Remortgage to the hilt, borrow to the max

i know some savy investors who constantly buy properties undervalue and through clever financing can always pocket £5-£10k via a remortgage to release equity , but have little or no cashflow from day one. their strategy is to keep buying at least one a week. cashflow is from remortgaging to release equity and that would mean a profit of between £300k-£500k per annum. i’m not sure how scalable this strategy is. as it involves constantly buying properties and using a remortgage to release equityto have cashflow. they would be really open for any fluctuations in interest rates even if they do fix the rates for a few years. but then again they would be half a million pounds better off each year!!

I suppose if that 500k was then put to good use in other residual income investments or a major development then it would be a good thing to do. my guess is that most of it will be spend on living the high life, women, crack and fast cars!!

me, i’m quite happy to buy 2 properties every month and just borrow enough to cover the purchase prices but with good cashflow. this will leave me in a better position for cashflow even if i stopped buying houses. i would only remortgage to release equity on maybe 1 out of every 5 properties and that would only be when there current fixed rate term finishes.

i have heard that the inland revenue will be cracking down on landlords that do not pay enough tax and my bet is they will be scrutinising these investors who remortgage to release equity to spend. i actually don’t like to do this as i was brought up to think loans and borrowing money is bad and to always repay a debt. i have since learnt the benefits of mortgages and good debt, but i like to keep it sensible and not over borrow.