Thanks for the cruel but fair advice W4L,

Affordability is the word…as not being a millionairre.
I have one as my P.P.R. and think I just bought  another of the same properties youre advising me to look at, in my local area. Your cliche' safe neg geared, slow steady grower, good infrastructure, ameninties,  location, and as you say …bla. 
So as to not throw all the eggies in one basket am looking to diversify, for some high yields, subdivisions, small developments, etc. Not to get rich quick, just  attempting to bring all properties closer to pos geared …. as you do.   
Thus Chinchilla equals Affordabilty.
Being aware of the obvious high risk you mention in mining town investment for the rewards, extensive due dilligence is paramount, which required daily reseach of the Surat Basin for many mths. Meeting with local council, town planners, most agents and developers, contacting mining cos, viewing all properties of interest, bla.. bla….. 
Then cross checking all thier bla with all the bla that have been monitoring in the press , PDS Live and RPData, and make a decision. 
I understand, respect and practice youre preference for the safe low risk, slow grower. 
If you are the type for a calculated risk and/or diversification, then from the due dilligence and this town being in the heart of a growing cleaner fuel Coal Seam Gas industry, beyond the doom and into the gloom Chinchilla maybe a means to one day affording the secure bluer chip, safety houses you talk of. Thats the long term plan anyway.

Cheers … 

Eddie,

Thank you very much again.

The imformation is greatly helpful … all is quite complex but will be seeing Neal next week to hopefully tie it all up asap.

Cheers,

David.

Thank you for your advice Steve,

I think I understand your tip on targeting the correct demographic with the correct level of reno standard. From my words with local property managers it seems that a less costly tidy clean look is suffice for the more blue collar tenants in these streets of the area, since there is more expensive up market housing estates under construction nearby attracting the higher rent paying executive tenant with 4 b'rm 2 bth brand new homes.

From working the calculation techniques from your books, hopefully with a quick repaint and new floor coverings,etc this should reach the 7% rental yeild mark for starters. With hope of rental price increases (due to lack of supply) and the forecasted falling interest rates pushing this yield higher in the future.

My objective initially is not to sell immediately, the main reason for choosing this property is its on a flat 1007 sqm block (with 46m frontage) .The house is built tight close to one side of the land.Leaving about  a 25m x 20m clear yard .(Council require minimum of 300sqm per dwelling for strata titles, but is too small for sud divide). Have had meeting with council to confirmed this. What is the downside to resell under strata titles, if any?Also its just inside the commercially zoned area.So if/when growth increases my future plans to acheive the sacred pos geared yield is to keep the house and develop strata titled, either business premises or multi dwellings ( t'houses or a duplex maybe due to extreme lack of supply and high demand for low maintenance smaller size housing).Then sell one or more, and retain the highest rent returning dwelling(s) to fund future buys depending on the sums.

Am pretty tight on the bucks to get this purchase over the line , so will take one step at at time. Have been pre approved with the bank at proviso of  the 7% yield is achievable, thus the reno is somewhat essential.The property manager has confirmed she will appraise the rent at the post renoed figure as long as I do do the work. Which I will. So will wait and see what unfolds down the line.

 I will certainly do all the things youve kindly advised to hopefully achieve the value top up, (I can smell the new carpet already). 
I would very much like to obtain the Renovation Toolbox when it becomes available. Will you advertise its rerelease?

One more question (not really reno related tho) which is quite important… Since there is currently a tenant in the premises with another 3.5 mths of their lease remaining on a considerably lower than current market rental figure. Can I if possible request from the vendor an extended settlement date till the tenants vacate, and with an extra 3 weeks also added  so as to do the above required reno work and have enough time to advertise at the higher rental price? Is this possible/ethical? How would the offer be worded so as to achieve this?

Again thanx  very much for your reply. I hope my words make some level of sense and if theres any further advice you have time to add, it would be greatly appreciated.

Cheers,

Dave. 

Thanx for yr comments Qlds007.Sorry if sounds confusing….
  Basis of the post is to find advice on the use of setting up a Company to try it another way to obtain credit for more investing when have been told by my bank that am near my borrowing limit.
  Re; try other banks.The lender CBA that Ive all my exsisting loans with (and first asked for more funds), is also the one the broker suggests is the most flexible in Aust for lending to more remote areas, is not willing to lend me just not enough for what iam trying to purchase.
If you can suggest any other banks, or ways of doing this, would much appreciate.

Thanx Yarpos,
 
I may have a build and pest report to check the severity of damage and extent /quote of work needed.

I live in QLD and yes the distance is of concern but my reasoning is that close to where I live is beyond my price range for what banks are preparred to lend. Claculated on cash flow and equity thats appox $180K with a $200 p/w rental return.

The 1st property is brand new, tax depreciated blue chipish, high growth (hopefully) and neg geared. The leverage for this next one is being created by #2 , a cheap total outright owned W.A. mining town house pos geared with $100 week rent.
 Feel #2 is idle $ that could be used for another venture.

This cheaper residential one became interesting due to the want to diversify the portfolio away from another cheap mining town again if possible to keep all eggs out of one basket. 
So there is one blue chip, one cheap mining, one cheap residential. Then sit and wait for growth before diving in again.

If anyone is aware of any area with buys in the $180K price and $200 p/w rental return range pls speak up.

Maybe mining town, or units ( trying to avoid due to overheads) is the only option at this price.

Thanx for youre words. Sorry this changed from a reno/repairs dicussion to financial….

Thanx for that help…I feel its worth getting pro advice rather than risking faults for saving small $'s in the important initial set up.
 I have contacted a group I found on the forum in Maroochydore QLD near me. Active Finacial Answers.
They have quoted $300 per hour rate for their services. Is this standard for sound advice or too expensive?
Also if applicable for any needed extra forum imfo in relation to Co.'s and Trusts, in my last posting I didnt mention I have a defacto partner (works part time for a company on $44 000 p/a wage) Mother of our 3 kids.13,10, 4yrs old.
I work full time for a company on about $88 000p/a.Thanx again!