20/06/2022
ROTI: Return on time invested.
I had a great conversation recently at a networking event with someone looking to get started in property. I'm no expert but one piece of advice that I gave them was not to undervalue the return on time invested. Yes, Rent to Rent HMO can bring Β£500 a month per property, but when you are self-managing, they can be very very time and energy-consuming.
The house on the left, after all costs only cash flows Β£400 a month and has for the last 18 months...but I have spent maybe 2 minutes a month checking the rents arrived, plus the property's value has gone up over 13% per annum in this area.
It's not enough to go sailing around the world (yet), but if you consider the time vs cash in my pocket, the hourly rate on these little buy-to-let properties shouldn't be sniffed at.
We have just picked up 2 more BTL deals like this one we are currently looking to raise private finance for. If you want to know how we got into property, DM me!