The following example outlines the reasoning behind investing monies across several properties as opposed to a single property investment.
Investing £100,000 cash in one property for a period of 12 months .
The net yield of 4% achieved by renting x £100,000 = £4,000
Profit = £4,000
Capital growth of 5% of £100,000 = £5,000
Investing £100,000 across multiple properties for a period of 12 months £15,000 deposit across 6 properties with a value of £100,000 each The yield of 4% achieved by renting X £600,000 (6X£100,000) = £24,000 Profit = £24,000
Capital growth of 5% of £600,000 = £30,000