Hi Andrew,

Thanks for your post.

When I have more news on the progress I will update the thread. I have found a builder who can either manage the whole project or just do odd handyman jobs I need. I will get some quotes on both options before I make any decisions. One benefit of him managing the whole reno as it will likely mean more convenience as I will be in Sydney by the time we get access, however it will likely come at at premium.

I will speak to a builder and hopefully I can knock out the wall. I dont see the point in paying money to renovate the kitchen and tile the area if I then decide to knock out the wall and I would be left with a small kitchen and then the area needs retiling etc.

I have checked out the floor boards under the carpet and it is in very ordinary condition. I dont see a polish making it look any better either. What about those fake floor boards? Would that be cheaper? I plan to hold this property after renovating it not selling straight away so my concerns are getting something that is cost effective but also durable so tenants cant destroy it!

If all goes well with building & pest report I will get some before pic's of the property and try and post them up.

Thanks for your advice Catalyst and Graeme.

I am sure I will have more questions to post when the reno's begin! I am very much a 'rookie renovator' so I appreciate all the help I can get! haha

Thanks Graeme,

Its seemed like a good place to start for a renovation as I know the area well and half the work is already done.  Estimate on rent is $320 – $330 p/w post reno and would appeal to a family. I will speak to a builder on Monday to ask about the wall. I first have to get pest report and building report done so I will try not to get too ahead of myself!

It has a double carport – by converting into 2 LUG's does it increase in value by much or is it not worth it?

Good point Banker.

Similar to gearing with a Managed Fund.. I have a margin loan attached and when the market is on the rise so is the value of my managed fund but when the market takes a dive, the value of the fund sure takes a hit.

I would think when your portfolio grows it would get too risky to rely on approval from Mortgage Insurers as they normally have a max total holdings they will cap it at?

Thanks Jamie and fredo_4305 for your comments.

I have paid LMI on my first property as i did not have the 20% however what your saying Jamie is that it is worthwhile to use it in the early days to get ahead quicker?

When I have enough equity to be drawing 20% deposits + stamp duty for IP's is that the way to go as it minimises your risk?

I have $100k LOC available and I am tossing up whether I use this for for 2 x 10% deposits + costs (as I dont think you can do 5% on IP loans anymore?) or just a 20% deposit + costs.

I know they lend up to 95% on O/O loans – so I guess there is away around it if servicing still is satisfactory, and then the property can be later leased out etc?

Cheers,

Jac