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which state was that in?
go for that one scottybe. i’ve got commercials and the only costs on what you have said are management and building insurance. depending on your state and your lease arrangements, sometimes the tenant pays that, sometimes the owner and sometimes it is split.
having a blue chip tenant (bank?) on a long long lease is fab. if the tenant is not a blue chip, make sure that you keep up to a year’s repays handy in case your tenant goes bust. this can be in a line of credit or extra repays along the way etc. i am assuming your purchase is a smaller regional from the price and business is tough in the drought. being prepared means you can be there for the long haul.
graismemark; does your mum rent her properties? even at five percent returns on their current values, she should be grossing $60,000pa. the fact that she is on the lowest tax rate would indicate that she may not be doing this. before she looks at further investment, perhaps she needs to re-evaluate her current returns. with all that paid for property, she should be able to retire on her current wage now and still pay off an investment if she really wanted to.
the house on land; not big enough to build a duplex onto? nice little hobby to build a duplex on land attached to a house; then sell off house, one unit, keep one and do it again the next year….
grace
