20 Years Old With £20,000 ($30,000)

[Jack Wiggins]

Hi Everyone,

After many months of watching, listening and taking advice to form a strategy for my property investment plan, I have finally decided to post!! I just wanted to see what experienced property investors think about my current situation and what would be the best way to start.

Just a bit of background....

I'm 20 years old, based in England (so processes may be slightly different), went to University and dropped out after 1 year because I wanted to start a business. After I dropped out, I soon established a small web design company generating around £20,000 ($30,000) a year after only 9 months. However, I quickly realised after 9 months that I haven't created a business, I have created a job and thus, looking to start a new venture into the world of property investment (or as you guys say, Real Estate).

This leads onto my question of where do you guys think I should start with only £20,000 ($30,000) sitting in the bank?

This is the strategy I have in mind (please advise):

- Buy unloved or rundown large houses below market value (sell in my new area at auction anywhere between £130,000 upwards) in great rental areas (high population of young professionals, students, etc);

- ADD VALUE!! Convert into either HMO's (house of multiple occupants) OR self contained 1-2 bedroom, 1 bathroom apartments depending on location and building structure / floor plans.

- Through the added value, cash out through remortgaging the property and using this money to then invest in the next one.

- Hold all of these properties in my portfolio for the rental income generated.

PS: I'm moving across country to a city called Manchester in September 2016, so it will be a completely new area / market. I was thinking of becoming an real estate agent for 1-2 years to learn the property market in this new area, make contacts through networking, learn how to source great deals, etc, etc. Any thoughts on this too?