Case Scenario ???

Hi All,

I am a newbie to the property investing game. I live in Hobart, Tasmania. I would just like to get some idea about how other people structure their deals.

I found this house, using (Either Steve & David’s or Tony and Max’s) method of dividing the weekly rent by 2, then multiplying that figure by 1000 to get a ball park purchase price figure. This, in theory, will give a 10% return (If I remember correctly)

Weekly Rent = $140

140 / 2 * 1000 = 70,000

$70,000 is what the property is on the market for. It is in a ‘Norm and Sheila’ neighbourhood. I haven’t investigated too deeply yet. I am just getting a rough idea at this stage.

If I was to purchase this property I would (Hopefully) be able to positively gear it until the current tenants move out, and then try WRAPping the property to new tenants.

Does any one have any suggestions or ideas about how I would structure this deal to produce positive cash flow?

As I said I am very new to all this, so I’m sure there are plenty of details I have missed and not accounted for. What else needs to be considered when searching for WRAPable properties?

Any help would be greatly appreciated.

Kindest Regards,

David John