To reduce the risk in property attempt to have minimal cash tied up in it. Make sure that the property is purchased well below market value. That way if interest rates rise or there are unexpected costs then you have enough equity to cover costs. To minimise risk further have a two exit strategy for each property purchased. Make sure that your property is located in an area where you can sell or rent quickly at any given time. This gives you the flexibility if the market or the economic conditions change.
Where in the UK should I invest?Ideally, look for areas with potential. Good transport links, regeneration areas, good supply of work from major industry etc. Be careful of suggested Hotspots from property investment firms. By the time its become public knowledge that an area is a hotspot then usually its too late! Make sure you do your own research to confirm an area as an investing hotspot.