some advise

Hi tossa,

Well it appears to meet the 11 second solution, however, remember that any property that meets your quick calculation solutions is simply a starting point. What this tells you is that this property has the potential to be a cash flow positive investment, NOT that it a good investment and to go ahead with it.

Now that you have this starting point you need to find out much more about the property and the locality.
Find out what rents well in the area, does this property have the same attributes ?
How long have the other renters been sitting in the market ? You may find that you need to fatcor in that the property may only rent for 40 out of the 52 weeks in a year.
What is the quality of those other rentals available? similar.
What is the primary reasons for the town existing ? is it a rural town that is sustained by 1 industry, that has the potential to suffer in a downturn?
Can you do something to the property to give it the upper hand over the other rental properties there ?
The list goes on…

After doing you homework, the place will either get 1) the thumbs down ,2) thumbs up, or 3) you will still not be sure, but you think it has potential.
3) simply means do a little more homework and decide, or negotiate down to make it more attractive to you.

I’ve never been in the right place at the right time to snap up the CP+ properties as I’m pretty much time poor. But I buy the ones with the potential, to make a captial gain and/or reach the cp+ status within a reasonable time period. Simply put, don’t ever let the the fact that a property does or does not meet the 11 second solution decide on whether a property is a good investment. It’s simply a staring point. Your personal situation will decide whether you can wait a little longer for a property to start making you a positive cash flow return.

Good luck.

Mal

Getting out of your comfort zone, can help you become comfortable