This was a subject of an interesting presentation at the September PIN meeting in Manchester. Mike Ryan came along and discussed his strategy for multi let properties.
Mike came all the way from Kent to present to us at the meeting. I was very interested to attend the meeting as everybody knows that currently cashflow is king so I wanted to hear all about his strategy.
Mike was very clear that personal development plays an important part in being a property investor. You have to develop and educate yourself to grow as a person whilst you’re developing your property portfolio. If you develop a cash income for life (passive) then you are free to do whatever you desire.
He then stated that typically a multi-let produces 3 times the income as a single let property, now this made my ears prick up! His strategy is simple:
- Find undervalued properties in suitable locations
- Convert to multi-let
- Let asap after purchase
- Plan backwards
- Only buy properties that substantially increases your cashflow by £500
It all sounds very simple and straightforward and I liked this strategy.
Mike also has rules that he follows:
- Be risk adverse
- Buy well and hold for the long term
The UK population currently is 61 million this is set to grow to 72 million by 2050. Therefore property in the UK will always be in demand, so a long term strategy is the safest.
He stated the importance of systemitising everything and this helps with:
- The tenants know where they stand
- Redundancy – making your-self redundant!
I like Mike’s style because he renovates his houses to an excellent standard. He has a zero tolerance attitude to his tenants which is all stated in a welcome pack. Needless to say I’m sure he has mainly good tenants.
He left us with a quote that I really like “Aging is caused by the hardening of the attitudes”! So if you like to do something when you were younger then start that hobby again now! Just because you’re getting older doesn’t mean to say that you can’t do it. Just go and do it!