Is 6% yield on Buy to Let any good .

W

wheeler dealer

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I have some cash for investment and a property currently tenanted has come to auction in local town ,it looks ok value but has sitting tenants so is 40-50k under value if selling without tenants,
I am already a landlord so am aware of most pitfalls but should I be looking for a better return considering I probably wont rise the rent or wont be able with new rules ,the rent is about 150-200/month under market rates,
 
6% gross?
What's that net?
About 3%?
If so doesn't sound great to me for the potential hassle involved.
 
Can you add value? Refurb / extend?

If it was at market rate what would that look like?

What are the tenants like? Can you get a statement of income?

Will the tenants take a deal?
 
The house is 150k ,the rent is 800/month .
A similar house would make 200k+ and rent for at least 1000 ,the family in it ,it seems only 1 member is working so might be hard to rise the rent and dont want to push them into hap.
 
By statement of income on rent, I mean a sworn statement on rental income paid / unpaid / late / arrears over the period of the tenancy.

On those figures, I'd make a cash offer of 100k & see what comes back.
 
You can get yield of 6% gross in strong rental areas in Dublin, you'd should be looking for around 7.5% yield imo
 
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