New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About 2 weeks ago 95
I became an accidental landlord in October 2014. I bought myself a one bed property in Surrey in December 2012, and had no intention of ever making property a business. However, when I approached my mortgage broker last year to discuss a switching deal after my fixed rate came to an end, he mentioned that the property had risen substantially in value and that I had enough equity to buy another property, so I did. I now rent out the property I bought in 2012 and I have bought myself a two bed flat in SW London.
I am now really keen to expand my portfolio and the dream is to one day be able to give up my day job, and be able to live off the income my property portfolio generates.
My calculations predict that I should be able to buy my second BTL in 2017/18 (market dependent) however I am aware that I may be cutting it fine with regards to cash flow. My current rental property doesn’t generate much cash after mortgages/ground rent etc, however the capital appreciation is good.
Should my next property be an income property to give me the cash in the bank to cover any unexpected costs that may arise?
Any advice on how to best expand my portfolio at an early stage whilst also limiting the risks of running out of cash would be much appreciated 🙂
Thanks in advance
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