Cash Flow+ Properties
- Thread starter holtk5
- Start date
Was written in 2003. Why is it now alot more difficult to find them? (Excuse my ignorance!)
It's a good book, but about 10 years out of date I'm afraid.
To buy a cfp property these days, you need to create it through a reno, an 'add value' or subdivision, a wrap, buy very below market etc.
You can still buy a cfp AFTER TAX property however.
This is where the combined rent, tax deductions from the holding costs, and the 'on-paper' deductions from the depreciation end up with the cashflow becoming positive after the tax return.
Read Margaret Lomas's books to find out exactly how this is achieved. They are great.
To buy a cfp property these days, you need to create it through a reno, an 'add value' or subdivision, a wrap, buy very below market etc.
You can still buy a cfp AFTER TAX property however.
This is where the combined rent, tax deductions from the holding costs, and the 'on-paper' deductions from the depreciation end up with the cashflow becoming positive after the tax return.
Read Margaret Lomas's books to find out exactly how this is achieved. They are great.
Thanks for that L.AAussie i will get her book!
A lot of this book was also to do with buying in rural/mining towns that have high rental yields, and therefore positive cashflow which can give you extra income for the next.
As the others mentioned, this is already harder to do now, but also you run the risk of little to no capital gains, and the possibility of finding it hard to get tennants if the mine/industry closes down in that town.
As the others mentioned, this is already harder to do now, but also you run the risk of little to no capital gains, and the possibility of finding it hard to get tennants if the mine/industry closes down in that town.
They are still out there, but they are now very hard to find & sometimes in areas you may not wish to invest in. I recently sold one renting at $145pw for $65K. Three bed house in good condition in a regional area. When looking for properties like this the internet is your best friend, but ALWAYS do your due dilligence.
The reason they are hard to find now is that we had huge increases in the purchase prices of properties & the rents haven't yet caught up. They may do in time, or they may not, who knows. Steve McKnight bought many before the property boom, in regional areas, sometimes getting as much as 20% yeild. 10%+ yeilds were commonplace back then & very easy to find.
Cashflow Positive Properties
Hiya haltk5,
Was wondering if you were aware of the website cashflowcapital.com
The agent there, Spiro concentrates on finding cashflow positive properties for investors. The ROI's are huge and the asking prices seem reasonable. He doenst give out addresses as you need to become a gold member in order to receive these details and of course, that is at a cost of $500/yr (which is refundable upon the purchase of a property with them).
If you do become a gold member, you receive all the latest 4 sales before they hit his website or the real estate agents (the real bargains in other words)! The ones on the website are the ones that have been for sale for longer than 4 wks and some are not so desirable. There are some good bargains and new places too in bigger cities - not just mining towns in the the sticks!
You tell him what you are looking for (ROI, location, house, apartment etc) and he will find it for you. Providing you are a gold member of course! He will do all the leg work for you when you decide on a place - gather regional stats, local area info, projected cg rates and even negoiate on your behalf for a 2% fee of purchase price at the end.
I assumed the places listed with good ROI, would be run down and would therefore, slowly reduce over the years because of this. After just talking to him, I know that he has brand new properties on his books too but these are the ones that usually dont make it to the website as they are snapped up by members first!
They also guarantee the ROI and rentals for set time periods too. After that, they would MIGHT reduce quite significantly?? Not sure how it works.
Worth looking into. Dont know if it is for me though. Like to know I have done the due diligence myself and can trust what I have researched!
Good luck!
Peta
Hiya haltk5,
Was wondering if you were aware of the website cashflowcapital.com
The agent there, Spiro concentrates on finding cashflow positive properties for investors. The ROI's are huge and the asking prices seem reasonable. He doenst give out addresses as you need to become a gold member in order to receive these details and of course, that is at a cost of $500/yr (which is refundable upon the purchase of a property with them).
If you do become a gold member, you receive all the latest 4 sales before they hit his website or the real estate agents (the real bargains in other words)! The ones on the website are the ones that have been for sale for longer than 4 wks and some are not so desirable. There are some good bargains and new places too in bigger cities - not just mining towns in the the sticks!
You tell him what you are looking for (ROI, location, house, apartment etc) and he will find it for you. Providing you are a gold member of course! He will do all the leg work for you when you decide on a place - gather regional stats, local area info, projected cg rates and even negoiate on your behalf for a 2% fee of purchase price at the end.
I assumed the places listed with good ROI, would be run down and would therefore, slowly reduce over the years because of this. After just talking to him, I know that he has brand new properties on his books too but these are the ones that usually dont make it to the website as they are snapped up by members first!
They also guarantee the ROI and rentals for set time periods too. After that, they would MIGHT reduce quite significantly?? Not sure how it works.
Worth looking into. Dont know if it is for me though. Like to know I have done the due diligence myself and can trust what I have researched!
Good luck!
Peta
Do you buy through Spiro Dazzling?
Too good to be true really...
I just read this book and was really excited about CF+ investing, only to come online to find they are not as common as they were when the book was written.
I dont think negative gearing is for me, I dont want to have to work to fund the costs of my houses each month, that defeats the purpose of using property as a road to financial freedom for me. And if cashflow positive properties barely exist now, not sure where that leaves me.
I dont think negative gearing is for me, I dont want to have to work to fund the costs of my houses each month, that defeats the purpose of using property as a road to financial freedom for me. And if cashflow positive properties barely exist now, not sure where that leaves me.
You might be waiting for a while if you want rent to pay your mortgage... I would suggest buying a run down prop within metro area of a large city (Werribee, Melton, Frank Nth) and then do minor renovation whilst you are staying there to improve the prop.
The rental potential can thus be improved as well as adding some CG in the prop during the process.
Harris
