Arty,
Ive just tied up my first deal.
2 houses on the one block devided into 4 flats in rural NSW.
cost $175k current return $390 /wk . the condition of both houses is pretty good with reno costs of less then $5k. Was previously in the one family since built and well looked after.
I use the net to identify areas with good potential then get in the car and drive. I try to target agents that dont have an internet listing in these areas. Have identified a number of areas within about 5 hours drive from home so far.
This property i found when sent bush for work and window shopping as i went about the job.

Good luck with the other half..( mine looked at me blankly and said… does that mean i can buy my camera now…)
Cheers
Steve

I live in Lake Macquarie and work between the Central Coast and Cessnock and tend to “window shop” and chat in real estate offices during the day… . The market on the Central Coast in all areas is very hot the prviously “affordable” northern end has gone crazy with Sydney escapees.There is very little chance you will find a cash flow positive property here… the west side of lake Macqurie is a little better about 20k cheaper for the same quality of property but still rentals havnt kept up with property values Positive cash flow would be hard to find… even Cessnock has experienced double digit capital growth for the last couple of years pushing the figures well out of wack if you are after positive cash flow…
I had a call from an agent ive been working with today offering me a great deal in Toronto 4 bed house on large block for 250k.. and would get $280 /week rent…. i declined.
As to the idea that you can offer 10% lower then the asking price… the house next door to me went on the market sat 9am.. for 270k… sold within 2 hours for 269k…. hope i like the new neighbours…