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Hi There!We have 1 PPOR, 3 IPs and 1 vacant block of land to build IP#4 on.
We started 16 months ago with our first property, signing the contract within 2 hours of seeing the property – mind you we had been looking for a few months so were on top of things when we saw the opportunity. It is a 4 B/R house in Windsor, about 5 Kms to Brisbane CBD. We were lucky to get it, as the agent had 9 other callers while we were signing the contract. It is a double block with a post-war house on it, so we can build units on it later. This one costs us about $10/week, but has been going up in value by at least $1500/week. We were able to borrow 110% to cover all of the costs as we owned our PPOR outright and had a few hundred thousand in the bank. It was tenanted from the day after settlement and has had 100% occupancy. From here we then moved into a new PPOR and bought number 2 at the same time. It was a bit of a hassle as we no longer had a house for security to get #2, so had to lock in a term deposit for the bank and settle #2 a few days after the new PPOR. It was quite messy, but we got there. The new PPOR left us with around $500K of equity, so was relatively easy to keep buying.
We got #2 in Bridgeman Downs. It was a 3 bedroom house, but we were easily able to turn it into a 4 bedroom house and added airconditioning. We had a tenant lined up to move in 2 days after settlement. This is neutral.
Number 3 took a while longer as we were settling into the new PPOR and doing a few things to it. We just bought this one on the 17th of June in McDowall and pre-paid the interest. The owners rented back for a few weeks and then vacated it, which allowed us to re-carpet, re-paint, add in ducted airconditioning and some minor plumbing work. It gets tenanted next Friday, and will also be neutral.
While all of this was happening, the block of land next to our PPOR came up for sale. This was more of an emotional purchase, as it means we can build a house on it that does not effect our views. In the mean time we can tax-deduct the interest while we work out the plans for the house. This all happened on the 30th of June, and again we pre-paid the interest. Unfortunately, no income on this one until we get a house on it, which might take us another 12+ months.
We have learnt a lot in doing this, and I think we will always have so much more to learn. We have built up a list of trades people who are really good and easy to work with. For example, our electrician, I needed to get some lights replaced in #3 so gave him a call. He met me at the house at 9pm one evening to do the work, did not have everything and came back the next morning at 7am. I had forgotten to bring my extension cord over, so he loaned me his for the night. Bloody Brilliant! If you need an electrician in Brisbane, I can certainly recommend him, friendly, courteous, does good work and is reasonably priced.
Good luck!
