Buy to let, whats a good return?

[TerrysNo2]

How do you calculate your return and what would you say is a good return rate on BTL?

So far I have done:

• rental income

• insurance costs
• 8% assumed maintenance costs
• interest only mortgage payments

= leftover/initial cash investment = return rate

Does that sound right?

Lack of income during voids? Tax on rental income? And stress test for when interest rates rise.

lack of income shouldn't be a problem as there is a lack of demand for this particular college (next door has been rented every year without gaps for the past 7 years)

stress test is a good point.