9:37 AM, 19th September 2014, About 8 years ago 41
I’m at the point of making a life changing decision, for the past 5 years I have managed to live quite comfortably off the rental income from a portfolio of 12 properties. I was fortunate enough to take out lifetime tracker mortgages and have benefited greatly from the exceptionally low Bank of England base rate. However I am fully aware that these low rates will not last much longer and so will need to find another source of income.
Like a lot of landlords, I am capital rich but cash poor. I have little equity in my portfolio but a significant amount in my private residence. I am self employed and whilst the business makes money it is not enough to live on.
Therefore my plan is to sell my house and hopefully raise £250,000. I intend to move into rental accommodation and use the money raised to buy houses at auction with cash. I would then renovate and sell on. With my lump sum I hope to buy 2 maybe 3 houses straight off and hopefully turn these around in 6 months then, with the money raised buy a further 2 or 3. This way I hope to turn over up to 6 houses in a year with a view to taking £10k – £15k in profit per house.
As you will appreciate this a huge decision for me and my family and I hope I have planned for everything but have I missed something?
Please tell me now before it’s too late.