Welcome.

You actually have a great start. You can access some equity in your existing property (approx. $155K). The reason why I mention this first is because people on a low income usually say they can’t afford it (I should know – I’ve been there!). Talk to a Mortgage broker (preferably one on this forum – mainly because they arrange loans for investors not home buyers).

However I would suggest you start educating yourself before you invest, because only then you will understand how to invest, etc. I would pickup Steve McKnights first book (0 to 130 properties in 3.5yrs), as it provides a solid foundation. Also keep checking out this forum and be active, there are many people who have expertise in many different areas, so don’t let this free resource go to waste.

Remember education is the key! Hope this helps a tad.

Rgds.
Lucifer_au

For question 1: If I was putting no cash into the deal (rather equity) I still would inc. because if you do use a % of your equity you can’t use that on other deals, therefor you have to work out how hard your cash/equity is working for you (and you want it to work hard) and to make sure the deal is worth it.

Also you will have to inc. borrowing costs when using equity (interest repayments).

Rgds.
Lucifer_au

Yeah I know I’m a sucker….

Summary:
Total annual rent = $14700
Total annual mortgage = $3720
Total annual costs = $1450
Total annual cashflow = $9530
Total funded costs = $6125.00
Annual Cash On Cash Return = 155 Percent
Cashflow Positive Weekly = $180

Sucker for a damn good deal…

Of course the guy who sold it to me made $30K (and god did he let everyone know), but I still don’t mind investments that net me 155%.

Rgds.
Lucifer_au

How are the holiday caves with the temps? is it bearable in winter? I’m guessing you would be losing some serious makeral if it wasn’t… Hibernation might reduce CF too…
Finding a CaughtFish+ deal is always pretty good though (even if it is a bear market).

I read recently there might be a freeze on all developments too(?), so that would reduce supply and hopefully boost your CaughtFish further…

Rgds.
Lucifer_au

With multilisting it can be a race to the bottom. Basically because of the competition Agents more likly want a quick sale (to get their commission) and so therefor are more likely to reveal sensitive info (e.g. they rejected an offer at $300K, but they did tell me the least they would sell at is $308-$312K). Also some agents refuse to deal with multilisting.

Rgds.
Lucifer_au

“Forecasters expect retail spending this festive season to hit a record $33 billion – about $1650 for every person”

And people wonder why the gap between rich and poor widen… I think it has something to do with those ‘small, easy monthly payments’ and the lump of plastic….

But hay I just love debt and credit so I won’t complain (and no I won’t spend even 1/20 on Christmas (hay small family ).

Rgds.
Lucifer_au

Well heres my 4 books:
~Rich Dad, Poor Dad – R.Kiyosaki
~Cashflow Quadrtant – R.Kiyosaki
~Money Secrets of the Rich – J.Burley
~From 0 to 130 Props in 1 Yr – S.McKnight

That should give you an excellent grounding at the very least.

Rgds.
Lucifer_au

I wouldn’t have anything to do with a company that would try to sell one of my properties for lower than Bank Val. The lady probably reduced her commission becuase she thought it was going to be an easy sale. Stay clear.

Rgds.
Lucifer_au

The question becomes can you carry the property for long enough untill you get a new tennant? If you can’t I would be extremly wary of it.

Rgds.
Lucifer_au

Howm about doing a lease/option (or wraps) on the non performing properties? You can command premium payments without much downside.

Perhaps it would of be better to go after CF+ properties. You don’t have to work as hard since they are putting money into your pocket.

Rgds.
Lucifer_au