Christian Finance Academy · Module 6 · An illustration, not advice ·
Model the deal before you commit a single pound
Two engines, one job: see whether a property deal actually stacks up. Buy · BRRR · HMO models the capital you deploy, what refinancing pulls back out, and your return on the capital left in. Rent-to-Rent · Serviced Accommodation models setup cost, the occupancy-driven P&L, and the break-even occupancy that tells you how robust the deal is.
"By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures."
Proverbs 24:3–4
1The purchase
£
£
£0 for a ready-to-let BTL.
£
The value you'll refinance against.
2Stamp duty (SDLT, England)
Investors usually pay the 5% additional-dwelling surcharge (companies always do).
3Other acquisition costs
£
£
£
£
£
Bridging interest/fees, pre-letting voids, licence fee, etc.
4Refinance
75%
75% is the usual BTL/HMO maximum. The results also stress-test 10 points lower.
%
5Rental income & running costs
£
£
%
%
£
£
For a bills-inclusive HMO this is significant; for a single let it may be near zero.
1The deal
£
2Revenue
£
70%
£
Steady monthly sublet income (e.g. R2R-HMO) — occupancy is assumed stable, so there's no nightly break-even line.
3Setup costs · one-off
£
£
£
The lease deposit is added automatically from Step 1.
4Operating costs (monthly)
£
£
%
£
£
£
%
5Tax
Short-let & R2R income is normally trading income: the rent you pay the landlord is fully deductible and Section 24 doesn't apply. Tax shown is illustrative — confirm classification, VAT and structure with an accountant.
This is an illustration, not financial, tax, mortgage or legal advice, and not a personal recommendation. It models the numbers you enter to help you assess a deal before committing — it does not tell you whether to proceed. SDLT figures use 2026/27 England rules (standard bands; first-time buyer relief 0% to £300,000 then 5% to £500,000; the 5% additional-dwelling surcharge; +2% non-UK resident surcharge; commercial/mixed-use 0/2/5%) and must be verified at gov.uk before any transaction; Scotland (LBTT) and Wales (LTT) differ. Rental, refinance, occupancy and cost figures are your assumptions, and real outcomes vary with the market, valuations and execution. Rent-to-rent/short-let tax treatment (trading vs property income), Class 4 National Insurance, VAT registration (£90,000 threshold) and company structure all depend on your circumstances — take regulated professional advice. Use a regulated solicitor for conveyancing and leases, and a specialist broker for finance. Christian Finance Academy · Module 6: Mortgages & Property · Topics 1, 3, 4, 5 & 7.