Updating post from Reddit.
Thanks (if you can say that about a dead parent?! to a recent inheritance I have about £150k in cash. I’ll be buying a B2L costing about £240K. Does anyone have any advice about how much deposit I should put into this? Max out and have a small mortgage? Split and buy two B2L? Rent should be around £1100 pcm.
What this guy said. Work out your yields and understand if it's just better to put the money into a fund and reap more for doing less.
There is some benefit to maximising borrowing on the BTL. You can claim some tax credit for your interest cost (or the full interest cost in a LTD company), so it's more beneficial to find something else to do with the money rather than equity in the BTL.
If you have no other debt though and don't want to risk investing the money elsewhere, building up equity with a large deposit isn't the worst thing you can do.
BTL is definitely better with scale so I believe cash is king. But make sure your numbers stack up on each investment. And figure out if you prioritize income or capital growth.
I would recommend a one stop shop if you need company set up, accounts (Making Tax Digital is coming), compliance and tenant management. Would recommend a professional for first time landlord as a lot to learn and lot can go wrong. I use LandlordLab.co.uk
Buy 2 properties at £240k each. Putting in approximately £80k into each to cover stamp duty, legal etc. Buy in a Ltdco. Interest only mortgage via a good broker. Make sure the expected rental income is 125% of the monthly mortgage before you proceed with any purchase. That’s what I would do anyway.