How to Buy More Than One Investment Property

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If you’re a beginner investor, your ultimate goal may be to own a portfolio of multiple properties – and this is a great goal to have.

Just think of how much rental income and capital growth returns you could generate with your portfolio of lucrative investments! Given just one investment property can generate considerable returns, a whole portfolio is certainly able to bring you thousands in income.

However, building a portfolio from scratch is more complicated than it seems, particularly if your investment budget is on the lower end of the scale. If you are asking yourself how many investment properties can I own without breaking the bank, the answer will often depend on how you spend your money.

If you’re looking to buy your first property but want to know how to buy more investment properties quickly and avoid waiting many years before building your portfolio, this blog post will help you.

We’ll offer tips on buying more investment properties without spending way over your budget and help you create a property investment strategy that works.

If you are wondering how many rental properties can you own, the answer is as many as you can afford! However, the cost of this is often out of many investors’ budgets, so the tips in this guide will help offer you ways to invest in multiple properties at once while keeping costs low.

So what are you waiting for? Let’s get stuck in.

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Why Buy More Than One Property?

So why would you want to buy more property for investment in the first place?

Owning a range of properties and building a property portfolio is a popular property investment strategy for those serious about making money through a long-term investment.

With house prices increasing to over £290,000 on average, and rental prices rising by over 9% in the past 12 months, now is a great time to consider investing in property. Expanding your portfolio is a great way of capitalising off the thriving property market.

There are many benefits to owning more investments, such as:

  • Increased cash flow from multiple investments bringing in rental yield.
  • Less risk, as if one was to suffer due to real estate market changes, your other investments would still bring in returns.
  • You can achieve financial freedom more quickly with a portfolio.
  • You can treat your portfolio more like a business you can live off, rather than having to work a job as well.

I Only Have a Budget For One Property – How Do I Buy More Rental Properties?

The first step is to think about your investment budget and consider how many properties you can actually afford at once.

You may have found a particular apartment or house that ticks all the boxes, with the only downside being that the price of the investment property leaves you with no cash left over.

You may be considering using your entire budget to buy just one property for now and then using rental income from the investment to fund your second purchase.

While this is certainly an option, it’s not a good investment strategy if you want to build a property portfolio quickly, as it could take years before you’ve saved enough money to fund your second investment.

If you don’t want to be left having to buy one rental property per year and instead are looking to kickstart your portfolio, consider the following options.

Hunt For Below-Market Value Rates

Forgetting about that one pricey property you’ve found and scanning the market for cheaper, below-market-value properties is a simple way to buy more than one property.

Below-market value means that the property is being listed at a lower price than the average house price in the area, and cheaper properties can be found compared to other similar nearby opportunities.

Many property investment companies and developers offer investments at below-market value prices if they’re off-plan. Off-plan means that the property development is still being built, but is available for investment while planning or construction is ongoing.

Developments like Merchant’s Wharf in Manchester are offered at 55% below market value prices, and apartments in developments like Liverpool’s Central Park are priced from just £164,950.

If you had a budget of £350,000, you could purchase two units outright in this Liverpool development and still be left with around £30k to put towards another investment.

If you are wondering how many rental properties you can own on a tighter budget, off-plan properties might be the way forward for you.

Pros of This Strategy

  • Buying an investment property to rent with this strategy is cost-effective. It allows you to spread your budget across multiple investments.
  • The properties you buy will be brand-new, which comes with many benefits like higher rental demand.
  • By investing in apartments sold by investment companies, you can make your investment process easier and get advice along the way.
  • Off-plan property investments are often in popular areas or centres of regeneration, meaning you can draw tenants such as young professionals or students easier.

Cons of This Strategy

  • Since these investments are off-plan, you will need to wait for the property to complete, which could take several years. If there are complications, then this wait could be even longer.
  • Buying off-plan requires more due diligence and research to ensure the developer behind the project has a good reputation within the property market.

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Start Your Portfolio With Fixer-Upper Properties

Instead of investing in off-plan or new build homes, many property investors will purchase houses or apartments in desperate need of renovation.

Otherwise known as a ‘fixer-upper’, these property types are popular with those who like to buy at a lower cost, spend money renovating it, and then sell it for an increased price.

