Quick calculation , and thanks for asking to check the figures, because it give me chance to check the figures over.

Can you get the price down a bit, now i did one lots of numbers on your numbers. you know some things vary a bit in the end result, but i got around what you got.

Now for the second one i factored in a lower mainenance rate of about 4%. And did it based on if you could get a few grand off the price of the house.

Based on if you could get property price down a bit and a lower maintenance and too maybee manage it yourself. the figures didn’t come out a whole lot better. though i gave it the thumbs up for this one because around $26 a week in your pocket each week is not bad. I rekon if there’s a will there’s a way with this one. Though it only just scraps in[]!

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This seems to be about demographic arrangements.

That’s right you have got to be critical! Higher deposits and you will end up losing money. I don’t see iether of these being attractive. Although one makes $34.54 extra cash a week, the deposit is 50%. rather then the only numbers chaging in the first one is 20% deposit.

Property bought on these figures at 20% deposit.

Same property, all the same figures except changing the deposit to 50%.

After experimenting with these numbers. Nothing changed the cash on cash return much more then having a less deposit.

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This seems to be about demographic arrangements.

Based on your numbers. I converted it to the way i do it based on the BuyerBeware template. And the results show that i think you got the numbers right.

I regard this as DEAD, because your not loosing money or making cashflow money, well not mutch $2.75 a week. but that’s if things run perfect. There has been no consideration for any rent vacancy thru the year(s).

I am only just learning about wrap strategies in another thread. This can bunt your cashflow up a little to make it worthwhile.

Alternatively you can put your creative cap on and think of ways so that you get the rent that would make it worthwhile in a CF+ senario. Maybee you can furnish for minimal amount and get the rent up to $110 (maybee after a year or when the current tenant moves out).

11 Second Solution:
Rent = 100
Occupancy rate = 100%
Solution = $50000.00
Asking price = $45000.00
Deposit 20% = $9000.00
Other closing costs = $2850.00

Morgage details:
Loan = $36000.00
Interest rate = 8%
Term = 25 Years
Weekly loan repayments = $64.12
Total repayments for life of loan = $83355.00

Summary:
Total annual rent = $5200.00
Total annual morgage = $3334.37
Total annual costs = $1748.00
Total annual cashflow = $117.63
Total funded costs = $11850.00
Risk free return = $474.00 bank interest rate of 4%.
Annual Cash On Cash Return = 0.99 %
Cashflow Positive Weekly = $2.26

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This seems to be about demographic arrangements.

Lawrence, good on you for persuing this!!!

I live in a rural town of about 400 down in greener Victoria, where it’s not so mutch of a droubt and understand about these people and the things you’ve been trying to say and explain.

Don’t worry i’ve been quit surpized for ages about what the city fold think of ‘us’ , ‘it’ in rural life[].

As Steve Mcnight says, “There’s good people willing to rent everywhere”. But his niche was larger metro towns. And why wouldn’t it be! He’s from a metro town i beleive and lived most his life in larger towns, don’t quote me on this but i think that’s Melbourne.

I have two minds open, one to invest in rural towns and one option open to invest in larger metro towns. If i can get anything out of my father , i will sit down and ask him one day to go back over and tell me what tenants have done in this town and how long they rented for, you know etc. He’s been here all his life, his parents all his there life. And l’ve been here all my life, accept went to a few metro towns for a few years. But i’m back home now.

I’ve got a lot more thought, but that will do, better go for now.

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This seems to be about demographic arrangements.

No change again.

This seems to be about demographic arrangements.

Where is the block? If it’s in town, i cant really think of ways.

For instance i’m looking for a block for storage of a houseboat but it must be near the Murray River or not too far from it and away from where theives might target it. I would easily pay $50 a month to rent it. Maybee something like this might work in your area?

If it’s outta town and there is a good fence around it, can it be aggisted to run, a horse on it, a cow a couple of sheep? Though i tempary electrical fence is not hard to put up.

No