How we bought 20 IP's in 5yrs

[cad]

Congratulations Brenda,
My husband & I have managed to accumulate 9 IPs in 9 yrs,we sold one after paying it off & have temporarily converted it to a term deposit.
We are currently building a house to sell for cash flow.
We are both in our early 30s and are also a single income family.
Our IPs income is just over 133k pa
Loans for IPs 1.2m, all with one bank 1/3 P&I 2/3 Int only
My husband works outside the home.
We don't own our own home we rent someone else's...strange isn't it?
We have made mistakes along the way, unfortunatly you live & learn.
That's where a mentor would be handy, to learn by their mistakes
I find our age is a barrier, age discrimination is alive & well!
We love property & want to accumulate as much as possible, like you.
"GO Girl!!!!!!"
Keep up the good work.
Cad

 

[silas]

Hi Cad,

Congratulations on your success. Maybe you could post your story for others to be inspired by.

Silas

 

[sctpc]

Yes it would be nice if you would give ALOT more detal Cad i agree with silas

 

[davids]

Its a fantastic story and one that is inspirational for all investors

 

[cad]

By the way there is only 8 IP’s.

So 8 IP’s in 9 yrs... but this year isn’t over yet & I intend to purchase another by years end.

OK here goes,
IP 1, 2 & 4 all new homes, these properties are in central Victoria a small country town, people mainly commute to Melbourne CBD for work so rental market is constant. (Home Town)

We lived & worked in the far NW of WA for quite a few years, so we bought in that area
IP 3 New home off the plan,
IP 5 old ex mining Co house,
IP 6& 7 Relocatable mine sit home that we did major renovation to
IP 8 An old house that we did a make over on

This location has a very volatile rental market, based on the mining industry with a boom, bust economy or high risk, high return, at the end of the day you have to know your market.

We bought in the bust of the cycle & every one thought we were crazy, but we where confident we could make it work for us & the proof is in the pudding.

IPPurch Cost... Rent... Value. Current Rent.

1 1995 $100k $165pw $165K SOLD
2 1997 $110k $185pw $200K $195pw
3 1998 $255k $300pw $325K $450pw
4 1999 $110k $210pw $190K $220pw
5 2000 $190k $280pw $225K $350pw
6 2001 $190k $450pw $235K $500pw
7 2001 $190k $400pw $235K $500pw
8 2001 $165k $300pw $185K $350pw


We are currently building a house in Perth to sell, in an attempt to generate cash flow.

I must say that the accumulating of property is the easy bit; the hard part is taking the first step, but if you buy right…..research, research, and research, It’s hard to go wrong & you’ll never look back. I only wish we had started earlier.

The difficult part for us was being able to arm ourselves with the right information,
you know… on Banks, Accountants, and Real Estate Agents, Tax, Legal Issues, even insurance companies, or the right structures to implement i.e. Trusts, Company?
It really is a mine field out there, that’s where the mistakes are made & the live & learn thing comes into play. I hate learning the hard way as it’s usually a costly exercise.

We bank NAB; & we have a Trust structure in place.
I keep very good records of all our financial transactions on MYOB accounting software.
I research the markets on a weekly basis to know the market so I can make an informed decision on our next purchase.
Any way I could just go on & on because it’s my passion.
Sorry… I hope this helps

Regards Cad.

 

[john doe]

Hi Cad,

Loved your story. Thanks very much for sharing it with us all on the forum.

I'm just wondering. You said you "research the markets on a weekly basis". Can you please tell me how you do this exactly? I mean, what sources do you turn to for info?

Thanks

John

 

[cad]

Hi John,

I have a friendly real estate agent that has a data supplier that provides them with all properties that are advertised for sale in the newspaper.
I have a particular area that I research & an amount that I am prepared to spend so the agent can enter this info & email every thing that fits that criteria, you can even say how many bedrooms, bath rooms you want or even if you want a development block etc..And you only receive information that fits your criteria. This certainly cuts down all those long hours searching through newspapers.
If you find something that interests you, it is possible here in WA to purchase VG information i.e.: view titles, name of owners & how much they paid for the particular property.
This information can be invaluable when negotiating.