Because this method allows you to find more affordable deals, it could be a good option if you’re wondering how to buy more than one investment property with one budget.

Fixer-upper homes are often listed by estate agents or sold at auctions. Guide prices can be significantly lower than the typical average house prices on the market.

Any money you make from capital gains can be used to buy additional investment properties and grow your portfolio.

However, with this strategy, you need to allocate funds towards the cost of renovation, which requires time, planning, and expert knowledge. 

Pros of This Strategy

  • Flipping houses can be an excellent way to make significant returns in a lump sum for further investments.
  • Buying houses or flats in need of renovation means you’re able to pay less than you would normally, allowing you to spread your budget across multiple properties.
  • By renovating existing properties, you can draw in potential buyers thanks to the modernisation of the property.

Cons of This Strategy

  • Expert knowledge and experience are often needed to ensure everything runs smoothly. With this knowledge, you’ll know the most cost-effective ways to renovate each property.
  • It may take some time before the renovation is complete and the properties can be sold, leaving you without any returns for an extended period.
  • There could be complications with the renovation, which may add unexpected costs to your investment, potentially leaving you out of pocket.

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Get a Discount on a Bulk Purchase

One of the best ways to buy more than one property at once is to bulk purchase multiple units within one development.

Some property developers and investment companies will offer you the option to purchase several units in one property development at a discounted rate.

This could mean that for the price of just one regular property, you could own more than one apartment at once and pay the same amount or less.

Again, this is a popular strategy with off-plan investing, as buying off-plan is an all-around great way to find cheaper properties.

For those asking themselves ‘how many investment properties can I own at once’, this is a strong option to quickly build up a portfolio.

Pros of This Strategy

  • You can own multiple units in a new build development for a discounted bulk purchase price.
  • You get the first pick of the best units within off-plan property development.
  • The buying process is simplified as you don’t need to spend time researching the different properties and their different areas.

Cons of This Strategy

  • You will own units in the same development rather than varying your buy-to-let property investments between student or residential property. This means your portfolio is not as diverse.
  • You can face the same issues as buying a single off-plan property, such as the potentially long time it takes to develop the property.

Using a Buy-to-Let Mortgage or Payment Plan to Secure More Property

Say you have a budget of £200,000 and you’re hoping to buy more than one investment property at once. You’re inevitably going to run into difficulty finding properties cheap enough to fund multiple investments with this budget.

However, if you used buy-to-let mortgages or payment plans to fund your investments, you could spread your budget across multiple properties.

With a buy-to-let mortgage, you need to put down at least 25% of the property price as a deposit (sometimes more depending on the mortgage provider you use).

This means that with a £200,000 budget, you could buy five properties with a value of £120,000 by spending just £30k on a deposit for each. You would then be left with £50k of your budget and could use part of your rental income to fund mortgage payments.

With the option of a payment plan offered by some property investment companies, you can split your payments into smaller, more manageable chunks. Payment plans give more flexibility for those wondering how many properties can you own on a tighter budget.

For example, some investments allow you to pay 50% upon reservation and 50% when the property is complete (for an off-plan purchase). Others may have a plan that allows you to pay 25% upon reservation, 25% further along the process and the final 50% upon completion of the project.

This could be a good option for you if you want to use your budget to secure a few properties and then pay the rest of the amount once you’ve had some time to save more money.

Pros of This Strategy

  • Buying an investment property to rent with the help of a payment plan or buy-to-let mortgage allows you to put the remaining amount of your budget towards more investments.
  • Depending on the amount of money you have available, you could build a sizeable property portfolio much more quickly.

Cons of This Strategy

  • Securing a buy-to-let mortgage may be more difficult for overseas buyers or those investing in certain off-plan properties.
  • Investing in property with a payment plan is more prevalent with off-plan purchases, so buying more property with this method would be unlikely if you want to buy completed homes.
  • Using this method will eat into your rental income and returns, as you will need to spend some of the money paying off your buy-to-let mortgage.

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Borrow Money to Buy More Properties

If all else fails, there’s the option of borrowing money from a friend or relative to fund your additional investments.

