Hi Terry

Looks complicated.  I will investigate the options strategy.   

Hi Craig
Yes, not sufficient.  I think I need help with the sums.
I'm seeing if we can convert our current ppor into an investment.
However, I think it would be better to reno and sell to unlock the $90,000.

The problem trying to calculate the cocr is with the deposit and closing costs. Because it was ppor we put the $90000 into it, so I've used this amount in the following: (happy to be corrected)

Cash down:
deposit and closing costs = $90,000

Cash back:
annual rent = $18720
– loan repayments ($24500 mortgage) = $12740 (current interest rate 5.2%)
-management fees (7.7%) = $1441
-rates, insurance etc = $2500
total cash back = $2039

Cocr
Cash back: $2039
divided by cash down: $90,000
= 2.26%  (different answer again!!!!!)

I can see that $90,000 down with a small return is not a smart investment choice.

Hmmmm… I'm not sure about that one. However, I am happy to be corrected with an explanation.
 

Hi Scott

Thanks for your reply.
I should have asked the question as follows:

We have a ppor that we want to turn into IP and lease.
We put $90,000 into it at price of $355,000.

I understand that COCR is as follows:
Cash back $809 divided by cash down $90,000 = .89%

So how do I translate .89% into a $ amount back per $ spent?
(as seen in Steve's 'From 0 to 260+ properties in 7 years' – pg248 – if you have it)