I am from a regional area at Tamworth. You can still buy 2 or 3 bedroom properties here for $150K to $200K. Consider all your options before jumping in.  It will take you years to become cash flow positive in the city.  Your increases in price in the city still have not landed in Regional NSW.

I was cash flow negative until my new strategy of fully furnishing the houses in 2012 to the present time.  So far of the 4 properties purchased 3 are cash flow positive.  My strategy is to fix the bathrooms and kitchens (if needed) paint, then fully furnish with single beds and rent to the 457 visa holders in the Tamworth area.  There are plenty of jobs that the local kids will not do, (abattoirs & baida), so there are plenty of these temporary visa holders in the city.   The tenants are great payers, on time every time. 

Since 2006 until 2011 and on a low income below $30k I have invested in 4 properties in this area, initially renting unfurnished and suffering from bad payers and damaged houses even with Real Estate Agents as managers.  I now have a new strategy, my returns are with the purchase prices $105K returning $700 P/W, $120K returning $700 P/W, and $185K returning $360 P/W.  They are all cash flow positive – the only one not cash flow positive with a purchase price of $160K returning $255P/W which still has to be renovated and fully furnished. 

I have retired from working at age 60 in January after only 2 years of this new strategy on a passive income of $104K.  I still use agents to manage the properties.

I am from a regional area at Tamworth. You can still buy 2 or 3 bedroom properties here for $150K to $200K.  I was cash flow  negative until my new strategy of fully furnishing the houses in 2012 to the present time.  So far of the 4 properties purchased 3 are cash flow positive.  My strategy is to fix the bathrooms and kitchens (if needed) then fully furnish with single beds and rent to the 457 visa holders in the Tamworth area.  There are plenty of jobs that the local kids will not do, so there are plenty of these temporary visa holders in the city.   The tenants are great payers, on time every time.  Since 2006 until 2011 and on a low income below $30k  I have invested in 4 properties in this area, initially renting unfurnished and suffering from bad payers and damaged houses.  With my new strategy my returns are with the purchase prices $105K returning $700 P/W, $120K returning $700 P/W, and $185K returning $360 P/W.  They are all cash flow positive – the only one not cash flow positive with a purchas price of $160K returning $255P/W which still has to be renovated and fully furnished.   I have retired from working at age 60 after only 2 years of this new strategy.