IRC Section 1031 (a)(1) states: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”I believe that you could go in either direction really, it all depends on how soon you want to jump into the landlord game.

The most proven way to become a millionaire is to borrow a million dollars from a bank and have a tenant pay it back for you.Now go Break some necks and cash some checks! 

This is a proven strategy for socal and it serves a dual purpose.

All my research thus far has proven fruitless - seems as though most lenders to expats will only lend on properties in mainland UK.Any advice welcome.Thanks

Don't carry revolving debt or balances of more than 30% of your total credit worthiness, pay your cards on time, don't close old accounts and be sure to resolve an outstanding balance discrepancies that any of the 3 major agencies may be holding against you.I always advise on checking your free credit report once a year from each of the 3 reporting agencies to be sure there is no false information or accounts that you don't recognize. 

BiggerPockers has proven time and time again to be the best place to be for information on investing.

I don't respond to phone calls if I don't recognize the caller and those folk never leave a message.

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

I recognize many calculators use this method and it can work if the percentage varies based on market (rent, tenant class).  

In the scenario you're describing, the bank is looking at you alone and your ability to make the payments which is why they want to avoid the risk of you assuming property management duties without a proven track record as a property manager.