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Rixter, thanks for your suggestions :) They opened my eyes!!!:)

Rick, what you said gave me A LOT of food for thought. I figured if the outlay for a house is 40k (inclusive of 5% deposit, stamp duty and other costs, close to 20k reno) with a PP of $215k (market value of $250k after reno) and the rent after reno is $350 pw, it has a big opportunity cost as...

Yeh exactly. I won't say No to any opportunities - be that development.

Rick, thanks for the input. As for developing. I don't know if I will develop but I'm keeping my options open :)

Really? A lot of the ex DOH can be in a decent condition needing around 10-15k works. At least that's how the photos come across. Also, the ones I'm talking about were on auction to public and did not have an OO clause. Thanks Rick it does. Though the other side of the coin is....buy land...

If I pay $220k for the property needing around $15k-$18k overhaul (plus external paint down the track) with a rent of around $340 pw I will have a monthly outlay of $108. Also the street has had sales for $275k plus. So if the re-val comes down to $260k, I'd be able to get 19k (outlay of $38k)...

Thanks for the responses. Virgo, I'm not sure how the yields in parra surrounds sit with me :p seem low...I like mount Druitt. I have a villa there and it's just such a good purchase it's hard to find those. I bought it (through a BA) at an old unit price less than 2 years ago. Travelbug, what...

No I'm talking 2 years down the track. Prolly not pragmatic to speculate what the rents will be in 2 years time. But working back to what will make the cashflow neutral for a 3BR 10 year old unit in St Marys south.

Would you though consider a 3 BR unit in South St Marys instead with no equity BUT yield close to 7% (purchased for $240k, rent of $340 pw) with outlook to it being positively geared as soon as rent hits the $380 pw mark (at current IR)? Knowing that South St Marys is a popular area.

Agree Dave :). Perhaps I do either need to come up to market value for houses...I'd rather have reasonable CG and I don't mind some negative cashflow e.g. $40 pw. I have formed good rapport with some of the agents in the area...Hopefully something will come up soon. I even put an offer of $225k...

I've now been looking for my second IP for quite sometime now. Perhaps I have had some stringent criteria. Me and my sis always buy in doubles so whenever we are in the market we are out there to get one each. My sis bought her second property in December and I've been on the hunt. I've pretty...