BTL/Rental property investing is probably the most popular and most well known property strategy in the world. In this scenario, a property is bought and rented for monthly rental profit.

Features

1. Generates wealth

2. Stable and dependable income

3. Does not require much time investment

4. Many responsibilities could be outsourced to others

5. Does not allow you to recycle your deposit

6. Profit may be low depending on location

7. Property prices may not rise significantly enough, or even fall

8. Property needs to be sold to get the deposit back if it has not gone up in price

How would I do it?

I personally favour the buy, refurbish, rent, refinance and repeat strategy to the BTL.

Scenario:

I could buy a property for £60,000 and rent it out for £500/month and I would be making £300 profit every month. Simple, but my deposit capital would be stuck in the property until sale.

 

You can use the calculator below to do the calculations and estimate the profit for this strategy.