Eager aspiring property investor needing advise

[TysonA]

I am looking to get onto the property ladder very soon - I am in the process of putting together a business plan of how I can build a portfolio of properties. I am (amongst the thousands of people!) looking to purchase property below market price at auction.

I want to start off buying a 2 bedroom house or flat in South East London or East London that needs some work done to modernise etc. I want to live at the house while the work is being done and want to rent out one of the rooms once all the work is completed. After a year, my plan is to either rent out the property to pay off the mortgage, or sell it on.

I am aware of the issues when it comes to making sure I keep to a tight budget and to make sure I do my research into how much the work will cost. I am planning to put a detailed budget together of all costs (legal, fees etc).

I am also aware of the issues in the housing market at the moment. However, from what I have read, London reacts very differently to the rest of the country when it comes to property prices. The demand for housing will always be there and there is not an infinite anount of space. I see this purely as a long term investment.

Is there anything else that I am missing?? What major things do I need to keep an eye out for??

I also am keen to develop some contacts who work on similar projects - so if anyone is out there who wants to impart some wisdom then pls feel free to contact me!!

[TysonA]

I am also considering signing up to the EIG property auction website - is anyone here a member? Is it worth it? Any testimonials??