Investors Tool Kit
Your Strategy – what’s your plan
It’s especially important when you start building your property portfolio to know how you are going to do it. Otherwise you will find yourself running around all over the place trying to buy everything and ending up with nothing. For example:
Is it going to be a cash flow or capital growth strategy?
Are you going to buy and sell or buy and hold?
Do you want to use no money down, or no money left in or use a deposit?
Are you going to have single lets or homes of multiple occupancy (HMO’s)?
Here is my strategy; yours will be individual to you:
- I Buy and hold
- I want both cash flow and capital growth
- I’m using deposits – sauced by JV Partners
- Single lets only
- My tenants are LHA (on council housing list) there are 9000 on the waiting list
- I work the business around my family.
In addition to the above I also have a set of rules that I stick to:
- I only buy within a 10-mile radius
- 1 to 3 bedrooms
- Minimum of 25% below market value (BMV)
- Minimum of 9% yield
- High rental demand
- Good transport links
- No structural damage
