Regularly Review & Refine: Strategies for growing your portfolio

In this article, I am going to outline two strategies to grow your income and your portfolio. Then, next week I will break these down into more detail, adding other tools you can use such as re-mortgaging, pulling out equity, and other ideas.  

Which is the best of the two strategies for you? This depends on your goals and situation, one could be seen as more aggressive, whilst the other is more conservative.  

Ok, let’s get back into it 

Remember how your "cash in the bank" grows after year four in Example 1 (in the previous article)? Have included the table again below, for reference.  

That's where things get exciting! Let's explore your options: 

1. Accelerate Growth: Buying More Properties 

As you noticed, you can leverage rental income from your initial properties to purchase additional properties. In Example 1, this jumps you from five to six properties in year five. 

Fast forward five years, and your portfolio's income allows you to buy seven more properties, bringing your total to 18! This generates significant income, potentially reaching £365k annually (£30k per month).

2. Cash flow is king: Paying Down Mortgages 

Reducing mortgage payments increases your monthly income. This creates a positive feedback loop: higher income allows for faster mortgage repayment which further increases your income. 

Taking the £500k "cash at bank" from year ten and applying it to your mortgages could dramatically lower your monthly payments and boost your income to around £13,527 per month. 

Choosing the Right Path: 

The best approach depends on your individual goals and timelines. Remember, the key is to start now and capitalize on the compound effect of rental income. By year four or five, you'll be effectively acquiring properties for free through reinvestment! 

Next week? More detail on both of these approaches and other tools you can use to grow your income.