After many months of watching, listening and taking advice to form a strategy for my property investment plan, I have finally decided to post!! I just wanted to see what experienced property investors think about my current situation and what would be the best way to start.
Just a bit of background....
I'm 20 years old, based in England (so processes may be slightly different), went to University and dropped out after 1 year because I wanted to start a business. After I dropped out, I soon established a small web design company generating around £20,000 ($30,000) a year after only 9 months. However, I quickly realised after 9 months that I haven't created a business, I have created a job and thus, looking to start a new venture into the world of property investment (or as you guys say, Real Estate).
This leads onto my question of where do you guys think I should start with only £20,000 ($30,000) sitting in the bank?
This is the strategy I have in mind (please advise):
- Buy unloved or rundown large houses below market value (sell in my new area at auction anywhere between £130,000 upwards) in great rental areas (high population of young professionals, students, etc);
- ADD VALUE!! Convert into either HMO's (house of multiple occupants) OR self contained 1-2 bedroom, 1 bathroom apartments depending on location and building structure / floor plans.
- Through the added value, cash out through remortgaging the property and using this money to then invest in the next one.
- Hold all of these properties in my portfolio for the rental income generated.
PS: I'm moving across country to a city called Manchester in September 2016, so it will be a completely new area / market. I was thinking of becoming an real estate agent for 1-2 years to learn the property market in this new area, make contacts through networking, learn how to source great deals, etc, etc. Any thoughts on this too?
And just to add, I have already got a mentor with a portfolio of 16 rental properties showing me the ropes and helping me build a team.