quote:

---

Hi again redwing. The loan repayments on $270000 is $15,900/yr or $305pw. So there goes any profit. Add that to those management costs and it becomes a -ve geared property. Here’s the figures:

Purchase price 270000

Initial cash spent to aquire prop
Deposit 0
Closing costs 13500

loan
Principal 256500
Type Interest only
Term 30
Interest rate 6.20%
Weekly repay $305.83

Annual cash flow received
Rent per week 420
weeks 50 (assuming 2 weeks no tenant)
Total cashflow received $21,000.00

Annual cashflow spent
Loan repay 15,903.00
Management costs 6,000
Shire Rates and Water Rates 0
Insurance 200
Repairs Maintenance 4,160

Total cash outflow $26,263.00

Annual cashflow position
Total cashflow in $21,000.00
Total cashflow out $26,263.00

Annual net cashflow -$5,263.00
Weekly net cashflow -$101.21

Cash on cash return
Annual net cashflow -5,263.00
Initial cash needed 13,500.00
cash on cash return -38.99%

As I said you can get that kind of deal anywhere without buying into a holiday unit situation. If you want the spreadsheet I use to calculate those figures let me know and I will email it to you. Some kind forumite sent it to me a while ago and I’ve found it invaluable.

Regards,
Karan.

---

.
Hi Karan,
I’m new to this site and property investing and would love your spreadsheet.
Regards
Rebecca.
[email protected]
fanx