Best advice I can give you is to seek good advice and a great place to start is to visit the various estate agents. You will find practically every estate agency in Liverpool on the Allerton Road - VTJ, Collertons, B&B, Sutton Kersh etc. There's a cluster of about 10 of them within 200 metres of one another. They'll give you a good idea what's renting and what's not, what's appreciating and what's not. I have property in some of the better areas of the city - Aigburth/Sefton Park/Allerton Road. I have friends who took a different approach and bought in rougher areas of the city...they are getting better yields and over the last three years have achieved higher capital appreciation (and I am basing this on property sold...not just estimates). The one down side is the properites these friends have require a bit more management......oh and they're all in Kensington. Good luck...it's a great city.