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  • Profile photo of g_man08g_man08
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    @g_man08
    Join Date: 2008
    Post Count: 7
    February 17, 2008 - 7:10 am

    Dazzling… Those CF+ deals that dont meet your criteria… feel free to shoot them my way:) Im from Perth and wouldnt mind seeing examples of these properties around here! The only examples I've found are miles away and due to there rural nature are not very viable. Your help and motivation would be greatly appreciated!

    g_man08

    Profile photo of g_man08g_man08
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    @g_man08
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    February 13, 2008 - 7:38 am

    Thanks JL – valuable advice. Yeh the area I'm thinking of investing in is close to a lot of mine sites so shouldnt be a problem with job security. Ideally I'd like to rent it to a mining company.In terms of a building inspection and pest inspection- hopefully there are resources in the area… I'll have to investigate!  In terms of property management … again a difficult point as there is no real estate agents in the town itself. The closest agents are about 2.5 – 3 hrs away. I have been in contact with an agent and they generally dont look after properties there – though they do sell them there….minor hurdles! I think I could get one to carry out inspections for me, but in terms of general management unfortunately I think I'll be on my own. 

    any other words of advice would be greatly appreciated! thanks,
    g_man08

    Profile photo of g_man08g_man08
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    @g_man08
    Join Date: 2008
    Post Count: 7
    February 13, 2008 - 4:02 am

    Cheers JL. What about issues such as structural checks on the building? Did you get these done? Being positively geared I know its not massive money on the property but none the less I dont want to buy a dud – particularly as it is my first one. I have spoken to the owner of the property himself – and says that he rented it out for 250/week when he first owned it and since then has painted, put a new roof on and rewired the house. he intended on living in the rural area but that fell through so now wants to sell.  I know I probably need to just take the leap of faith but want to be sure about it and not make an error as i was not diligent…

    Profile photo of g_man08g_man08
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    @g_man08
    Join Date: 2008
    Post Count: 7
    February 13, 2008 - 3:24 am

    I have found that in order to get positive cashflow (11sec rule) you will generally need to purchase property further away in rural areas. Sure the area may not be good or the house that great for that matter but you are not trying to achieve capital gains but rather positive cashflow. These houses are generally less than $200k or more so less than $100k.  they are out there… my problem is finding the time to do a diligence check on them..

    Profile photo of g_man08g_man08
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    @g_man08
    Join Date: 2008
    Post Count: 7
    February 13, 2008 - 1:40 am

    I too am new at the investment game. I have found a property which would make a positive cashflow but the problem is it is in a very rural area that would require more than a day to drive there… Is it too risky to buy a property that I haven't even seen (apart from pictures) – I really can't believe I am thinking of it – but the numbers look really good.

    The property is less than $100k  (and would return more than 200/week)  – does anyone have any advice whether I should get an interest only loan that is fully tax deductible or should I pay the principle off as well?

    Thanks for you comments…

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