I am in the process of developing a CF+ deal. It is going to take 18 months, but it is worth the effort. I purchased a subdividable corner block in a country town in SA ( strong local economy and high employment ). The subdivision has just been approved and in the mean time I have ordered a three bedroom transportable home from Allsteel Adelaide. The house will be delivered on site in a couple of months time. I am taking some leave from work to complete landscaping / fencing / carport etc. The land and house, plus connection of services and finishing off will cost $110 000. The final value of the IP will be $135 000+. If rented will return $150 / week.  I am about to order a second transportable home for the other half of the block. Land costs are reduced to subdivision costs ( $13 000 )  This second house will be completed for around $100 000  ( $10 000 less due to not having land purchase costs ). This second house will also be valued at $135 000+. My idea is to keep the first property for 12 months and then sell it. I will transfer the profit from this property to the loan on the second property reducing the second  by $25 000. I will then have a loan on the second property of $75 000 with a rental income of $150 / week. You can work out the yield for yourself.
It sounds like a lot of work, but most of it is signing contracts. There really will only be about 6-8 weeks of hands on work in the whole project. I work full time and it is not hard to do.

Hi
I invest in a small country town and have done pretty well over the last 3-4 years. A few things that I do
– have someone in the town you know – for me it is my mother
– look at emplyment rates. there are country towns that are booming ( yes mining as well) and there are towns that are going backwards big time.
– check occupancy rates. if unsure contact an agent and see what rental properties are available. Some have plenty others have none. What does this tell you ?
– know the local economy – eg major employers
– read local papers
– visit the towns you have identified and talk to the locals !
-etc

As prices have increased ( and they do in country towns as well !) same % rise, but usually 6-12 months later than the cities, take a note of land prices. It could be ( as in my case ) that land prices have remained low in comparisson to increased house prices. I am in the process of having a transportable home built ( 3 bedroom steel frame for $75 000 & 25 000 for land ( which I am subdividing). Will rent for $150 / week. look at corner blocks as some councils will allow subdivision.
I am not quite so worried about +vely geard properties at the moment. i am hoping to increase my portfolio over the next 2-3 years in readiness for the next round of capital gain.
All the best

Interesting! I am just starting the same project in Bordertown. Bought land, subdividing and putting up 2 transportables. My aim is to sell, with rental as a 2nd option.

Why wouldn’t you sell and take the profit, giving yourself opportunities to continue investing?

all the best!