11sec solution

Hi Karen,

The formula is simple…

Take your weekly rental, divide by 2, times 1000

So, for example, if I was looking at a prospective property that rented for $150 per week, and they were asking $90,000 for it, I could quickly check to see if they were in the ballpark of what I needed to buy it for to be +vely geared (cashflow) –

Here the formula would give me an answer of $75,000 would be around the max I would pay to investigate it further. If they want 90k and are not “motivated” to sell (ie. possibly willing to come down in price), then I wouldn’t waste my time on persuing the deal, as it doesn’t fit my parameters.

Note, it is ONLY a guide and there can be many variables in the deal which would make the 90k house attractive to you as an investor, depending on your investment niche…11 sec solution is just a way of sorting the wheat from the chaff quicky, esp when looking at many deals…

Hope that helps…

Kindest Regards
Jason S
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