Who has bought a GENUINE cashflow+ IP in the past 12 months under $300,000?

[firstnamel]

Experience of Buyer's Agent to find CF+

Hi,

Anybody have used buyer's agent service to find CF+ properties?

Don't you think, that house prices can also come down on CF+ properties?...

I am seeing few house prices on http://www.oldlistings.com.au/ for few south east suburbs, and actually prices have fallen to their 2009 year price level?

Is it expected to go more down than that?

Regards,
firstnamel

 

[Alex P Keaton]

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[ZOMG]

Hi,

Anybody have used buyer's agent service to find CF+ properties?

http://somersoft.com/forums/showthread.php?t=89996

Seems like there's pros and cons and really depends on your circumstances.

 

[ChrisA1]

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??? What do you mean here??

 

[nhg]

Which requires research.

Know the area, know the rents, know the values and do the numbers. Our recent purchase will be positively geared. 1 because IR are low, 2 because we purchased below market value, 3. Because we are doing a small reno which will 4. Give us max rent for that area - which will ensure it will still be +ve when interest rates rise.

Also find your niche.

Mine is... well I can't share that much can I

There's many strategies that work for different people, find what works for you and do it so well, nobody can compete with you in a specific market.

Yes it's fun to own things everywhere and do different types of investments, but I found from talking with quite a few 'mentors' now, having your niche means you can cut out a lot of competition.

 

[Peter 14.7]

Also find your niche.

Mine is... well I can't share that much can I

There's many strategies that work for different people, find what works for you and do it so well, nobody can compete with you in a specific market.

Yes it's fun to own things everywhere and do different types of investments, but I found from talking with quite a few 'mentors' now, having your niche means you can cut out a lot of competition.

Niche also can mean that you have one sided strategy so an all or nothing bet. Does your niche allow for that niche to fall over due to unforeseen circumstances?

Regards Peter 14.7

 

[CHAOS]

Also find your niche.

Mine is... well I can't share that much can I

There's many strategies that work for different people, find what works for you and do it so well, nobody can compete with you in a specific market.

Yes it's fun to own things everywhere and do different types of investments, but I found from talking with quite a few 'mentors' now, having your niche means you can cut out a lot of competition.

I wouldn't have been able to make that purchase without the mentoring from the SS forum. Niche - haven't found it yet.

 

[jaspn]

http://www.oldlistings.com.au/

Lovely website design...

 

[Highlygeared]

Having accumulated quite a few IPs now, I find it crazy that people keep buying $200K props with $20 positive cashflow per week. One large repair would wipe out your positive cash.

I think the holy grail is to have no more than 20 props in their portfolio with some sizeable purchases thrown in...by that I mean close to a mill..and find a way to manufacture more cashflow out of them.

I don't know how Nathan lives with his 72+ props. Must be getting 4-5 calls a week with beauties like my hot water doesnt work, toilet's backed up, rental arrears etc etc. I can handle a $5000 repair on a prop worth $800K, but a (few) $5000 repairs on 200K props in some regional town in a given yr would really increase my blood pressure. Having said that, yes that guy is a machine.

 

[Rolf Latham]

I don't know how Nathan lives with his 72+ props. Must be getting 4-5 calls a week with beauties like my hot water doesnt work, toilet's backed up, rental arrears etc etc. I can handle a $5000 repair on a prop worth $800K, but a (few) $5000 repairs on 200K props in some regional town in a given yr would really increase my blood pressure. Having said that, yes that guy is a machine.

Ihave several clients of that sort of genre............they usually have a PA in house PM, if they have a business or a job

ta

rolf

 

[Alex P Keaton]

??? What do you mean here??

Subscribing to thread so I get every reply sent to my work email

 

[dmb1978]

I know people are not impressed with Canberra's market at the moment but I just got the following:
Borrowed whole lot for unit $287000 (includes stamp duty and lmi etc)
Rents for $360 a week
Bc $1970 a year
Rates/land tax $1000 a year.
Insurance $250

A tiny outlay but in a capital city with great rental demand.

 

[ChrisA1]

Subscribing to thread so I get every reply sent to my work email

Ahh for sure

I subscribe to threads by clicking on 'Thread Tools' in the middle of the blue menu line at the top of the thread, then click down to 'subscribe to this thread' (then there's another step or 2 to confirm the subscription). I have subscribed to 83 threads like this - my knowledge base

 

[leicachamp]

Thanks everyone that has shared their real life samples of Positive Cashflow properties. I just attended a Dymphna Boholt seminar and she paints a different picture. She was throwing cash flow + property's with 20k+ to $100k. She didnt really give any specific costing figures, but in general she was giving the impression to me that a portfolio of 1 million could generate 100k positive cashflow. She showed a vague samle of a 20k purchase that gave 99kpa cash flow positive!!! another vague testimonial of a 24yr old couple on 350k cash flow positive pa.

Based on the above real life examples in this thread it looks highly unlikely this is possible.

I have a large portfolio of Metro properties at near or cash flow neutral position. Was doing some day dream figures in my head during the seminar and contemplating on selling everything to go positive cashflow Why the hell work when i can just buy cash cow props and live off a lazy 350k pa!!!!

 

[ChrisA1]

mmmm, I take these 'free' seminars with a grain of salt (although love going to them as they get me motivated again and I might pick up a thing or two).

How long was the line for the product she was selling??

I love this forum as it's where the investors are...

 

[melzinoz]

Im working on a deal at the mo... owner has just counter offered $160k (on my $155k)...

Figures on my $155k...

P&I repayments $11,180 pa
Insurance $715 pa
Rates $1600 pa
PM Fee $1189

= $14,804 pa minus rental income $13,520 = $1284 negative pa ... pretty good considering thats P&I repayments but havent factored in maintenance

 

[nhg]

Niche also can mean that you have one sided strategy so an all or nothing bet. Does your niche allow for that niche to fall over due to unforeseen circumstances?

Regards Peter 14.7

Yes, all my properties thus far have other options. I am not comfortable with owning a single apartment in a block for that very reason. The day I buy an apartment/villa/townhouse as an IP is the day I buy the whole block.

I like options.

 

[channon]

I just got one recently

Moree NSW

Purchase $173k + stamp duty and other costs - around $180k

Rent 320 per week (settled at 2pm, tenants collected keys at 2.30PM)

Rental income = 16640
[email protected]% on 180k = 8910
Council + water = 2650
Insurance (LL + building) with flood cover= 770
Agent = 1280

CF+ = approx 3000 per year

 

[ChrisA1]

I just got one recently

Moree NSW

Purchase $173k + stamp duty and other costs - around $180k

Rent 320 per week (settled at 2pm, tenants collected keys at 2.30PM)

Rental income = 16640
[email protected]% on 180k = 8910
Council + water = 2650
Insurance (LL + building) with flood cover= 770
Agent = 1280

CF+ = approx 3000 per year

Nice work!!

Where do the tenants work? The employment front is still moving along in Moree?

 

[channon]

Tenants both locals working services industry (so not those seasonal workers)
Last I went was April, apprantly if you wanted a job up there you would easily get one.