You need a mixture of both CF and CG unless you earn big money and can afford large out of pocket expenses.

Sometimes people have some of both. That way the +CF helps ease the pain of the -CF. You can only hold so many -CF properties before you can't afford to hold them.

Also what's your end goal. Mine was to buy quickly then retire quickly so I needed cashflow in order to get me there. 

As Freckle said do your DD. We looked at this many years ago. We were going to go halves with friends. LOTS of work and you are tied down daily.

Not my idea of retirement.

Not sure about Qld but in NSW you cannot charge the tenant water usage unless it is water compliant.

In NSW there are companies that do it for $99 + change the taps if need be. If it's an old property you will need to change the shower head at least. In NSW a few years ago they had people knocking on doors giving away compliant shower heads. Check with you council.

It sounds like you want a mortgage broker. If so there are some good ones recommended on this forum.

Or is it advice you want on where to take your portfolio/where/how to move forward?

I've tried many financial advisers over the years but have given up now. They only push managed funds and no very little about property.

Where are you located? I've found all my answers through forums and networking with like minded people.

Thanks for clearing that up Mike.

I know what you mean,. We learn something new with each reno. Although we haven't done any major structural renos.

We basically strip everything out (sometimes a few walls) and put in a new bathroom, kitchen, paint, carpet etc in 5 weeks. It's worked well as a start for us and built our equity and cashflow quite quickly. And with the recent "boom" in Sydney that's the icing on the cake.

We did one fire damaged one but not too bad. That was interesting. Learnt that sometimes it's cost and time effective to rip out gyprock rather than try to clean. We were thinking of going into buy/reno/sell but my hubby keeps hiding the cheque book!!! LOL I think maybe he's over the reno's (I have been keeping him busy). Thinking of other strategies now.

A book sounds good.

Buying burnt out properties are not Nathan Birch's approach. He has done very few burnt out properties actually in the scheme of his 150 properties. He did a few burnt out and vandalised properties as he was bored I think. He's moved on to bigger and better things. He never did like getting his hands dirty. I love his one that he moved in to and did a video series.

It is possible but as FMS said you need equity to start (not necessarily a very high income).

The strategy usually involves buying under market properties and doing a reno (sometimes it may be one paint so low cost). Then get revalued (yes this can be difficult in under 6 months with some banks). So you may not buy 12 in the first year but once you have a couple and they have the equity to withdraw you can ramp up the buying.

You don't need a massive income if you concentrate on getting good yield./ This doesn't necessarily mean you have to forgo CG. If you buy a property under market and do a reno the yield is higher. If it's neutral CF then the bank won't have a problem with servicability. 

My plan was to buy one a year but it gets addictive and you just keep buying. As soon as one settled I got pre approval for the next. Even if I didn't want to buy straight away I had it ready just in case something came up.

I know several people that have bought over 5 properties a year. None are on high incomes. One young couple moved in with their mum to save money. They bought more than 10 in a year.

If you want a big portfolio just buy one then keep going. You don't need to say "I want to buy 5 this year". It starts snowballing once you find a winning (for you) strategy. Everyone is different. I have friends that say "OH I wouldn't buy a house out there". Now they are asking me how I can afford to retire early. LOL Cashflow is King!

Good points Mark.

I don't get why you put the "you don't know what you don't know" under Reno = risk. That applies to life not to specifically to reno's. It's great that you've renoed 100 properties so does that mean you know it all now??? I find your comment very condescending. Thanks. Pity you didn't make much money doing it. I may be a small fish but I'm very happy with my profit margin. I think it's a great way to get started and build equity quickly. I must admit though that I have now moved on from that strategy but it gave me a great start.

I may not be renoing on the scale you are but I have had success with all my reno's. That's what I know and it has worked for me. 5 weeks is not a long time in my books to gain at least 10% equity.

I doubt that the average person would pay only 3% more buying new.

I just reread what i wrote about the houses being worth the same as an new build 5 years later.

I meant a place that was 5 years old when you built new would be similar value 5 years later. A 5 year old house is not old in the scheme of things. I did put that but edited and lost it.

There is not one way to buy property, as you know. I was just giving the OP options. He can work out which suits his circumstances.

As you mentioned, you pay a premium for a new house. Why pay more just to get a bit more depreciation. Sounds like false economy to me. In 5 years time they'll be the same but you would have paid more to get in.

Have you considered buying an older property (cheaper) that needs some work? Do a reno and that gives you depreciation. So the total spend could be a lot less than buying a newer home BUT you have built in equity and still have depreciation.

In the end you should buy something that makes financial sense BEFORE tax benefits. Remember tax savings are the icing on the cake they are not THE cake.

Most of mine are in Mt Druitt and Blacktown. Yeehah!!! They have risen very quickly already.

My one closer to the city still has a bit to go as the area has not seen a lot of growth yet.

Areas are moving at different rates.

Congrats on your sale.

Yeah sorry I was being sarcastic.

I just think it's ironic that you only invite young people but if someone has something to offer you, then you'll make an exception.

I can see how it would be fun to have young ones all having a gathering. But I stick by my restrictive comments. Same as I wouldn't advocate an oldies meetup. Sure lot's of us "oldies" have years of experience but young people can have new ideas. If age were a restriction at the meetups I've attended I wouldn't have met Nathan Birch (who I admire)  or some VERY well healed older investors. Many of whom have helped me get to where I am now.