Types of High Cash Flow Property Investments strategies.

• HMO's

• Flipping Houses
• R2SA - Rent to Serviced Apartments
• BRR - Buy, Rehab, Rent
• Guaranteed Rent scheme
• Buy2SA

HMOs

An excellent choice for building out your property portfolio, an HMO (house of multiple occupants) is an excellent example of top property strategies in the UK. You simply rent out an entire property (with 4-5 bedrooms) from a landlord on a single-let basis and turn it into an HMO by yourself.

An HMO is a residential area wherein many people have separate rooms, but all live together under one roof. They are rented out to multiple tenants who pay rent individually for a private room and may have shared facilities like a bathroom and kitchen.

This method gives you a chance to generate multiple sources of income from different tenants at once, which results in high rental yields.

• No deposit needed

• No high upfront costs
• Small refurbishment costs

Pro Tip - Choose to let out to young professionals. The average tenancy length is 12-18 months, and it is observed that this demographic prefers to stay in a place for longer than students or contractual workers.

Flipping Houses

House flipping is when an investor purchases a property at a lower price (most likely an older home) that needs refurbishment and then refinances its value and sells it for a profit.

Flipping Houses involve complete home makeovers to boost the value and appeal to potential buyers. If you're focused on making a lump sum of money rather than long-term cash flows, then property investment strategies like flipping may be better suited to your needs. This property investment strategy relies on favorable market conditions with high demand.

To fully understand which property investment strategy is right for you, it may be a good idea to speak to financial advisors like P&A, who can clarify what each investment strategy involves.

R2SA - Rent to Serviced Apartment 

Rent to serviced apartment investments are when an investor rents out a place, converts it into a service apartment, and generates income from daily guest stays.

Instead of having a full-time tenant like other buy to let strategies, property investors will gain higher daily incomes from those travelling for holiday or business.

For UK investors, R2SA's are a great way to make money.

P&A specializes not only in finding the best property for SA investments but we also set up the property, refurbish it in modern style and market your property on all the major platforms for guests to book your apartment. We have our own dedicated corporate booking platform Pluxa.co.uk where we list all the serviced apartments, which receive regular bookings.

P&A offers up to 10-12% ROI on this particular property investment strategy as the profits are very high. Our bookings and occupancy are always maintained at a 95% occupancy rate.

This is an amazing hands-off strategy with no need to deal with tenants. With the right support system, popularity and demand, it is entirely possible to make large returns from this business strategy.

BRR - Buy, Refurbish, Refinance

BRR is a popular long-term property investment strategy. Initially, the process involves performing the steps that constitute the acronym BRR. This model is made up of 3 elements -

• Buy - Buy properties 'Below Market Value' (BMV) - old but structurally sound. On day 1 itself you're in profit!
• Refurbish - Renovate the property! Modernize with new tiling, wiring and appliances, decor. All of this adds value to the property price.
• Refinance - You can remortgage the property to pull your original investment out and earn as much as 25-30% profit margin.

In theory, by following this method, one small pot of cash can build a portfolio over time that can give you both cash flow and capital growth, ensuring lifelong wealth through passive income. Using BRRRR strategy, a successful real estate investor can genuinely build a real estate empire!

Guaranteed Rent scheme

This is a great above-market value way of making money on your property. The guaranteed rent scheme works in a way in which you give your space out to an established real estate agency that always has occupants and will look after the interiors and any minor repair work in the house.

As a landlord, you will sign a guaranteed rent contract for, let's say a 5-year period, and you'll continue to get money on a stipulated date every month, for the next 5 years. It doesn't matter if the place is vacant or occupied, your money is as the name suggests, guaranteed!

If you're a vendor or landlord tired of finding and dealing with tenants for your property, get in touch with P&A Property Sourcing Ltd. Based in Birmingham, West Midlands, we're the answer to all your property letting issues. By offering guaranteed rent for up to five years and a free refurbishment of your property if required, we're able to provide a hassle-free win-win service to all our clients across the West Midlands.

We offer a guaranteed rent scheme for up to 5 years. Even if your Birmingham property is empty, you get paid every month!

Buy2SA - Buy to Serviced Apartments

Increasingly popular and with return rates up to 20% and appreciating home values, this is undoubtedly one of the best property investments you could make. Buy2SA involves purchasing a property and turning it into a serviced apartment for daily income from multiple occupants.

These rooms are let out on a short-term basis and rented by those seeking somewhere to stay while on holiday or in town for work. These properties put their listings out on websites like Airbnb.

Serviced apartments that you own allow investors to make attractive rentals, and there are also better tax benefits in this model.

It offers two types of return on investment –

• Rental Returns
• Capital Appreciation

So now that you've identified your goals, understanding your strategy will get you from present-day circumstances to tomorrow's positive outcomes wherein your high monthly cash flow is assured.

ONS forecasts suggest that the Birmingham population will grow by almost 20% by 2039. Birmingham needs around 89,000 new homes by 2031, but space for only 51,500 has been identified within the city itself. There will always be a market for this. Choose P&A Property Sourcing, a trustworthy authority in the market, to keep your monthly cash flows high and consistent.