Advice on setting up properties
Hi All, my first post here so sorry if I’m not succinct. I’m in the middle of purchasing my first house but eventually would like to convert this to a BTL and my long term goal is to have multiple properties. My question is the best way to set this up to pay the least amount of tax (if I’m being frank).
Background: 27M I work full time earning around £43k a year. Buying my property for £227.5k with £87.5k mortgage.
My current plan is: I’ve been fortunate from my family to have a large deposit, my plan was to live in House 1 till I pay off the mortgage and then rent it out.
To purchase house 2 I would remortgage the deposit amount from house 1 and then have both on BTL mortgages.
I would then keep using house 1 in increments of 50k to be the deposit for house 3 and 4.
The end goal is to have 4 properties all on rent. All houses would be in the range of 200-230k and rental income would be around £1300 per month on average.
My question is, at what point would it be beneficial for me to start a business and have these properties under a company. My parents are coming up to retirement (without a good pension) so was thinking I could pay them £12k a year each for managing and cleaning the properties.
Unsure on what other things I can do or would need to consider? Appreciate any advice and thanks in advance!
Edit - I’m in England