance
I have three mortgage free BTL properties and want to start increasing my portfolio.
Two are in Openshaw, Manchester, both 2 bed terrace, both bought for £70k each, approx 10 years ago, now worth around £130k each, and bringing in £650 pcm each.
I've been told I can mortgage one house for £90k or would it be better for me to spread between both properties?
I want another 2 bed terrace or semi, I can't buy much in Manchester any more for £90k so any advice on other towns to get good tenants and good rent?
For instance, I could buy a house in a town for £40k, but risk tenants with social problems, damage to property and not paying their rent... or I could buy in the same town for £70k to £80k and get better tenants... the latter is my preference.
I haven't bought or sold a property for 5 years now, so feel a bit rusty, plus everything is so different now from back in the olden days before Covid! Before that I bought and sold over 10 investment properties, mostly locally to me, over a period of about 10 years.
Have bought both at auction and on the open market, so not phased by either.
Any advice or experiences (good or bad) on places to or not to invest?
I have never borrowed money so am a bit nervous about mortgages, so again, any advice or experience would be very much appreciated.
I live on the South Coast near Chichester, so am a long way from Manchester, but have managed happily with my two current Manchester properties for the last 10 years with the help of a good agent, so again, any recommendations for good management greatly appreciated.
Thank you so very much in advance
Edited by Posh Porsche on Thursday 26th May 10:53
Edited by Posh Porsche on Thursday 26th May 10:54
Edited by Posh Porsche on Thursday 26th May 10:55
Posh Porsche said:
I've been told I can mortgage one house for 90k or would it be better for me to spread between both properties?
Yes you can, no problem.Edited by Posh Porsche on Thursday 26th May 10:53
Edited by Posh Porsche on Thursday 26th May 10:54
Edited by Posh Porsche on Thursday 26th May 10:55
No benefit in spreading it around both properties you would just be doubling the number of fee's and things you'd need to do....
Posh Porsche said:
I live on the South Coast near Chichester, so am a long way from Manchester, but have managed happily with my two current Manchester properties for the last 10 years with the help of a good agent, so again, any recommendations for good management greatly appreciated.
In terms of agents I've experienced bot the bad and the good. I'd recommend Ryder and Dutton.For 10% they'll do the vetting/sign up/rent collection. Within that they'll also provide a 15 month rent guarantee as well as cover all eviction costs (should the need arise). For an additional 5% they'll do the full management service (ie sort out repairs and stuff). However as I live fairly local and have access to reliable tradesmen I do that bit myself.
Countdown said:
Posh Porsche said:
I live on the South Coast near Chichester, so am a long way from Manchester, but have managed happily with my two current Manchester properties for the last 10 years with the help of a good agent, so again, any recommendations for good management greatly appreciated.
In terms of agents I've experienced bot the bad and the good. I'd recommend Ryder and Dutton.For 10% they'll do the vetting/sign up/rent collection. Within that they'll also provide a 15 month rent guarantee as well as cover all eviction costs (should the need arise). For an additional 5% they'll do the full management service (ie sort out repairs and stuff). However as I live fairly local and have access to reliable tradesmen I do that bit myself.
I use Edward Mellor in Manchester... 10% fully managed although I have a good reliable builder who lives in Stockport and does most of the maintenance (even though that is included in the 10%, I trust my own builder more and he knows the properties well, but have EMs back up should I need it), but think I would need a different agent, and perhaps also tradesmen, if I went to a different city.
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