How to build a property portfolio

A property portfolio is a collection of multiple rental properties owned by an individual or corporation for the purpose of investment. Rental income is received for the properties creating cash flow and passive income.

The aim for many property investors is not to stick to one investment property but to build a successful portfolio made up of several rental properties. This can be a great way of building cash flow and planning for retirement.

Budget will dictate a lot of how you build a property portfolio, so it is important to make your money work as hard as possible in order to meet your targets. Property isn’t a get rich quick approach and you need funds to invest to get started. As with every investment, there is risk involved which makes working with the right people even more essential.

Discuss your budget and purchasing power with a mortgage broker. Buying with a mortgage can be a great way of leveraging your cash to purchase more than one property and as such, build a property portfolio.

Do your homework. Research potential areas and look further afield from where you live as you may find better options to buy, speak with local agents and other landlords in the same area, link with a reputable sourcing agent with expert knowledge in that particular area.

The right property sourcing agent will be able to discuss prices in their respective areas, rental demand and best approach for the kind of property you are looking at. Property Guru are not only sourcing agents but offer refurbishment project management as well as lettings and management.

Another approach is to purchase below market value property, increase its value through refurbishment and then refinance at the new value to pull most of your initial investment back out to invest elsewhere. The amount of cash required for BRRR varies hugely per deal, so it is best to speak with your sourcing agent to discuss current options.

For more information on how to build a property portfolio, the Property Guru team are on hand to help.