This would give you a 6.4% yield, although from that you must deduct buying (& selling) costs, legal fees, mortgage costs, insurance, maintenance, vacant periods (together with advertising or estate agent fees) and any tax that may be due on profits. You need to make a realistic estimate for these to get the true expected yield, which I would guess to be nearer 5%. Is this an acceptable return on your investment?

Do you feel there is scope for a significant capital gain on the property, as this may be where the real value lies?

Decide what your goals are upfront, work out a plan to achieve this and be realistic about the costs and potential pitfalls involved.

From my perspective, I found renting out property too much effort for the return, but many others build substantial property portfolios - usually by constant re-mortgaging and buying additional properties. A high risk strategy, in my view, but it can work if you get the timing right.

Good Luck.