This is as simple as buying a house, renting it out, and earning returns in excess of 20%. On top of that, the nature of property means you get paid again in capital appreciation, a gains with time strategy.
HMO – House of Multiple Occupation.
This investment strategy is ideal strategy for its cashflow. The investor rents out property to more than one person on a room by room basis. All bills are included for the tenant and as such the property will rent out for a far higher amount than on a single let basis. The Return On Investment for HMO amounts to 30%.
BRR – Buy, Refurbish, Refinance.
With this strategy, Buy a property Below Market Value, add value to it by refurbing the property, then take lending out (Mortgage) at a higher value paying you back for your purchase, legal fees and refurb costs. You then rent the property out, get some cash flow and massive ROI.
This is a creative strategy because getting the refurb completed and the end value right is key here with Return On Investment amounting to 50%, and £150+ per month from rent. It also allows you to pull all or most of your initial cash back out so you can invest again.
DEVELOPMENTS AND CONVERSIONS – A mix between BRR/HMOs/BTLs.
Imagine having massive ROI and cashflow? When you scale up BRR, you end up converting old buildings into flats or preferred accommodation or building houses from the ground up. You can either sell and make thousands in one deal or refinance and pull all, or even more, of your money back out. Then, because you have multiple units, there is more cashflow. These deals vary a lot but there should never be any money left in (infinite ROI), and cashflow can be from £500 – £50k per month.