I agree that you shouldn’t sit on your hands too long. In fact I don’t think you should sit on your hands at all. However, that doesn’t mean jumping into the first thing that comes along. The first step is always to do your homework and understand what it is you’re doing. If you’re not getting to the point where you can proceed with confidence…[Read more]

(Part 2)

Comparing this to “normal” rental returns:
$194*52/$75,000 = 13.5% (rent pa / purchase price)
If the “normal” expected rental return is 5% then 13.5% sounds like a big ask.

To justify the above average rental retun on our purchase price we could say that we bought the property at a discount and base the rental retun on the…[Read more]