Cheers Cad

 

[silas]

Thanks for taking the time to share your experiences.

Silas

 

[Brenda Irwin]

Very good cad

 

[Robyne]

Hi Brenda, and all you other successful IP capitalists. You are all very inspiring. I have 2 investment properies both bought within the last 2 years plus a PPOR. I am getting really good growth on all 3 properties at the moment but would like a better cash flow. I have researched pretty much all of NSW looking for cash flow positive area and specifically properties where I can expect to at least a modest growth rate, I'm talking around an average of at least 5% over the last 10 years. I can't find anything.

There does seem to be a lot of this sort of property in Queensland.

So my next purchase may be a long distance one and I was wondering, how much research do you do before you buy a place. Do you consider it neccessary to view the propery yourself? Do you use residex reports etc. Have you bought any of your properties "long distance".

Thanks for your help.

Robyne:

 

[Brenda Irwin]

Check out internet RE websites. If you find a particular area that looks promising then run up a phone bill and speak to the property managers in the area. They are a wealth of knowledge & you might find a good one that way.
The property investor mag has stats & rents as a guide for most areas in Qld.
I have 1/2 doz I have never seen but they bring good cashflow.

Cheers Brenda

 

[Robyne]

Thanks Brenda,

It's good of you to share your knowledge with everyone. I take it you get building and pest inspections before you buy? Do you get a quantity surveyer in before the purchase? Depreciables are one of the area I look for when I check out a property myself.

Thanks

Robyne

 

[Brenda Irwin]

Always subject to building/pest/finance appro. QS after settlement is icing on the cake, for approx building writeoff the building inspection should give you a rough guestimate. If an old house with no building writeoff I guess from 6 to 8k for regular F&F deprec. Not a lot but every little bit helps. Recently bought ip with above ground pool & found it was depreciable at 15%pa as opposed to 2.5 capital write0ff for an inground pool.

Anyone is welcome to pm me if they have any questions, we're here to help each other on the forum. I love it.

Cheers Brenda

 

[Robyne]

Thanks Brenda. I was wondering too, what sort of reno's you did on these properties for 3k. Did you supervise these renos yourself or did you get a good property manager to supervise?
Robyne

 

[quoll]

Thanks Brenda, that was a good read. I was worried that we weren't moving fast enough but on seeing what you have done the first few years are slowish and you can really kick on later.

We started 18 months ago and have 3IP's with 5 lots of tenants. Two are duplexes.

It seems like everyone wishes they had started earlier.

Graeme.

 

[D.T.]

Hi Robyne,

If ya get in there and do the right thing, ya don't need anyone to supervise

-Hehe

Dave

 

[JPM]

Brenda,
Do you use the QS services on all properties regardless of age, or just the ones after 1985?

Jason

 

[Brenda Irwin]

I use a QS on ALL properties regardless of age as my tax agent or me if I get energetic has to prepare a purchase summary of all new purchases each tax year.

The F&F items the QS unearths are deducted from the full purchase price to find the basic house & land amount.

This is important information for the tax agent if you sell the ip, something to do with finding out exact capital gains. I'm not real up on explaining it myself but the QS report keeps the tax agent happy.

Cheers Brenda

 

[always_learning]

Well done Brenda, over 5000 hits on this thread, this must be the most popular thread ever!

Congradulations on the 20 IP's and if I am ever in Brissie I will drop by and do your ironing in exchange for some IP advise!

 

[bundy1964]

Originally posted by always_learning
Well done Brenda, over 5000 hits on this thread, this must be the most popular thread ever!

Congradulations on the 20 IP's and if I am ever in Brissie I will drop by and do your ironing in exchange for some IP advise!

Hi Al

It is second on the list for now 6387 is the record so far for general

Time I went to bed

bundy