by Samuel Henshaw

Created on: January 12, 2010   Last Updated: January 13, 2010

Anyone can become a property investor in this day and age, but it is still vital that before you go and invest in property that you first equip yourself with the tools and the strategies to make buy to let investment a worthwhile profitable asset.

One mistake many accidental landlords made during 2009 was believing that buying a property and finding a tenant was enough to make consistent cash backs month on month. Unfortunately property investment isn’t that simple…

To make real, sizable positive cash flows of £500+ a month, you need to have a firm grasp of how the property market works, what it entails and what insights you need to make it happen.

Below we will explain exactly how you can acquire this knowledge and end 2010 with a profitable property portfolio.

What Is Buy To Let Investment?

There are many misconceptions about the property market, the first being the type of properties you can invest in. Residential, commercial, land, holiday lettings, development… each of these property routes can each provide you with a decent monthly cash flow if you invest.

The second and biggest misconception is how you invest in these properties.

In the past property investment was considered to consist of solely of the buying, renovating and selling of property which during the property boom of 2007 proved to be highly profitable. Yet the easiest and surest way to make money from property – no matter the economic climate is buy to let.

In its simplest terms, buy to let investment involves: ‘buying property with the intention of letting it out to a tenant.’ Simple, straight forward and if done right will incur limited renovation costs.

Creating A Property Portfolio

The key to becoming a successful property investor is to ensure that you keep to following key points. Follow these and you can be sure of a profitable year:

* Research – using property portals, letting agents and newspapers take the time to research where are the best rental yields, tenancy  demands and buy to let mortgage deals before constructing a list of 100 properties.

* Does The Property Produce A Positive Cash Flow – the phrase ‘positive cash flow’ is determined by the size of the profits your make  after your properties mortgage payments have been deducted.

 To calculate this profit, simply enter your mortgage term, loan amount and interest rate into a mortgage repayment calculator, and taking  its calculated interest

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