Can you lose?? Oh Yeah!!!

You need to factor in vacancies, management fees (high with these), rates, insurance etc. Doesn't sound so good then.
That's if you get through the hurdles Terry mentioned. Glad you decided to look elsewhere.

Plus these don't seem to go up in price. I looked at some in Sydney in 2008 and they are still the same price, whereas my SMALL unit I bought in the same area has gone up 50%.

Curious as to why the reference to family members being teachers?

I wouldn't rush in and join a program. Read as much as you can. Magazines are great for reading others stories about how they did it (get heaps from the library). This will give you an insight into different strategies so you can decide which suits you (there are MANY ways to make money in property).

My number one tip though is networking. Meet others who are doing it. That was the catalyst for me. I kept meeting these ordinary people who had multiple properties. I was thinking well why aren't I doing it. So I did. They egged me on. I thought I was pretty good with 2 properties until I met people with 10+. My goal was 1 per year but that only lasted 6 months then I was hyped up and took off.
I'm a teacher BTW. Everyone at work, thinks I've gone crazy. LOL

Good on you for thinking ahead.
1) a house in a "good" area won't necessarily give you a good yield.

It's virtually impossible (in a good area) to just buy a house and have it cover your payments. Don'rt forget all the other costs (rates, insurance etc). If you need a good yielding property search for areas that fit that need. You need to know what rent you'll get BEFORE you buy (not TRY to get high rent).

Do a lot more reasearch. Read magazines (go to the library). Get books etc.

I'm time poor at the moment so can't halp more, sorry.  Others will though. Good luck.

You are severely limiting your options if you go P&I. In my opinion there is NO merit in P&I. EDIT (unless you are so hopeless you can't help but spend the extra money on useless junk).

If you really want to pay down the loan do it via an offset account. That way your interest will be the same as if you were P&I but you have the flexibility to withdraw the money if and when you like. You can use this for further deposits on future purchases if you wish. If you, however, pay down the loan you then havce to ask the bank if you can borrow it back. They may say no.

Also if it is a PPOR and you decide to change it into an investment property you have no interest to claim. But you will have non deductable interest on the new home.

Good luck. I did the company ruin around myself and couldn't find one that I felt comfortable with so started on my own but started going to fortnightly meetups and it was invaluable. Networking with likeminded people gives you the knowledge and motivation you need.

There are a lot of experienced investors on this forum but also a lot of "advertisements" Be careful when reading "advice" from anyone, particularly ones where it is the posters first post.

The building and pest inspection form part of the cost base. You also add stamp duty, solicitors fees etc.

The depreciation schedule can be written off in the year it was incurred as it is an expense attached to the running of the IP.

You need to get yourself a decent, property savvy accountant. They are worth their weight in gold.

You can get a LOC on your PPOR and use this as deposits for IP's. Get an 80% loan (or more if you're that way inclined) for the purchase. That way it is stand alone and not crossed with your PPOR. Each IP is stand alone that way.

Seeing as you have no loan on your PPOR (well you have the LOC but it's tax deductable). If you have extra cash you can pay down the LOC or put extra money in an offset account attached to the IP. Do NOT pay down the loan dsirectly.
The reason for this is if you redraw the money you have paid down for personal reasons (buy a bigger PPOR/car etc) you lose that deductability. If you sumply pull it out of the offset account though you still get the full tax deductions.

You forgot to add "In my opinion".     Don't state things as fact that aren't in fact factual.

Oh. I thought you had to move back in. You learn something new every day.

So if you don't move back in after the 6 years does the CG kick in from the 6 years onwards?

Yes the 6 year rule would be the advantage. As you don't pay stamp duty not much of a gain from the FHG.

With the 6 year rule though you do have to move back in within the 6 years. If this is not likely I'd leave the FHOG for another time.
While you have good depreciation in the first few years, the property is quite negatively geared so keep that in mind as it will affect your cashflow and ability to get further loans for the next one.
Your idea of loan set up is correct for your situation. IO and money in the offset. That way you can use that at a later date for deposits.
I like to have a separate account where all my investment money goes in and out. ie rent goes in, all payments go out (interest, rates, etc). Easier for the accountant too.
Good luck.