Cashflow Mgt.

Dear All,

I have been reading regulary the post and following some of the advice and experiences shared by experienced investors on this Forum.

Over the past few months me and my wife have also got on the bandwagon and secured couple of IP's.

Looking ahead we wish to accelerate and are likely to face the inevitable cashflow issues; Questions are

- How much spare cash do you keep aside for each investment property?
- How much should you or can you borrow? If you are comfortable in taking 'good debt'
- Should we secure a property even at 80% funding if required?
- How critical it is to secure one property on individual name to avoid shared liability?

Thanks for shareing your knowledge.
 
Dear All,

I have been reading regulary the post and following some of the advice and experiences shared by experienced investors on this Forum.

Over the past few months me and my wife have also got on the bandwagon and secured couple of IP's.

Looking ahead we wish to accelerate and are likely to face the inevitable cashflow issues; Questions are

- How much spare cash do you keep aside for each investment property?
- How much should you or can you borrow? If you are comfortable in taking 'good debt'
- Should we secure a property even at 80% funding if required?
- How critical it is to secure one property on individual name to avoid shared liability?

Thanks for sharing your knowledge.

We don't have any real formula for how much cash to keep on hand for each property. We simply keep plowing extra funds back into the LOC's to hedge against hardship, improve the equity and serviceability etc.

When an opportunity comes along this all helps you to be ready to act.

We never borrow as much as we actually can - another hedge against cashflow problems and/or hardship.

We've only ever bought in joint names. This is specifically to minimise our personal income taxes. No HDT's and all that.

Have good insurances and pub/liability is a good hedge against litigation.

Of course, don't listen to me; get professional advice on how to structure your purchases. :rolleyes:
 
Heh. I'm officially an "accidental" landlord. So:

Buffer: whatever ends up sitting around in my CBA account from them paying rent. I have insurance. If its more than $100 (the excess) it'd better be covered.
Didn't borrow anything for this one, its an ex-ppor I couldn't sell in what I considered a reasonable timeframe. Its currently at 29% LVR so the yield vs debt is ridiculously high - I have to pay tax on the rent.
I'd rather have it in joint names to spread the tax around but its in my name, its P&I, and I think its just going to be too expensive to change that.
Once I've managed to secure a loan for the next house the rent gets directed into the loan and it should be paid off in 3 years, which goes against what everyone says you should do.

Basically going about this in entirely the wrong way ...
 
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