First time buy to let

[Bunnybunny1]

I have just found out that I have inherited £100K.

DH and I renting a lovely house in the countryside for £700 per month and I’m thinking of buying a buy to let flat nearby which would probably (after paying for upkeep and ground rent) bring in £400 per month.
I can’t use the £100k to get a good mortgage because both my husband and I (although we have no debts) have appalling credit ratings.
I’d rather buy outright but have a few questions:
Would I be taxed quite heavily on this because I have a job that pays £37,500 gross a year already?
Would it be better to move into something that I buy and enjoy the lack of monthly outgoings whilst saving for a house?- the thing about this is it would be moving away from a beautiful community, large house and plenty of outdoor space to a tiny flat. My daughter would hate the upheaval.
Is there anything else I could invest in that isn’t property?

Thank you.
I never thought I’d be in a position to buy a property so I’m a complete pre-schooler with all things money.

Have you thought about buying a BTL property outright but in a cheaper area of the country? 100k would buy a 3 bed family home in some areas and could offer decent rental returns. An agent could manage it so it doesn’t necessarily have to be close to you.

Thank you. Yes I looked in Cumbria and was blown away by how cheap the houses were. I think I’ll do this. Thank you.

How much do you and your husband earn and how much would a house for you to live in cost?

And put simply income is taxed as normal once you’ve taken off expenses (although there are some complications around deducti g the interest offf a buy to let mortgage because of recent changes)

I ask because you’d be surprised how often a good broker can get a mortgage for people with bad credit rating

I'd double check the rules on BTL because I don't think it's as easy as it used to be.

Would it be a better idea to put some into your pension?

To be honest I would speak to a financial advisor, other investments can bring in just as much (or more) of a return with less stress.
You would be paying 40% tax on all profits unless you start a limited company to dodge some of the tax.

Can't go wrong investing in property that's for sure. Another thing I have diversified myself into are cryptocurrencies.