value adding/higher return

Viewing 5 posts - 1 through 5 (of 5 total)

benderfile
Participant
@benderfile
Join Date: 2005
Post Count: 42
January 14, 2006 - 5:18 am
hi all,
just wanted to run something by y’all to get some feedback –
i have an IP on the north coast currently returning 6.2%
after reading dolf de roos and steve mcnights “1,000000 in …..”
i have decided that the run down ‘garages at the back could be replaced with new ones and rented out individually to boost my return to 8.4%.
(the return on the cost building them would be about 20-24%)
Bonuses –
1. the shed requires only a 25% dep with 2yrs int free/no penalties ( boosting the return & partially self funding
2. the added equity
3. pushes the property from neg gear to neutral/pos
4. i may get a deal on a carport if included which again boosts return (by $10 pw plus value of IP and equity
cashflow would be much improved and i have the money to go ahead. Of course due diligence will be applied and we need to meet the council regs
does anyone with experience in things like this have some feedback?
cheerz[mellow]
wealth4life.com
Member
@wealth4life.com
Join Date: 2003
Post Count: 1,248
January 14, 2006 - 5:34 am
Experience doesn’t matter in my opinion but the numbers (roi) do.
Sounds like you have done your home work and have applied some laterial thought based on your reading and market research.
Great job in my opinion good luck and if you proceed please give us an update on the project.
resiwealth
jjaaus
Member
@jjaaus
Join Date: 2006
Post Count: 49
January 14, 2006 - 7:35 am
is there demand for rental of the garages?
Jeff Aquilina
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benderfile
Participant
@benderfile
Join Date: 2005
Post Count: 42
January 14, 2006 - 10:17 am
thanks for the responses,
(i had to duck out to trade my time for money.
yes jjaaus there does seem to be demand as it is in a convenient location, you virtually pass it as you enter or leave town (not a big town) Also it is behind the local (very busy) holden dealer, and i will be approaching them next week to see if they would lie to take a head lease on them. i could have a tenant waiting.
yes i will keep you informed i have some due diligence to follow up first.
big cheers
‘problem+solution=profit’
cashflow/cashflow/cashflow
[biggrin]
jjaaus
Member
@jjaaus
Join Date: 2006
Post Count: 49
January 14, 2006 - 11:46 am
well done benderfile good diversity and outside the square thinking good luck cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members