I have recently purchsed a block of 4 units in cairns- basic besser block, good clean condition, pool in complex. The rent return covers the mortgage however additional expenses (insurance etc) means we are behind about $130 per week ($30 per unit). We knew this was the case but plan to turn the negative into positive through minor improvements to the property. We are looking at putting airconditioning into the units and other cosmetic changes. Some minor landscaping could also improve the general appearance of the property. Does anyone have any suggestions, what we could think about to help us turn negative into positive cashflow?
Thanks very much
MelMelissa Letford
Have a look around at what median rents are in the area.
Possibly at units slightly better than yours, giving you a goal to aim for both in renovations/improvements and in tenants rents(income).
Look at what is is going to cost you for the improvements and how much it will increase your rental income. In the short term,i’d say it’s still going to be negative as air conditioning and landscaping etc will still be a financial drain.
How about a tax variation if you earn an income?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI agree with redwing. I don’t think you can get an extra $30 per week for air con. Also are people really willing to pay extra rent for landscaping when (if it’s units) it dosne’t really effect them?
Perhaps find some other CF+ property and make it neturally geared.
Rgds.
Lucifer_auPeople like to feel secure. Maybe installing some security like an electronic gate in to the complex could warrant raising rents. At least something like this is only one initial outlay which directly affects all 4 units.
Anyway just an idea.
CYA.Work smarter, not harder!.
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