Hi,
Ill give you a short run down so that you may be able to give me some advice. I dont need answers as i am up for the challenge, i would just enjoy some opinions of where you think i should head.
Age: 24
location: Newcastle, NSW
Job: Project Engineer (B)Con Mgmt(Bldg)
Status: Live at home
Deposit for investment: $25,000
Outgoings: $600/month (vehicle)
Loan pre-approval: $150,000 (90% borrow due to no savings history)Based on the above figures i was considering purcahsing two $75,000 +CF properties to mitigate the risk of not having a tenant. I figured that having the loan over two properties, would enable me to reduce my risk as there is a greater chance that atleast one of the properties will always be rented and hopefully both. rather than having all of my eggs in one basket.
I based my calculations on $150 return on each house with $100 interest only loan on each house to provide a total $100 or $50 per house return.
These figures are only estimates and after reading steves book, i am thinking that i should look for problems to create solutions and then provide cashflow. I really just need a little step in between so that i can delve into it all. I want to find a problem to solve.
The only reason i limited myself to the initial scenario of two 75k houses, is because i am financially restricted to this option at the moment.
I was going to use hunter house hunters or positively sold to select my first deals, as this is worked into my $25,000 deposit, if i can find my own deals then i reduce my costs and increase my spending capacity, but i wonder if spending the money will reduce my risk of buying a lemon?
Any help would be greatly appreciated!
Regards,
Tom.
Look for property yourself just do the home work.Talk to as many people as possible were you want to buy. Were you live seems to be some good cash flow property . you will probably find the best deals in your own area as it is easy to see what is going on aroud you all the time.Cheers Rick
Hi,
I’d say you had the basics pretty much figured out.
In time you’ll need a reason to invest, but for the moment all you need is a deal to get your teeth stuck into.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Steve,
Thanks for the response, i agree that i need something to cut my teeth on. I guess i can move on from that point and work on my weaknesses. My biggest step is to break the compfort zone and just get out there with the possibility that my first investment property might not be the ultimate investment that i would like, i guess there will be heaps of deals down the line.
What is your opinion on using a hunter to find a deal for me?
Rick,
im not sure if you are from Newcastle, however it is very very difficult to find anything within $200 month of being +CF due to very poor rental return over property price, especially in the lower price bracket that i am targeting. I am pretty sure the only places that i will be able to purchase a +CF property will be in rural areas.
If you know of any areas close to me that provide close to +CF investment opportunities i would love a little tip
I have researched extensively and even the cheapest deals with a small renovation job would still be fairly negative for short-mid term.
TG.
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