Our steps to Due Diligence.

When we start sourcing we focus on analysing and researching various factors to build solid overall view on invest-ability.

Comparable's. We always try to go with 'sold comparables' as these are more reliable especially if the exit is to flip or sell on anytime soon. Rightmove is one of reliable platform and let you search sold properties on any given street. We looking for comparable properties that are sold within 2 years of today's date to be relied upon as a 'good enough comparable'. Anything older than 2 years is likely too out of date in terms of the market. Comparables should be of similar size, condition, and close by. On the market comparables are not reliable purely because what a property is advertised for and what it sell's for are often very different figures. More specific and very useful we use for sourcing and compare properties is Property Data platform.

Location. What does the local area offer? How close is the property to public transport links and local motorway network etc, schools, hospitals, distance to town centre and local bus stops. We following, local amenities, nightlife, attractions, sporting venues, concert venues.

Regenaration. We always try find out if any money is being spent in the area, if there are plans for new developments, especially those that will drive the local economy, bring jobs etc. Any investment on a huge scale will always add value to residential property in the long term. Refurb or Build Cost. If the property requires any refurb or build costs, you will need to make an assumption as to how much this will cost. We view property with a builder and get a quote. We always obtain couple quotes and have the work specification. You could hazard a guess before confirming costs at a later stage if you are only initially assessing a property and you are confident with your figures.

Tenant Supply & Demand. We check supply and demand a number of ways, speak with local agents and ask how long similar properties are taking to let. If it is a HMO we carry out a search using the spare-room website, however it's indicator only and we always speak to an agent in this instance and ask them how quickly they are letting rooms.

Rental Prices. If the property is to be tenanted then you will want to know the going rate for a property like yours. Again, it's quite simple, hop on to the Rightmove or Zoopla website and search for similar properties in the area.

Capital Growth. This is where we login to the Property Data website and can see the historic growth in any postcode area, but you can also search for projected growth in a region too. This particular information is provided by the likes of Knight Knox and Savills.

Exit Strategy. When we are sourcing we usually know what is the investors exit strategy. We work out what would make the best use of the property, biggest returns, biggest cash-flow versus safest and most likely outcome given the area and tenant demand. We focus on various exits strategies.

Legislation and Restrictions. There could be restrictions to some properties, such as article 4. This is the local authorities way of limiting the spread of HMO's in an area of the town or city. If article 4 is in place then obtaining a HMO license will be much more difficult, but alternatively if you find an active HMO in an article 4 area then this could be very saleable . Other restrictions could be the mortgage-ability of a property. If a property is built using non-standard building techniques then mortgaging a purchase may prove troublesome and or impossible. If a property is 'leasehold' we check how long remains on the lease as if a lease runs below 70 years it becomes more difficult to mortgage. Options in this scenario are extending the lease with the freeholder or buying the freehold.