Hi,
Any advice on this would be much appreciated. I currently have 80k I was thinking about investing in buy to let but I'm stuck on the following - bearing in mind the property in my area I am looking at is around £125,000 for a 1/2 bed house, rent on these houses is around the 550 mark.

Is it best to buy one and put a big deposit down and have a smaller mortgage or buy 2 with bigger mortgages and smaller deposits

Is it best with an interest only or repayment mortgage

I know I need to bear in mind that my rent should cover the mortgage/interest, lettings fees, and tax.

Thank you

Surely this isn't wise idea, building an empire on interest only mortgages? Never paying off any capital with the hope that properties will maintain their value and the inevitability that interest rates will rise over the next year or two? Risky business if you ask me.

I'd be tempted to put two smaller deposits down and get capital repayments underway, I am thinking of doing the same myself.

Why buy in your area?

Rentals anywhere have a bottom limit. House prices do not.

Here, in the NE, a two or three bed terrace goes for £300 - £350 a month.

BUT you can buy one for £25k. IN fact, there's a three bed in Ferryhill for £22k right now. Very good yield!

So, Louise, get thee up to the North East of England, buy three and get a management company to run them for you plus insurances to cover lost rent from unoccupied houses. None of that will cost you more than mortgage charges would have including interest. You'll have no debt, just a hod of house.

With luck you'll make £4.5k a year from each for a good ten, fifteen years and then Durham County Council will decide to knock them down and you get VERY good money for each when you tell then no, you'll take them to Compulsory Purchase unless they give you more. You do have the option to change your mind before they take you to the Beak.

I know this because this is what I did in 2012.

£13k pa income is pretty good from a £75k one off investment, I think.