I just did a correction of the summary from the last person who wrote, and it is in fact a better return than what he makes out. Perhaps this is why some people have trouble finding a good cashflow property.

The asking price is 120-130 k, but who’s to say they won’t accept 115?
Gst would not be applicable if the purchaser got himself registered for gst and acquired it as an ongoing concern.
Therefore the total purchase price would in real terms be $120,750
(115 + 5% closing costs)

The rent for this property is at $10,345

The costs are as follows;
Interest from your loan at 7.5% would be $6037 (assuming a 70% loan)
Plus bank fees $200

Therefore if you work it out 10,345 – 6037 – 200 = $4108 POSITIVE CASHFLOW EACH YEAR

Now considering the cash required for this property is $40,250 (30% plus closing costs)
You would be getting a 10.2% CASH ON CASH RETURN.
This is certainly better than having your money dwindling in the bank, especially when the tenant is a secure one