When all is said and done, there are only 3 models of BTL. Which one you do is down to (a) how much you have to invest, (b) what sort of returns your want (c) your attitude to risk/hassle

As with other types of investments eg stocks and shares, generally, the higher the risk and hassle, the higher the income (hence return on your investment)

So am I going to share some of these “insider secrets” (which they are not)

Yes of course!

The tried and tested model is letting a house to a professional working couple or a working family as a single let. This is seen as the most stable model. It suffers from 2 problems. (a) Your returns and yields will be average so if you are looking to replace a decent salary with this income from model, you will need a quite a few of these (b) its an all or nothing model i.e. if the house is empty (void), you get no income

In addition to the above, the recent changes is tax mean that after you charged tax for rental turnover (not profit), you may have very little cashflow

So what are the real alternatives. In reality, there are just 2;

– HMOs
– The LHA strategy (aka Advanced LHA, aka 2 PLUS 2)

In the next blog, I’ll describe The LHA strategy