David I dont want to overstep the question but what is the end goal in relation to this approach and how do you see it playing out?

Hey Steve, I live at burleigh and am going through that atm with a buddy for his block.

I understand the gc town planning rules and scope and would be happy to have chat and maybe sit down if it seemed like the way to go.

in regards to area etc there are a stack of options depending on exactly what your budget and plan is, but I understand and can break down most of it.

Kind regards

Jaxon Avery

I do not, So this requires a bit of trust with local Property managers, but remember if your giving them work and paying them, then this works out great as they want a easy to manage property.

make sure the local agents/manager go do a pre rental inspection and check every aspect of what would be required for it to be rented, as well as a list of any work and etc that would need to be done.

on top of that you get pest, building, engineering if required, anything that may be a concern, then insurances and your fairly safe.

Kind regards

Jaxon Avery

Good question,

so easy answer is;

I care about these numbers;
-ROI (I wouldnt do another deal under 7% I cant imagine)
-ROI of deposit verse positive cash flow, in my opinion this is the real ROI, so for e.g. the above deal was $29,000 for $3700 thats 12.75%, and also I dont add any tax or any other gains, just input verse output cash on first year.
-If its a build or fix up or simular, I get quotes for the work, plus estimate time frame and the cost for that time, repayments etc and calculate purchase price + all expenses verse the estimated valuation and rental income, there is no formula as you have to recalculate and each deals going to sit differently but once you kind of understand how to simplify and do it, then really easy, also add 10% idiot costs as a worst case, I like calculating everything on 3 settings, worst case, best case, then what I think it will actually be.
-I also calculate how much it would cost to rebuild, I find this such a useful process, If I am buying a 4b2b on 600m2 for $300,000 and to build a 4b2b cost $320,000 for the cheapest builder and it fits my other criteria I look on it differently (this is a really long part to explain but I hope this shows the build cost are important)
-Study Rental market
-Study recent sales for area
-study the area
-study local rates and fees
-Insurance costs
-Body corp numbers and issues with building that may cost owners big

I am sure there is a lot more I look at depending on each specific deal but these are the ones that come to mind at 11.30pm at night.

But bottom line the most important thing about any purchase is

Risk/value

I know that may seem simple and common knowledge but that is the most complex calculation, risk is such a broad and deep thing and the value is almost just as complex.

If you can know all the risk and all the value, then that person would be the king of investing.

Hope this helps? any questions to clarify I am more than happy to.

Simon,

so the contract is king! also there are legal ways to end leases early, although I am not suggesting anything at all and you can read them on QLD.gov.
https://www.rta.qld.gov.au/Renting/Ending-a-tenancy

So there are generally clauses in a QLD rental agreement and on top of that landlord insurance would of covered the owners if they put it in place.

But first and last point, dont break leases and if you have to, midigate the risk, they could of advertised it or done a few things to try get out. but sounds like it resolved itself.

Kind regards

Jaxon Avery

Tom I hope I am the middle voice because you really need to hear what Corey said (In my opinion) then once you understand everything he said and all the risk and points, its your choice to make.

-There is very little captial growth in these styles of properties (but for 86k with a 220 rental return and a positive cash flow, does this matter really? if thats true)
-Limited control due to bc and fees that may rise largely without you having control
-loan rates will generally be slightly higher for this size loan
-Insurance that covers you, also landlord insurance is a good idea I think

So lets run the numbers

Purchase; $86,000
ROI; 220×52 / 86,000 = 13.3% return which is remarkable (but we have bc fees that are half of that)
Weekly Return after expenses; $90 (220-9%-110-30= $60 per week is my guess after all expenses (+mortgage)
Yearly Return after expenses; 90×52 =$4680 after expenses (not incl Mortgage)
(my guess) Yearly Return after expenses; 60×52= $3120 after expenses (not incl Mortgage)

Now your mortgage repayments are on a 70k loan around $90 a week

So you will actually be loosing money mate. or barley breaking even, if the Body corp fees were lower it might be worth doing IMO but I wouldnt do it personally due to crap return after expenses, low capital growth and a niche market (compared to most places)

I did a deal not long ago around this price bracket for $121,000 that earns me $72.30 a week after all expenses even a PandI loan (including everything) I would much prefer my deal than this one.

But its your choice.

Kind regards

Jaxon Avery

Id like to say the people who win are the ones who hold seminars and most people who succeed are not the ones in the crowds.

So I had time and wanted to show you an actual E.g. based on whats on the market and why I have value over that deal

https://www.realestate.com.au/property-house-qld-redbank+plains-125216290
Get this for 250k, rents for 325 a week

https://www.realestate.com.au/property-house-vic-drouin-125842170
get this for 270k, rents for $320+ a week

thats already 520k for $625-$640 a week.
now lets say you add a higher risk property to make it
640k, thats an extra 240 a week which makes it

640k for $870 a week = 7% return, also this would give you a good spread for brisbane growth, east melb growth with AMAZON and a smart property.

Now in saying this, this is still a fairly avarage and crappy deal. I did that very quickly and you got to understand a 1% difference per year on 500k is $5000, thats massive when you think about how that sets your portfolio up. I think I can offer something you just wont find, far better than the above deals that I did in a heartbeat.

Kind regards

Jaxon Avery

Mate I would have my own advice and offers, but if you where happy to pay 1 or 2% on 500k, its only $10,000k through Binvest and fairly sure they have a really high level of success and help their clients get multiple properties in short time, all under market value and think all with positive or netural cash flow.

But in regards to having a chat about exactly what your after I have a fair amount of experience and am a qualifed RE Agent (buyer and selling agent), Mortgage broker and Financial Planner, Happy to have a chat and answer any questions or work something out if that is what you wanted.

0431376130 – Jaxon

Kind regards

Jaxon Avery

Well if it dosnt make sense for your specific situation clearly don’t go ahead.

Kind regards

Jaxon Avery