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Original poster

Feel this is my Big Opportunity ( no pension etc Sahm) to Make some money WWYD

17 replies

Gobbolinocat · 26/04/2017 20:40

I have inherited a shop and a flat. Flat needs significant work, ie new kitchen, bathroom however probably some slight reconfiguration as well. Bathroom is teeny, no bath just shower. Large bedroom, and large living dining area. Probably needs electrical work.

There will be aprox £8 grand cash too.

I can use the 8 grand to do some work to it. With the view to rent it out and rent shop out - shop is in better condition.

Combined the rent from both would be approx £1100 a month.

I could sell the whole thing again aprox £140 grand and buy a small terraced house and rent that out with no work doing but rent would only be £650 PM ....from same value place.

I could also sell and invest in the house I live in which is worth a lot more, add loft room, do kitchen and sell to get better house...and pay off small mortgage but I feel its possibly better to hang onto other property?

I have no income at the moment - sahm and no pension. Any ideas?

OP posts:

MrsExpo · 26/04/2017 20:46

It depends on whether you need the income. In your shoes, I'd do up the property, rent for a while and see how things go in the next year or so. How old are your DCs? If your own home is suited to your needs, then keep it and the inherited property and maximise return from the rental income. You can always sell it at some point in the future. Could you sell a lease on the flat and rent the shop, or would that be too complicated? It's not a bad problem to have though.

RunRabbitRunRabbit · 26/04/2017 21:03

Do you have the skills and time for renovation. Doing all that for 8k could be tight.

Who owns the property you live in? You say you have a mortgage but no income. I'm wondering who would benefit from you paying off the mortgage.

Original poster

Gobbolinocat · 26/04/2017 21:07

The house is in DH name, I wouldn't pay off mortgage if we sold inherited one unless it was in my name also.
I would also use some rent to pay down mortgage but again would have it in my name also to do this.

I have no skills at all to do it up, am clueless but happy to learn, the property is also a long way from where I live.

DC are both under 10. The house where we live could do with extra bedroom ( we have one each but one is box room) if we added extra bedroom here however it would substantially increase our property value and where we live property far more expensive and in demand. However I have no skills to get job and really need this to work for me, if I can rent them out - even just tiny increase in our monthly income would substantially improve our Q of life. And I can hopefully start to put money into a pension.

What worries me is the work doing to the flat, getting bad tennants who might trash the place etc.

OP posts:

RunRabbitRunRabbit · 26/04/2017 21:33

Sell the flat and shop. Definitely. Remote renovation on a budget with no experience and no builder contacts is a the perfect recipe for disaster.

If I were you I would spend buy something easy to rent out near where you live. Ask some lettings agents what is always in demand.

I'd spend some on retraining so you can get a job (it sounds like you aren't happy about having no marketable skills).

If there were enough money left over I'd do the loft conversion.

RunRabbitRunRabbit · 26/04/2017 21:43

It might be a good idea to ask MNHQ to move this question to the property topic.

Original poster

Gobbolinocat · 26/04/2017 21:47

Thank you Rabit.

I couldnt buy a box down where I live for the money, whatever I bought it would have to be up north. As said I could buy a fairly good nick terraced house for same price but would get less rent up north

OP posts:

NeverTwerkNaked · 26/04/2017 21:54

Hmmm, an interesting dilemma (but a nice one to have!)

Am a property lawyer and a few things to think about before deciding to renovate and keep shop and flat:

legal and other costs - eg on grant of lease, dealing with tenants etc
void periods- there are likely to be gaps between tenants
tenants getting into arrears
dealing with the paper work - property repairs, regulations etc about letting, insurance et

Can be really interesting business, but not everyone will enjoy it!

Original poster

Gobbolinocat · 26/04/2017 21:59

Yes its nice to have but obv wish I had the relative still I dont want to fuck this up.

what does " grant" of lease mean?

Its currently for the shop - being advertised via an agency....I would have to also get agency to let to tennant for the flat, I assumed they would do lease and vet people...

hopefully as its going via agency I am hoping that would weed out any people who cant pay

as income would be bonus to us - we live within our means, hopefully any periods where it wasn't let wouldn't be a financial burden to us ....but again as never dont it - not sure

OP posts:

NeverTwerkNaked · 27/04/2017 06:45

Oh yes sorry, that came out sounding wrong

Ah if you have an agency involved that certainly cuts the hassle a bit. No one can guarantee a tenant (especially small businesses) won't end up in financial difficulty and not pay the rent though. Doesn't mean you shouldn't do it, but just make sure you go in with your eyes open.

Original poster

Gobbolinocat · 27/04/2017 08:26

That's OK I just feel like I huge amount of pressure. We have had huge problems with Tennant not paying in past, but it was was all done by relative and no credit checks etc. Before passed away it was put in hands of agency, to try and prevent people from who has no idea what the were doing.... Hopefully.

OP posts:

Original poster

Gobbolinocat · 27/04/2017 08:27

Also as property is a bonus we are not paying mortgage on it or relying on that income. It's empty now.

OP posts:

Dozer · 27/04/2017 08:29

Is the shop in a local area where small shops are doing well? If not I would sell.

Original poster

Gobbolinocat · 27/04/2017 08:45

Yes it is on reasonably good parade actually, relative never had much of a problem renting it out but he had some bad luck in last year. The shop doesn't worry me too much it's the flat and the work. Another alternative is to move up north, we like the area, we could buy much nicer house and I could try my hand at setting up business in shop

OP posts:

Original poster

Gobbolinocat · 27/04/2017 08:46

Most other shops have been there for years and years.

OP posts:

MNHQ

LornaMumsnet · 27/04/2017 10:50

Hi all,

We're just sending this over to money matters for the OP.

Ginorchoc · 27/04/2017 20:09

Does the unit have seperate access, you could sell the flat and let out the shop?

Original poster

GobbolinoCat · 03/05/2017 21:14

Ginorchoc, Yes, it does have separate access however in other respects its joined, it would cost to fully split them. And probably more legal work on drive access as shares drive.

OP posts:

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