Greetings,
I have been reading through this forum for some time now and thought I would make my first post with hat in hand hoping to receive a bit of the insightful advice.
In 2000, my wife and I purchased a 2 bedroom semi in Sydney’s inner west for $230K. We lived there for two and a half years. During that time, I gutted and refitted the bathroom, relined the laundry, landscaped (front and back) and put in a new jarrah floor. We sold it for $420K.
Now we have a three bedroom house with a sizable block with much sort after off street parking in the same suburb which we purchased 2 years ago for $500K. We now owe approx. $440K on the property. A recent valuation from a local real estate agent put the value at $620K.My wife is now a stay home mum. On one wage we have decided to move in with a kind relative for a while. A couple have agreed to rent our place for $455 p/week.
To cut a long story short:
My goal is to buy, renovate and sell on a full time basis. Perhaps I should think about using the equity we have to simply accuire more IPs?
…or am I only dreaming??
Adviser,
Thankyou. You are right, the last thing I want to do is threaten my little family’s well being.
My focus then, should be to use the little bit of equity I have to acquire some positive cashflow properties.
Do you know where I can find resources that could help me learn how to identify potential +ve properties?
Thanks again,
Dennis
ok mistake 1, if you were intending to rent it out, renovating while you lived there means you cannot claim those renos as oyou werent earning an income from the property at that time.
mistake 2 relying on the good nature of family can only go so far.
We only started investing when we lost my wifes income, 3 years later we have 20 props and dont look like stopping. The key is cashflow. I agree with the others who say too much debt to equity ratio.
Ok if either of your income streams ends for whatever reason you guys are in da kaka. If on the other hand you divested yourself of 1 x 620k investment and bought 5 x 100k investment and had great cashflow then you would look safer and your wife would work on your investment portfolio instead of being a wage slave.
Ideally this will lead to your not being a wage slave and then your thinking changes too and the world looks prettier.
Think of your real options which are many but dont forget, people you love come first.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Thanks you for your advise. I’ve decided to read Steve’s “0-130….” and am halfway through it. If the +ve cashflow property still exists, my equity has a new direction.
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