Have just read about Steve’s 11 second ‘quick evaluation’ to work out if a property might suit a positive cash flow investment strategy.
However, when I do the sums for almost any property I can think of, they just don’t add up. Take my own modest 3 bed house, average block, 20k from Melbourne CBD – think I would be OK renting it for around $250 per week, which would then make it a good buy for an investor — at around $125,000 (Taking the weekly rent, divide by 2, then multiply by 1,000)
Trouble is, that’s half what I would expect a low offer on the house to be right now.
Can someone please explain where these properties are that can produce positive cash flow ???
Times change!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonSorry deejay12, couldn’t resist!
Basically, when Steve wrote the book it was in an upward market, so prices weren’t high but the rents were, comparatively. Positive cashflow IPs are still available, although you have to look a little harder now and the rule would not be as applicable now as it was then.
Now, the market is steady or in a down turn, over east, and it is certainly no longer relevant (too harsh). Don’t loose sight of the other information and training that is in that book! It will help you far more than the 11 second rule ever would have!
Welcome to the forum – I hope you stick around and learn from all of the posters here. Your journey has but begun, Grasshopper!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonOriginally posted by deejay12:Have just read about Steve’s 11 second ‘quick evaluation’ to work out if a property might suit a positive cash flow investment strategy.
However, when I do the sums for almost any property I can think of, they just don’t add up. Take my own modest 3 bed house, average block, 20k from Melbourne CBD – think I would be OK renting it for around $250 per week, which would then make it a good buy for an investor — at around $125,000 (Taking the weekly rent, divide by 2, then multiply by 1,000)
Trouble is, that’s half what I would expect a low offer on the house to be right now.
Can someone please explain where these properties are that can produce positive cash flow ???
[biggrin]
Originally posted by deejay12:Have just read about Steve’s 11 second ‘quick evaluation’ to work out if a property might suit a positive cash flow investment strategy.
However, when I do the sums for almost any property I can think of, they just don’t add up. Take my own modest 3 bed house, average block, 20k from Melbourne CBD – think I would be OK renting it for around $250 per week, which would then make it a good buy for an investor — at around $125,000 (Taking the weekly rent, divide by 2, then multiply by 1,000)
Trouble is, that’s half what I would expect a low offer on the house to be right now.
Can someone please explain where these properties are that can produce positive cash flow ???
Originally posted by Docbue:Originally posted by deejay12:Have just read about Steve’s 11 second ‘quick evaluation’ to work out if a property might suit a positive cash flow investment strategy.
However, when I do the sums for almost any property I can think of, they just don’t add up. Take my own modest 3 bed house, average block, 20k from Melbourne CBD – think I would be OK renting it for around $250 per week, which would then make it a good buy for an investor — at around $125,000 (Taking the weekly rent, divide by 2, then multiply by 1,000)
Trouble is, that’s half what I would expect a low offer on the house to be right now.
Can someone please explain where these properties are that can produce positive cash flow ???
Consider out of state. It still doesn’t fit the divide by 2 x by 1000 of the book BUT a $480,000
I just bought makes $750 a week. Just bought a $565,000 house making $900 a week. Karratha
a mining town in WA. Great potential, booming with oil and gas. Certian units in Kalgoorlie pencil out real well. Bought a 4plx for $490,000 two weeks ago $800 week rent. A beautiful townhouse $290,000 gross rent $400 week. I also do interest only loans for three years to give a property a chance to produce more rent or I then sell. Hope it helps,[biggrin] DocHello Docbue,
I am interested to ask you,
Does it concern you having so much debt on one particular property?
What if you have a couple of propertys vacant at once?
The 565K and a 480K props you are mentioning are individual houses?Dematio
We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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