Interesting watching, the situation definitely seemed a bit tense. Saying that it was interesting hearing about her portfolio and knowing nothing it seems ok at the moment. You would have to assume a minimum gross yield of 5% in all those areas so 300k a year. Interest repayments at 5% is about 200k. Say 50k a year in costs. Leaves a 50k buffer, not huge by any means at 3 months worth of interest costs. Though it does get interesting if rates start to rise and get above about 7%.
One advantage is at around 20 properties in different areas you are diversified. You would have to be unlucky to have multiple empty at the same time. Better than holding 2 x 3 million properties in that sense.
Realistically if she had 20 properties the cost would be more like 100k so no buffer. I havnt even watched the segment but from what I've read here it sound like her yields might be a lot higher than 5% (people didn't like the areas)
People talk about the regional markets crashing, I can understand what your saying with interest rates but realistically if a property is under 200k and its in a location where people want to live (yes some people do like the country) then how can it go down much further?
You can't build a house for much less than 150k. Anyone who has a job can pay off a 200k mortgage, especially if the other option is renting for 300 a week
But seriously 10k for a property listing. You could make $1 million bucks in an hour if you get a cult following !
Luckily for him there's enough people out their who are unable to think for themselves