Need advise from Landlords/Property Investors

[Help]

Hi,

I have a house which I purchased a number of years ago and has no mortage on it. It is currently rented out for £300 a month. I would like to get into buying and selling property but I have lost my current job and have no savings. My only income at the moment is this rent which I get. I am currently living with my friends. The house which I am renting out can potenitally be let out for £500-600 a month if it was in a better condition. The tennant in my house is on a periodic tenancy and recieves housing benefit.

I would like to know from you property people what would be a good strategy for me to either do up the house and rent it out for more or aquire another property which I can sell on.

I need your help as I would really like to get into property dealing but have no money.

Thanks,

Lisa.

[BigP]

I think you should both fix-up your property (rehab), and buy more property. You want to be able to rent your property out for the most money possible, so rehabbing and upgrading is a great idea. As for acquiring new property, you should certainly go ahead with this. If you do not have any money, you can take a loan off of your property and finance the new one, or you can find others to invest and go partner with you.

There are many options out there. My site is focused on investing - worth a visit. Otherwise, start slowly and you'll be well on your way. Good Luck! :cool:

[P.Pilcher]

You will have to do your sums very carefully to determine the best strategy for you: You only have one property and as soon as you decide to do any work on it, you loose your tenant and your only income, furthermore, the money you borrow will serve to reduce your future income because of the interest charges it attracts. I would suggest that you first get another income stream by getting a new job. Then you can afford to loose that tenant and get your property done up and rented for its full figure. It is then in a position to secure the maximum mortgage possible to fund your future plans. At the moment rental returns are hard pressed to pay mortgage interest let alone the other costs of renting out so if you invest what you can borrow on your present property it will be a long time before you will see a return. Property prices are now beginning to fall(?) so you have plenty of time to make up your mind what to do once you have your property earning its full potential.

P.P.