Renovating for deposits (buy, reno, hold, repeat).

[Richard Feynman]

Who of you has had success in renovating properties to produce deposits to do more?

Ideally:

• Buy at 80% LVR
• Renovate
• Val shop
• Refinance with new lender at 88% (taking out more than your deposit/purchase and reno costs combined)
• Renovated property = cashflow neutral or positive
• Repeat

If so, I?d love to know about the projects (numbers, timing etc).

 

[TMNT]

yes many times, but with increased number of properteis and leverage comes increased risk

if the property market flattened or even dropped 5%, combined with a few vacancies, major renovations, youre going to go bankrupt very quickly,

leverage is a double edged sword, I have been considering this in the last couple of years once my IPs hit double figures

 

[ANDREW H]

You should also know the areas your buying in well so you have possibility for capital growth as well to limit risk. Nathan Birch and Michael Xia have done this u should read up on them as they use the same strategy, but there is more to it. Can make you highly successful, all risk is manageable to a point.