You may have enough to buy your first property, but your budget has run dry after that first investment property purchase.

If a family member or friend has enough money to cover the property prices of the other properties you have your eye on, you could consider temporarily lending the money from them and paying them back at a later date.

This option could work for some people but isn’t generally recommended. You don’t want to be relying on other people when you invest in property, as property investing is a serious business.

Things could get messy if you’re unable to pay back what you borrowed quickly enough, and the vast majority of successful investors would advise against this option. If you are looking to own multiple investment properties, this is likely not the best solution for you.

Pros of This Strategy

  • You could buy properties more quickly with the help of a generous friend or family member who is willing to loan you the money temporarily.
  • You could work with your lender rather than just borrowing the money, and combine your resources to invest in property with a partner.

Cons of This Strategy

  • If you’re unable to repay the loan, you could damage your relationship with the lender.
  • This option leaves you with less financial freedom and stability, as you’re relying on other people’s financial circumstances to fund your own venture.

Investing in Real Estate Investment Trusts

Buying a flat or house isn’t the only way you can get involved with the property market.

Otherwise known as a REIT, a real estate investment trust is a company that finances, owns, or operates real estate.

When you invest in a REIT, you’re investing in a share of the company’s properties, which makes this a similar strategy to investing in the stock market.

Because you’re not actually buying a property yourself, this could be considered a good way of investing if you are wondering how to buy more than one investment property at a time when you have just started investing and don’t have a lot of funds available.

Since they work similarly to stocks and shares investments, REITs are a ‘liquid’ investment and not a ‘physical’ investment like property. This makes them more high risk.

Pros of This Strategy

  • You can invest in rental properties without actually owning them.
  • Your returns can increase with capital growth depending on market performance at the time.
  • Due to the liquidity of REITs, you can buy or sell your investments much more quickly than when investing in whole properties.

Cons of This Strategy

  • You won’t physically own any rental properties, which means you won’t collect rent yourself and benefit from the full returns from your investment.
  • Property investors cannot perform research on their investments, which makes it difficult to determine the value of your REITs.
  • As with other stock investments, value can fluctuate, and you could be left with less than you initially invested.
  • Due to the liquidity of REITs, they are more unstable than property and subject to market changes at a faster rate.

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Why Buy More Investment Properties With RWinvest?

Considering buying your first rental property with RWinvest? If you want to achieve financial freedom and make passive income through property investment, we can help you find the right property for you. With over 17 years of experience in the UK property market, our award-winning services can help you find the perfect investment property. With industry-leading teams guiding you through every step of the way, you can be assured that RWInvest will help you on your property investment journey.

Our off-plan investment opportunities are offered at below-market-value rates, making them highly competitive in the UK real estate market.

This helps make our properties more affordable, making it easier to buy more than one investment property at once compared to purchasing fully-built properties.

With our payment plans, you can split the cost of your investment into more manageable chunks, allowing you to put down what you can afford at the time to secure the property.

This makes it easier to buy more than one investment property at a time, which is perfect for those wondering how many rental properties can you own on a limited budget.

We offer the chance to invest in multiple units within one development, which is ideal for any property investor seeking a bulk discount to help them buy multiple rental homes.

This way you can buy more than one investment property at once to rapidly expand your investment portfolio.

Our investment opportunities are the very best on the market. Each project is developed by industry-leading property developers and located in areas with the best rental yields and capital growth potential.

We only work with the top developers in the UK on our property developments to ensure our clients can rest easy knowing they are in safe hands when investing.

Get in touch with us today via our live chat service or contact our offices in Liverpool, London, and Manchester.

We love to hear from new investors interested in investing in property, no matter their budget, goals, or criteria.

Kickstart your buy-to-let journey with RWinvest today and explore our fantastic range of rental properties in the UK.

For further property investment reading, check out the following helpful guides and articles:

What is an investment property?

Is my rental property a good investment?

How to buy an investment property with a partner

Are investment properties worth it?

John Brady

John Brady

John is a property writer here at RWinvest. With a close eye on property market news and updates, John writes detailed and informative articles on a range of topics that are helpful for anybody looking to invest in UK property.

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