Just food for thought....
Think about this, the $400 per month ($4 800pa) you can make for a couple of hours per week driving around can offset most peoples negative geared properties.
For a few hours per week you earn another $1375 (around this mark) per month. Times by 12 = $16 500 in cash turn over.
This will increase your borrowing capacity for loans on Investment Properties. By how much will depend on a case by case basis.
Something else a small business like this will help you with is learning how to control a business financially. Let me tell you it's definately a different ball game managing finances for a business then it is for your JOB Income.
This small business, with a very little outlay and the possibility that if it works for you with 10 vending machines that you may want to expand your operation to a larger business of 100 machines or more...
Of cause you will need to complete due diligence in the process of purchasing any business.
Another due diligence question for Mitchman is, is this a WIWO or $16500 +SAV price?
And, why are you selling out?
What was your intention for buying the vending machines in the first place?
One last word, 29% ROI is a hell of a lot better then most people can get on property (not including capital growth, cause Cap Growth cannot put food on your table, or pay for the 2 month holiday to India unless you sell it {or take out a non deductable loan}).
Cheers
Robert
Disclaimer: I do not advise anyone to either buy or not buy this business, I am simply raising points to note when thinking about business acquisitions.