How Stephen Pyfinch Makes £5,000 a Month From a Property He Hasn't Bought Yet

Table of Contents

• The £925,000 Property That Nobody Seemed to Want
• An £800,000 Price Without Buying Immediately
• How He Turned It Into a Profitable Business
• Why Understanding the Seller Matters Most
• What You Can Learn From Stephen's Deal
• Could Purchase Lease Options Grow Your Portfolio in 2027?
• Frequently Asked Questions

What if you could take control of a property worth hundreds of thousands of pounds, earn a substantial monthly income from it, and agree to buy it later? That might sound unusual, especially if you are used to traditional buy-to-let. There, you save a deposit, arrange a mortgage and complete the purchase before you see any rent.

But at Property Magic Live in September 2026, I interviewed Stephen Pyfinch. Stephen is an experienced investor and a Property Mastermind graduate, and he shared a fascinating example of how a purchase lease option can work. He agreed an £800,000 purchase price on a 12-bedroom property, with monthly payments of just £2,000 to the owners. By changing how he marketed and ran the property, he reported just over £5,000 a month in net profit. The interesting part? He had not actually bought it yet.

The £925,000 Property That Nobody Seemed to Want

Stephen is from Nottingham and has invested in property for around 20 years. He originally worked in IT. Over time, he built his portfolio in a fairly traditional way, saving deposits to buy single-lets before moving into HMOs and other strategies. He also completed our Property Mastermind Programme as part of Mastermind 23. Over the years, he has developed real experience in finding and structuring deals.

The opportunity he shared involved a 12-bedroom, all-en-suite property. It sat near a boutique hotel he already owned. Stephen knew the owners, who had run it mainly as accommodation for trainee pilots and others in the local aviation industry. Unfortunately, their business model was not performing as they had hoped.

The owners had first advertised it for around £925,000. But after more than a year on the market, buyers had fallen through and the owners were getting frustrated. They were also approaching retirement and lived almost 100 miles away. Managing the property meant long journeys, dealing with maintenance and spending time on a business they wanted to leave behind.

Stephen could see they had a problem. He could also see an opportunity. He owned a similar property less than a mile away. So he knew from experience that the building could generate far more income if it was run differently. Rather than simply negotiating a lower price, he explored a completely different way to structure the deal.

Key takeaway: The owners were motivated sellers with a problem, not just a price. Stephen spotted that before he thought about the numbers.

An £800,000 Price Without Buying Immediately

Stephen eventually agreed a purchase price of £800,000. Alongside it, he set up a purchase lease option that let him operate the property before completing the purchase. Under the agreement, he pays the owners £2,000 a month.

This is where the deal gets interesting. Had Stephen bought the property outright with a commercial mortgage, his monthly finance costs could have been much higher. Instead, the agreed monthly payment let him run the business, improve its performance and earn income, while keeping the option to buy later.

It also solved a real problem for the owners. They wanted to step away from the day-to-day running of the property, but they had struggled to achieve a straightforward sale. The lease option offered a possible solution for both sides.

Of course, a purchase lease option is not a way of getting a property without paying for it. The legal agreement, responsibilities, costs, purchase terms and risks all need to be properly considered and documented by suitable professionals. But Stephen's example shows something important. The terms of a deal can sometimes matter just as much as the price.

Key takeaway: A purchase lease option let Stephen control and run the property for £2,000 a month, with the right to buy it later. Done properly, the terms can matter as much as the price.

How He Turned It Into a Profitable Business

One of the biggest changes Stephen made was to the target market. The property had relied heavily on bookings from pilots, who often wanted cheaper places to stay. Stephen saw a chance to position the building as large holiday accommodation for groups. With 12 en-suite bedrooms, a hot tub and a games room, it could appeal to families and groups celebrating birthdays, weddings and other occasions.

He used Sykes as a booking agent. That let the property reach a different audience without Stephen handling every booking himself. During our interview, he explained that the property had been booked for all but four weekends that year. He had also only needed to visit roughly every couple of months over the previous six months.

There were still occasional maintenance issues and neighbour complaints, as you might expect with large group accommodation. But Stephen described the business as relatively hands-off. Most importantly, when I asked what the property was generating, he reported just over £5,000 a month net. That is after the £2,000 monthly payment and the operating costs he discussed.

That is an impressive result from a property he was running under an option agreement, rather than one he had already bought. It is also a useful reminder. A building's income can depend heavily on how it is used, marketed and managed.

Key takeaway: Stephen changed the market, not the building. New positioning and a booking agent turned a struggling let into a reported £5,000 a month.

