Though not my cup of tea, I had this thought of a way to derive income from property that you control (not own), in order to get cashflow.
Here's how it might work:
1. Farmer Joe advertises a spare house on the farm for removal in the Trading Post (etc)
2. You do a deal with the farmer. Instead of removing it, you buy the house (building only) for a nominal amount (no more than a few thousand) and sign a lease with the farmer for the land the house sits on. This lease could be long-term and be fairly cheap (say $1000pa)
3a. You appoint a PM to manage the property as an ordinary rental
3b. Or you manage the property as an ordinary rental
4. If the tenant pays you $100pw rent, and your outgoings are $50pw (the farmer's lease, insurance, maintenance and management) then you've got $50pw cashflow.
This scheme sounds most suited for an (otherwise) not employed person in a country town who is able to do their own management themselves.
It also has some of the problems of rural CF+ investing (ie if the HWS breaks you're behind for weeks) and there is no capital gain as you don't own the land.
Has anyone done something like this?
Peter
Here's how it might work:
1. Farmer Joe advertises a spare house on the farm for removal in the Trading Post (etc)
2. You do a deal with the farmer. Instead of removing it, you buy the house (building only) for a nominal amount (no more than a few thousand) and sign a lease with the farmer for the land the house sits on. This lease could be long-term and be fairly cheap (say $1000pa)
3a. You appoint a PM to manage the property as an ordinary rental
3b. Or you manage the property as an ordinary rental
4. If the tenant pays you $100pw rent, and your outgoings are $50pw (the farmer's lease, insurance, maintenance and management) then you've got $50pw cashflow.
This scheme sounds most suited for an (otherwise) not employed person in a country town who is able to do their own management themselves.
It also has some of the problems of rural CF+ investing (ie if the HWS breaks you're behind for weeks) and there is no capital gain as you don't own the land.
Has anyone done something like this?
Peter