Hi guys,
Just thought I would write a post on a interesting purchase I have recently made. Its a 3 bed house in Coonamble. I submitted an offer of $20,000 for the property, I was more mucking around than thinking I could actually buy it at that price. After a bit of negotiating I managed to seal the deal for $22,000. I checked some comparables currently on the market for sale and there are a few properties under contract around the $80,000 range. Most of them are in average condition. I also did an RP Data CMA on the property and it came up between $90,000 - $110,000. I wanted to see in what condition the property was so I set out on a 8 hour drive to have a look and found out that it is actually a 4 bedder. Buy 3 get 1 free hahaha. Its a Nathan Birch special as its in pretty bad condition and needs renovating but offers great equity and yield. Reno will take 2 weeks to complete and cost no more than $15,000. Not much availabe for rent in the area and few local agents indicated that should get between $160 - $200 per week rent. After all expenses the net yield is around 16%.
Regards,
Engelo
