My Green Ugly Duckling - #3

if you want it badly enough you will make the sacrifices to make it happen. If you don't, you'll make excuses as to why you can't or won't be able to do it. If I can do it, anyone my age can.

Well said!!! All it takes is drive and action.
 
I'm actually flying up to QLD for the settlement (Wed 24 September) and will be assisting with the reno. I'll post some update pics of how it's looking!


Might turn you off haha
 
Hi Nixba

How are you managing/organising the reno with the whole interstate thing?

Cheers
Pins

Hi Pins

I'm using the same tradies who did works on my Bourke Street townhouse earlier this year. They were recommended to me by some successful property investors in my network and I have found them to be very reliable thus far.

Also- as an update, we've been granted early access to complete the renovation. Tradies will commence work on the 17th, with settlement taking place on the 24th. We would be looking at a tenant moving in Monday 29 September @ $330pw.

Regards, N
 
Hi guys,

Just an update on this property. We settled yesterday and renovation works are commencing on Monday. I'm up in Brisbane atm, and will be going and seeing the property tomorrow.

Our PM has a tenant lined up at $330pw. At this stage we are looking at them moving in on Monday 13 October, however if renovations are complete earlier, they will move in earlier. The tenant is paying 3 months rent in advance.

Will post some pictures once the Green Ugly Duckling has been renovated.

The planning now begins for #4, #5 and #6 in 2015!

Kind regards,
N
 
Hi guys,

Just an update on this property. We settled yesterday and renovation works are commencing on Monday. I'm up in Brisbane atm, and will be going and seeing the property tomorrow.

Our PM has a tenant lined up at $330pw. At this stage we are looking at them moving in on Monday 13 October, however if renovations are complete earlier, they will move in earlier. The tenant is paying 3 months rent in advance.

Will post some pictures once the Green Ugly Duckling has been renovated.

The planning now begins for #4, #5 and #6 in 2015!

Kind regards,
N

Great stuff mate. One question, why is the tenant paying 3 months in advance? Great work on also getting someone before doing your minor reno. Is it a tight rental market around there at the moment?
 
Hi Nixba, love hearing young investor stories! Can I ask with regards to your 97% LVR, is that the same with your other IPs? Do you try to reduce your LVR on them or leave as is since it's cash flow positive? 3 IPs by 24 WOW.

Thanks,
Dex
 
Well done Nixba! I've been following your posts closely, very inspirational to say the least.

Thanks for the kind words Cenz. I'm glad my journey has resonated and inspired you. My long-term girlfriend and I are both building similar individual foundation portfolios so I will continue to post updates as we continue to progress in our journey. Our goal together is to have 10 properties by the end of next year. We currently sit on 4, but she has about $150k equity to play with so will buy minimum 3 next year. Even with this top up, her current property will be neutrally geared and not effecting lifestyle. I'm also hoping to buy a further 3 as well. Fun times ahead!

Great stuff mate. One question, why is the tenant paying 3 months in advance? Great work on also getting someone before doing your minor reno. Is it a tight rental market around there at the moment?

Thanks for the kind words SamL. Not really sure the tenants motivations behind paying 3 months in advance, but I'm certainly not complaining. I don't believe it's a tough rental market in SE QLD at all, I just think you need to have a proactive PM who is informed early about settlement dates etc, who can start doing the leg work in preparation.


Hi Nixba, love hearing young investor stories! Can I ask with regards to your 97% LVR, is that the same with your other IPs? Do you try to reduce your LVR on them or leave as is since it's cash flow positive? 3 IPs by 24 WOW.

Thanks,
Dex

Thanks for the kind words DexV2. In regards to LVR across my portfolio, it's sitting at approx 85% based on current valuations. I've deliberately been very aggressive in terms of lending, purely because I'm still living at home (no rent), can save $5,000 monthly, and I am buying properties with high cash flow, so even if worst case their values drop, I can hold during the tough times. I work out my cash flow on each property based on 7% interest rates. I also have a non-negotiable $5,000 buffer for each property put aside for a rainy day.

Whilst I'm very humbled with the feedback from the forum, there is still a long way to go and I look forward to continuing to share my journey in the hope of inspiring others to take action. If I can do it, anyone can.

Kind regards,
N.
 
Two portfolios! That us really good. Keep updating as we all love such inspiring stories!

Yes - two completely seperate and individual portfolios. Her's is 100% in her name, and mine is 100% in my name. From a risk mitigation perspective, we are keeping everything 100% seperate until marriage. If worst comes to worst, and we go our seperate ways, there is clear seperation.

N
 
Hi guys,

Just a quick update - just had confirmation from the agent from All Suburbs Real Estate that the property that was for sale in the same street as mine (number 9) sold for $305,000 and settled on Friday last week. Here is the link: http://www.realestate.com.au/property-house-qld-waterford+west-116981455. Exactly the same as mine in terms of high set, block size, bedrooms, bathrooms, car spots etc. I paid $242,500 and am spending $10,000 on a reno.

This will now become a direct comparable for mine as and when I decide to go and get a valuation for a top up. I don't think mine is in the same condition right now, but once mine has been renovated with fresh paint internally/externally, new back stair rale, some general landscaping/clean up work out the back, polished floorboards and a good overall clean throughout the property (especially bathroom/toilet/kitchen), I think they will be pretty close.

Kind regards,
N
 
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Just wondering how much are you paying to paint the place?

Seems like $3k is the figure for 2 bedders in qld?

Hi Moneyman_85

Full internal and external paint for this 3 bedroom house comes to approx $5,000 total (which includes 3 coats internal walls and 2 coats for ceilings, doors and frames). The $5,000 total also includes a gerni wash for the entire externals of the house as well, including rear decks, step treads etc.

Hope this helps.

N
 
Just a quick firstly nice work you are well on the road to freedom keep up the drive.

I noticed did you include property management fees in you calculations??
 
Just a quick firstly nice work you are well on the road to freedom keep up the drive.

I noticed did you include property management fees in you calculations??

Hi kingchevy

Many thanks for the kind words.

Yep - property management fees were included into the calculations from the initial post.

The Numbers:
* Purchase Price: $242,500
* Expected rent post settlement/renovation at $330pw (day one yield of 7.07%). Rental income monthly = $1,430.00.
* 97% LVR inc LMI capitalised - total loan: $237,067.00 from Westpac at 4.84% = Monthly repayments of $956.17
* Other expenses: Council rates ($233.33pm or $53.85pw), Building & Landlord Insurance ($72.15pm or $16.64pw), and Property Management fees ($109.69pm or 26.18pw).

Total Cash Flow Pre-Tax:
Income: $330pw or $1430pm
Expenses: $316.46pw or $1371.34pw
= +$13.54pw or +$58.66pm

Hope this helps.

N
 
Hi kingchevy

Many thanks for the kind words.

Yep - property management fees were included into the calculations from the initial post.



Hope this helps.

N
Nice the figures look good then.
Just a question what initial cash down did you have obviously you payed stamp duty etc and captialised the lmi on the loan.

Also how did you get info on the rates cost and insurance?
Did you find big variations in these from suburb to suburb?
 
Hi Moneyman_85

Full internal and external paint for this 3 bedroom house comes to approx $5,000 total (which includes 3 coats internal walls and 2 coats for ceilings, doors and frames). The $5,000 total also includes a gerni wash for the entire externals of the house as well, including rear decks, step treads etc.

Hope this helps.

N

is it just me or is that alot of money for a paint job?
 
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