Good investment??

Hi william

yes that deal is pretty good

But obviously it depends on the overall condition of the property, does it need restumping etc and a new roof. even if it needs work doesn’t mean its a bad deal as long as you have the capital to do it and it will add more value than what it costs.
And finally it depends where the property is, it’s not a good deal if there are vacant houses all over town.
another thought, check out- if the property was to become vacant what rental would you get. occasionally you find properties that are returning more than the market it wouldn’t be a good deal if the next rental was only 100pw.
all the best
westan

Sounds like a good deal. A couple of comments in addition to what else has been said.
One thing I have found is that you should be able to get a reasonable handle on vacancy rates from a variety of sources, which is pretty important for determining whether you will have a stable cash flow from the property.

It is also handy looking at the kind of people that live around where this property is. By way of example, a few of my places are in regional centres where there is a high transient population which should translate into a healthy rental market for you (people are content to rent rather than buy).

Best of luck.