No just demo the building and split the block,it may sound very simple but the timeframe from start too finish can be very short or take years depending on the financial arena you deal in,someone that's being doing that for over 30 years does not need "OPM",they just have a deeper understanding of opportunities and frustration..
Where to I go to from now now!?
- Thread starter TMNT
- Start date
You should have a chat with Nathan Birch. He is likely to be a good mentor as his strategy is very similar to what you have been doing.
His typical strategy is:
- purchase a house under value in a low socio-economic suburb
- do an inexpensive reno
- rent out neutral/positive cashflow
- refinance to get equity back and repeat
His typical strategy is:
- purchase a house under value in a low socio-economic suburb
- do an inexpensive reno
- rent out neutral/positive cashflow
- refinance to get equity back and repeat
Judging by the price range the existing properties are in, I doubt you could develop them profitably.
Another great option for you to improve the cashflow, when your tenants leases are up, onsell them under vendor finance deals. In that price range there should be good opportunities as they are still affordable for the eventual owner.
There is a great book I am reading at the moment by Rick Otton, How to buy a house for a dollar, which is well worth a read and would assist you with this strategy, or any book by Steve McKnight would assist too.
Another great option for you to improve the cashflow, when your tenants leases are up, onsell them under vendor finance deals. In that price range there should be good opportunities as they are still affordable for the eventual owner.
There is a great book I am reading at the moment by Rick Otton, How to buy a house for a dollar, which is well worth a read and would assist you with this strategy, or any book by Steve McKnight would assist too.
...some good options already but if you just want a bit of cash each yr what about just selling one or 2 of your own each year after a reno and take some profits along the way? you can keep growing your portfolio and purchasing in same area if you believe in it for long term cg and rental growth but selling after the 12 month cgt discount has helped me heaps in the last few yrs.
a) can be done now or as you progress without to much difficulty providing tenants move out at the end of the leases for your three (3) weeks required and you have new tenants lined up at a higher rent to move in at the end of three (3) weeks or you may have extended vacancy periods?
Are you using the equity built to leverage into developing?
b) rinse-repeat-rinse? It's still a good strategy but whilst working well currently wouldn't facilitate your development strategy goals would it?
c) Is anyone in your area doing this currently, are you looking at bowling the house over and replacing it with 2-3 units? Is this viable in your area or would you have to look elsewhere? Your local council may offer some assistance with viability and options (zoning, town planning requirements etc etc)?
.....just kicking some ideas around as food for thought and discussions
I know nathan has heaps of other business ventures so I assume thats where his cashflow comes from,
I could rennovate my existing properties but I hear about people making 6 figure equity increases, I can assure you that with a $10-$20k major renovation I could only put on $30k odd of equity increase, subtract agents fees, comissions stampduty etc, there might only be $15k left, sure 15k, per reno, 4 times a year, is good, but as someone said, would it be worth it????
How does buying, reno, refinance, increase cashflow??? it would increase cash availalble, but it wouldnt be residual, and I would be paying cash for the renovation eg $15k reno = $45k increase, but after selling, cashwise id still be pretty much at the square one, even if my equity increased!
I dont think my story would be very marketable as having the ex take something which is clearly not hers is a tear jerker, but I started and got lucky in business ,which the average
joe wont be able to relate to
Apprecaite ideas, I love idea brainstorming
Im getting the feedback that I need a fair bit of cash and buffer for any sort of development, so hence I need to get big cash buffers with minimal neg cashflowed properties , so was thinkign that while I do the renos, it would increase cashflow and cash reserves, but Im thinking cashflow wont increase very much at all, so am trying to think of a way
waht do you mean by "Are you using the equity built to leverage into developing?"
I could rennovate my existing properties but I hear about people making 6 figure equity increases, I can assure you that with a $10-$20k major renovation I could only put on $30k odd of equity increase, subtract agents fees, comissions stampduty etc, there might only be $15k left, sure 15k, per reno, 4 times a year, is good, but as someone said, would it be worth it????
How does buying, reno, refinance, increase cashflow??? it would increase cash availalble, but it wouldnt be residual, and I would be paying cash for the renovation eg $15k reno = $45k increase, but after selling, cashwise id still be pretty much at the square one, even if my equity increased!
I dont think my story would be very marketable as having the ex take something which is clearly not hers is a tear jerker, but I started and got lucky in business ,which the average
joe wont be able to relate to
Apprecaite ideas, I love idea brainstorming
Im getting the feedback that I need a fair bit of cash and buffer for any sort of development, so hence I need to get big cash buffers with minimal neg cashflowed properties , so was thinkign that while I do the renos, it would increase cashflow and cash reserves, but Im thinking cashflow wont increase very much at all, so am trying to think of a way
waht do you mean by "Are you using the equity built to leverage into developing?"
