i am just in the process of re reading the book 0 – 130 properties in 3.5 yrs and there was a lot i missed 1st time and i am tagging pages so ican find things quick . this might help you remember
lizzy

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Can you please outline the fundamental principles of this rule. Just the quick evaluation you put onto a property to evaluate viability.…[Read more]

yes i agree with you i would like to see the 11 sec rule put into action and given some examples as if they just fit the 11 sec rule it seems to be negative gearing!
lizzy

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Hi Lizzy1
looking over your figures you have left out management fees on the rent. I also find that the 11sec rule doesnt always give you a cashflow +ve place. Maybe…

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the property sold for 111k, so we missed out!

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Lizzy

From your outgoings mentioned versus rent, there is still a surplus of close to $1000 per year. Even if you borrowed the $11.5K for renovations, I would have thought that the rent would cover it?

If it is a growing area as you say, and the property will cover itself, and grows enough for…

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hi mel
how i worked out the figures was
purchase price 90k
deposit 10% 9k
closing costs 3,550k
initial cash needed
12,550
our loan 81k
p & i loan
25 yrs at 6.5%
weekly repayment $126.14
annual cashflow out would be
loan 6,559.28c
rates 1,200
insurance 200
repairs budget 468
total cash out $8427.28

quote:
total cashflow…

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hi mel
how i worked out the figures was
purchase price 90k
deposit 10% 9k
closing costs 3,550k
initial cash needed
12,550
our loan 81k
p & i loan
25 yrs at 6.5%
weekly repayment $126.14
annual cashflow out would be
loan 6,559.28c
rates 1,200
insurance 200
repairs budget 468
total cash out $8427.28

quote:
total cashflow…

[Read more]

hi di,
this sounds good to me 2. have you checked out all costs of doing it up and rental in the area.
i have heard that it is better to buy the worst house in the best street for capital growth, maybe a wrap is also an option but it sounds good though