Sure thing, happy to help 👍😎

Where are you based?

Never worked with one but my guess is that if you could fit a rangehood above it, it might do the trick? Are you DYI or have tradies to consult?

CF+ is great for cashflow but wealth is with capital growth.

Could you elaborate on your current strategy? Ok, so you buy x properties that are CF+, then what? Sit and wait for the low capital growth to bring you to a point where you could refinance and buy another property? That could take a very long time… 😁

Darren wrote:

Ethan I’ve taken your advise & looked at past sales & current listings. I gather maybe 14% with a positive cash flow. Thank you for the tip.

Sure thing, happy to help 😊

14% is nice but usually most developers won’t look at anything below 20% (not enough margin for errors, issues, market changes) but I guess that I f it’s easy and you’re happy with the numbers, you might have found a nice niche for yourself! 👍😎

Hey mate, I think it was hard because your emotional need for a house met a wall. Now that you’re looking at it as an investment, things should be easier 😊

I would look at sold prices in the area, existing sales as well, how long it took them to sell and for how much so you could estimate the end price and profit.

Yeah, people can be lazy and most buyers, it seems, just want to move in. So if vacant lands aren’t selling but houses are at a good profit +cf+, you may be able to make killings there 👍😎

Hi Jad,

We wrote about LMI here if you want to have a read and see what I think.

Definitely stand alone properties. No doubt there.

Presuming you could borrow 88% (usually that’s the sweet spot as far as not paying too much LMI) on your existing properties and that’s enough for a 25% of the new property (20% deposit + 5% purchasing fees), then you should be good in that aspect. Your broker should be able to run the numbers and make it happen 👍😎

Great replies from Benny.

I would just add that the reason you calculate the yield on the purchase price (or even, better yet, on the actual cost price which is the purchase price + the purchasing costs = about 5% higher) is that the deposit and associated costs are coming from another property (not true for first property you buy, but it is afterwards) as that money would have been offsetting that loan and instead it’s being used to buy the new property.

Hi Sing,

Do you also have a PPOR? Does it have a loan against it? If so, that’s the loan that needs to have the offset 😉

MatthewF wrote:

Hi All, We have a number of positive cashflow properties that we are looking at selling. I’m just wondering the best way to go about selling them privately. Has anyone had any luck with the websites that claim to offer you the chance to buy investors email details? Also, it would be great to hear your opinion as to what return we should offer the properties to the market. being regional i Was thinking 8-10% ROI??Thanks, Matt

Never heard of such websites 😱 Do you have an exemple?

Suggest checking the recently sold in the area, maybe also engage a RE agent and/or valuer to give estimation. You can sell privately by using websites/agencies that through them you can list on realestate.com.au and other websites.

Hope this helps? 👍😎

“Nothing is easy, but who wants nothing?” – Donald Trump (years before becoming USA president)