Buy for $85k, rent for $230 a week. Just do it???

[Thann]

Congrats, I love hearing stories like this.

 

[lizzie]

Sensational ... can I buy the other one and have you manage it for me ?

 

[charlieandkath]

Thanks everyone for your support.

Yes Lizzie you can buy it but I won't manage it.

 

[Dazz]

Therefore outcome 114k spend for 315 per week rent.

Not too bad eh??

Depends what the outgoings are....

Your 14.3% gross yield looks pretty good on first inspection....but I suspect some large rate bills and maintenance and land tax bills might knock the shine off a tad.

The smaller deals have that characteristic. The rates tend to eat a larger percentage of the rents up.

If you get above 8% nett yield you'll be doing well, which should pay the mortgage, or the opportunity cost of the cash, either or.

Good first step though...carry on McDuff.

 

[redwing]

We did it and I can report on the outcome. The numbers ended up a bit different.

Bought for 90k. Spent 20k doing up front exterior. Total spend 114k with SD, legal etc.

Shop 1 renting for 130 per week with GST
Shop 2 about to rent for 187 per week with GST
Shed out back renting for 30 per week with GST

All up renting for 347 with GST per week or around 315 per week without the GSTring.

Therefore outcome 114k spend for 315 per week rent.

Not too bad eh?? We were wanting to buy in Gladstone early last year but did not make it. Not a bad compromise above though.

Happy New Year everyone and thanks for everyones help above. I appreciated your detail and help.

There is another one in town for sale for $115k with 370 per week rent with another 18 months to go on lease but it is not in as good a position as above. What do you reckon? Give it a nudge aswell.

Great work C&K and thanks for the update

It was buy for $85k rent for $230 per week originally, what changed with the initial purchase (pre-reno) price?

Any lessons learnt with the due dilligence on the questions above from some of the Forum members?

 

[Bird Dog]

Congrat's on making to jump

Well done following though on your decision to get into CIP C&K.. And well done on filling the second space too..

Look forward to hearing of your next endevour..

cheers

B.D

 

[BMan]

i would also like to know what changed with the initial purchase price?
if it was going for 85k why did you pay 90k you do know your meant to bargain down ?

 

[charlieandkath]

i would also like to know what changed with the initial purchase price?
if it was going for 85k why did you pay 90k you do know your meant to bargain down ?

Yeah sorry everyone - I thought I was in the running at 85k but in the end I had to pay 90k. It was listed at 110k to start with.