Has anyone considered this option, as a way of owning cash flow positive property?
There are a lot of them in the Dandenongs, so I suppose its very competitive.
As I understand, it needs fairly active intervention as well.
If you are using the income, not to earn a living
but for debt reduction, is this one way of having a cash flow positive property?
The thought occured to me when I saw an ad in the local R/E weekly for a two unit income bed and breakast in olinda at a pretty good price.
Unfortunately it was sold, before I had a chance to ckeck it out.Hi,
Interesting spin… I would want to appoint a manager though as from what I know, owners of B&Bs work pretty hard and have trouble taking an extended holdiay.
Another option is buying m/h-otels and converting them into blocks of units.
Good luck… be sure to due your due diligence.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi
An alternative to the B&B is a self contained cottage.
We have one in Daylesford (Victoria)and it is managed by an agency. Fees are 15%! however for their money they take all bookings, arrange cleaning, repairs, maintenance and deposit money in our account monthly followed by a report.
It does achieve +ve cashflow but prices around there have doubled in recent years so it would be more difficult to achieve.
The trick is to make your cottage fun and romantic so you achieve higher rents & more consistant bookings. The side benefits are that you can use it for yourself (off season of course)
Hope that helps[
]I forgot to give it a free plug. its:
http://www.zelmancottage.com
It will also give you hints at the things you need to do to keep the bookings goingHi,
Can u pls tell us something amore abt the agency that what kind of agency is involved and how it works???As this idea seems to be good
Hi
Real estate agents will do this particularly in resort type areas. In Daylesford there are 3 booking agencys that specialise in just holiday & weekend bookings. The Dandenongs near Melbourne also have similar.
This will only work where there is a huge demand for weekend rentals.
It works in seaside areas as well where the high rents compensate for lack of bookings in winter, however you would have to already own an IP as prices are now too highThank you for all the responses, yes I agree Yarra, the perception is of something cosy and romantic. Also, city dwellers sometimes want to get away from it all and have some green around them.
Having a rental manager, even at that rate, sounds very much worthwhile, certainly worth the money.
I can’t see myself cleaning toilets and changing linen.
Steve, I often see hotel/motel units for sale,and it would be a great low cost housing option, although I believe there are some criteria that need to be satisfied, for permanent accomodation.
It would be similar to waht you did in the Latrobe Valley.Hi Yarra,
I’d be really pleased if you could spare some time to talk about the ins and outs of your ‘investment’. My wife and I are keen to start up a B&B in the future and think this may be a good introduction. If ok, please send me your contact details to my email address.
There is some interesting comments here. Has anyone had any experience with related investments such as road-houses etc; as these typically show potentially good cashflow? I realise this is more about purchasing a business, but I was browsing a real estate page the other day and saw this road house that sold at Injune in Qld; and from the high level numbers (revenues, gross profit etc) quoted it looked to have potential. There is the issue of on-site management etc, amongst other issues I am sure.
Thoughts?
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