What property strategy is right for you? Rent to Rent HMO (R2HMO), Rent to Rent Serviced Accommodation (R2SA), Buy Refurbish Refinance Rent (BRRR) or Deal Sourcing? Take this quiz to find out. It’s just a bit of fun, so don’t take it too seriously!
Out of these four property strategies, which one suits you the best?
Did your answer surprise you? Was it accurate? Let me know in the comments!
What are these property strategies?
1. Rent to HMO
R2HMO is where you rent houses from landlords and give them a set rent for the whole property. You will then rent them out by the room. This benefits landlords as you takeover the property for them, so they don’t have to worry about voids and maintenance.
2. Rent to Serviced Accommodation
R2SA is very similar to R2HMO but rather than renting out rooms you rent out the property for short lets. You will ensure a cleaner goes in between each stay plus handle maintenance and bookings. The benefit to the landlord is exactly the same as for R2HMO.
3. Buy Refurbish Refinance Rent
The BRRR strategy involves buying houses in need of renovation. You do this with bridging finance or your own cash, refurbishing them to a high standard and then refinancing them with a buy-to-let mortgage to get your money out or repay the bridging company. If you do this right, none of your own money will be left in the deal. You can then rent out the property.
4. Deal Sourcing
Being a deal sourcer involves finding and negotiating property deals. You will then sell them on to investors. You will need to build up a list of investors for this one. You will also need to become legally compliant which means registering with a property redress scheme, having correct insurance, registering with anti-money laundering and the Information Commissioner. Until you do, you can co-deal source by passing potential deals to compliant sourcers.
There are of course a host of other property strategies such as single-lets, development, commercial real estate and much more. This quiz is just a starting point and mainly a bit of fun. Most of the strategies featured here can be done with relatively little money. It is worth doing more research into them and seeing if they are right for you. Also please keep following this blog for more information about these topics.