Why Understanding the Seller Matters Most

One of the key lessons from Stephen's interview was this. He did not simply find a property and try to force a purchase lease option onto it. He understood the owners' circumstances.

They had a property that was not producing the results they wanted. Previous buyers had let them down. They were travelling long distances to manage it, and they wanted to move on. Stephen had something valuable to offer: local experience, knowledge of the accommodation market, and a way for the owners to step back while keeping an agreed future sale.

This is why I always encourage investors to ask better questions. What is the real problem the seller is trying to solve? Do they need all their money now, or would they take it later? Would a reliable monthly payment and less responsibility matter more than a conventional sale straight away? Sometimes the answers reveal opportunities that are not obvious from the estate agent's listing.

A purchase lease option will not suit every seller or every property. It does not remove the need for careful due diligence. But in the right circumstances, it can create a solution that a traditional purchase cannot.

Key takeaway: Stephen did not force a strategy onto a deal. He understood what the sellers really needed, then matched a lease option to it.

What You Can Learn From Stephen's Deal

Three things stand out to me. First, know your market. Stephen recognised the property's potential because he already ran similar accommodation nearby. Without that experience, it would have been much harder to judge whether the numbers were realistic.

Second, look for the problem behind the sale. The owners were not simply selling a building. They wanted relief from the time, effort and uncertainty of running it.

Third, be flexible about how a deal is structured. Stephen did not need to buy the property to start operating it. By agreeing terms that worked for both parties, he created an opportunity to earn income while working towards a possible future purchase.

It is worth remembering that Stephen is an experienced investor, and this is one specific case study. It is not a typical or guaranteed outcome. The reported profit reflects his circumstances and performance at the time of the interview. Property investment involves financial, legal and operational risks, and results can change. Even so, his story shows why property investing is about much more than a deposit and a mortgage.

Key takeaway: Know your market, find the problem behind the sale, and stay flexible on structure. That combination is what made the deal work.

Could Purchase Lease Options Grow Your Portfolio in 2027?

I hope you found Stephen's case study inspiring, and that it shows how powerful purchase lease options can be. As Stephen has shown, you can take control of valuable properties, earn monthly cash flow and grow your portfolio using relatively little of your own money. You do not always need a mortgage to buy the property straight away.

His deal is just one example of what is possible when you understand how to find motivated sellers and structure agreements that work for everyone. If you would like to learn how to use purchase lease options to grow your own portfolio in 2027, I would love to invite you to some special live training.

During the training, I explain how purchase lease options work, how to find suitable opportunities, what to say to property owners, and how to structure deals. The aim is to help you build your portfolio without relying on a traditional mortgage for every purchase. Whether you are just starting out or already own several properties, this strategy could open up opportunities you may have overlooked.

Live Purchase Lease Options Training for 2027

Learn how purchase lease options work, how to find the right opportunities, what to say to owners, and how to structure deals that grow your portfolio without a mortgage for every purchase.

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Frequently Asked Questions

What Is a Purchase Lease Option?

A purchase lease option, or PLO, is an agreement that lets you control and operate a property now, with the right to buy it at an agreed price later. You usually pay the owner a monthly amount in the meantime. Stephen used a purchase lease option to run a 12-bedroom property before completing the purchase.

How Does a Purchase Lease Option Make Money?

You operate the property and improve its performance, then keep the income after your monthly payment and running costs. Stephen repositioned his property as group holiday accommodation and reported just over £5,000 a month net, after the £2,000 he pays the owners.

Do You Need a Mortgage or Deposit for a Lease Option?

Not to start operating the property. You agree the terms and the monthly payment, and the purchase happens later. That said, a lease option still involves costs and commitments, so you must plan carefully and take proper advice.

Are Purchase Lease Options Risky?

They carry risk, like any strategy. The legal agreement, responsibilities, costs, purchase terms and risks all need to be considered and documented by suitable professionals. A purchase lease option also does not remove the need for careful due diligence.

Is Stephen's £5,000 a Month Guaranteed?

No. Stephen is an experienced investor, and this is one case study, not a typical or guaranteed outcome. The reported profit reflects his circumstances and performance at the time of the interview. Property investment involves financial, legal and operational risks, and results can change.

Final Thoughts: Look Beyond the Deposit and the Mortgage

Stephen's story is a great illustration of why property investing is about much more than finding a deposit and applying for a mortgage. He took control of an £800,000 property, created a strong monthly income, and did it without buying the building straight away.

The deal worked because he knew his market, understood the sellers and stayed flexible on structure. Those are skills any investor can develop over time.

Property investment involves financial, legal and operational risks, and results can change. Stephen is an experienced investor, and his result reflects one specific case study rather than a typical or guaranteed outcome.