Guide to Finding the Right Buy to Let Properties for Sale

If you are looking for buy to let properties for sale, you're doing a smart thing. This type of property offers you the opportunity to realise a great return on investment that often outperforms other types of investments. Moreover, if you are careful about looking for bargains, your yields can be even greater.

Keep in mind that there is a right and wrong way to do things. Cheap houses do not always make great investments if they are in poor condition, located in undesirable neighbourhoods, and so on. You need to be selective about what you buy and how much you pay for it.

Everything Starts with Research

If you ask any investor who makes good money on buy to let properties for sale, he or she will tell you everything starts with research. If you throw your money into a property without finding out everything you can about it, you are likely to limit your return on investment, if not kill it altogether.

For example, you should always research local rental rates on similar houses in the same general area. Why? Because you'll be using information about the local rent to buy properties that will return similar amounts after your purchase. Local rental rates will tell you how much you can expect in income which will, in turn, tell you how much to spend to purchase the property.

Other things you need to research include:

  • the cost of renovations and repairs
  • any potential tax or title issues
  • neighbourhood appeal
  • local property ordinances.

Financing Options

One of the most attractive things about this type of investing is that you do not have to be a professional landlord with a huge cash reserve. It is possible to secure bank financing for buy to let properties for sale as long as the price is right. Just remember the 125% rule.

This ‘rule’ is a standard mortgage lenders use to decide whether an investment property is a viable mortgage risk or not. The bank expects the landlord to take in an amount of rent at least 25% greater than the monthly mortgage payment. Anything less than that represents a poor return on investment.

Of course, it is possible to secure financing from other sources, including family members, friends, and other individuals who might want to invest in your business. If you can pay cash, that's even better.

Partnering with an Agent

Fruitful Property recommends you partner with an agent if you want the best buy to let properties for sale. You can go it alone, but you likely will not do as well. Companies like ours specialise in doing the research and making the enquiries necessary to get you the best bargains with the least amount of hassle.

As such, Fruitful Property does not recommend house auctions as the main source for acquiring properties. There are too many potential problems with these properties to make them worth the trouble. Rather, we prefer the time-tested strategy of seeking out bargains with as few potential hassles as possible.

If you are ready to start looking for buy to let properties for sale, we are here to help. Fruitful Properties will give you our best effort along with sound investment advice and reliable risk management strategies. The sooner you contact us, the sooner we can make you a property investor.

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Nick Hopkinson

by Nick Hopkinson - Property Investment commentator and Fruitful founding director.

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