Answers to “Where to Find CF+ Deals”

Nenal, it would come pretty close to being neutral – ie Purchase = $105+6k costs, Loan = $81k: approx $7k interest, Body Corp $3k (council $????) vs rent $9k. Loss would be about $20pw, less with a really good interest rate or a little more capital.

Hi all.

I'm a baby of the Ipswich boom few years ago……..are people still finding little nuggets of cf+ gold in the regional centres…..surely the mining boom has washed some of the gloss off as well?

http://therainmaker.net.au
Small Stock Investing

I think this discussion is very interesting, my 2 cents is;

-there are plenty of investors out there these days and re.com etc are flooded with more experienced and inexperienced people looking for the deals, as others have stated a freebie +ive CF property wont pop up and if it does it will be gone in literally minutes.
-as others have said +ive CF properties can be created from just about anything, alternatively consider that in good location prices will double in 10yrs maybe sooner i.e. rental yield should also depending upon economic conditions, so if you did nothing with the property it will still become +ive CF but this will be an opportunity cost as you could have value added somehow, and moved onto your next property.
-too many people want an easy path and thats why they read books like steves as it looks like a get rich quick scheme, the truth is as many know that its not and it takes a lot of work. When you find something that works well for you repeat it and continually improve on your strategy.
-the best thing to do is make a start and from there the education begins.
-as i am sure many of you know, great things dont come from doing things the same as other, Warren Buffet once said "you know its time to consider your investing when you are getting tips from the local bellhop", the same great man buys when the market is doom and gloom and is conservative when the market is going well.

-our real estate market at the moment is doom and gloom =0) apparently

Ok I'll bite! Where abouts are they?

I've read thru this whole thread and since it was started back in 2003 most of the info is a bit out dated but I dare say the principles are still the same.
I've been looking for CF+ IP but where to start? Trolling thru RE.com.au and Domain.com.au and there are just too many properties for sale in too many locations around Australia.
Rather than try and find a needle in a haystack, I thought it best to pick a couple of regions or towns and just stick to them. I'm in no hurry to buy so biding my time until the right property comes along is fine.

So….How should I go about picking a few areas to look at? I don't have a budget as such, but would like to start small..<$200k.

I live in Sydney and doubt I can find anything that would come close to CF+ in that price range so any state would be fine.
The 3 areas I have been looking at is NE TAS ( Launceston/Davenport/Burnie), N QLD coast and Adelaide +surrounding areas.
Am I on the right track with these areas? I still think this is too large an area to find my 'needle' so I would like to narrow it down further. What criteria should I have for an area? or what criteria do you have for picking an area to invest? and where do I find the information to base my decision?

I have no problem with renovating a property to increase rent, in fact I'd probably prefer it.
I don't mind commercial property but I think it's a bit too much to start off with $ wise.

Hope thats not too many questions.
Cheers

Thanks Jeff, I found that thread but am still none the wiser.
There's some good info you posted on Ingham other than that there's no real hints on ow to pick an area or what to look for.
I posted in that thread regarding interpreting RP Data.

Thanks again

ditto, except I add the lower bowen basin in QLD. Deffinitely +ve cashflow from day 1 with potential to improve with a cosmetic reno. Prices have not yet reached those of the upper Bowen basin and rents are onthe increase as the new mine goes ahead

Mick

hello all what do you think about this site http://www.cashflowcapital.com.au/.it

We ourselves never looked for cash flow positive properties. We started out by seeing how we could add value to a property so we could increase the cash flow and create our own equity.

We began with renovations but now concentrate on real estate development because we found the financial gains were far greater.

However with larger profits there are usually bigger risks involved. If you know what you’re doing and seek professional advice, Real Estate Development can be a fantastic opportunity to increase your cash flow and fast track your wealth creation.

Some of the benefits of real estate development for us included:

-the potentially bigger profits allowed us to build a larger property portfolio a whole lot quicker

-by acquiring our properties at wholesale we saved on costs like stamp duty, legal fees, agents commissions and advertising

-we had more flexibility because we had the option to either hold stock as long-term investments or the ability to sell for quick profits if we chose to

-we could create our own capital growth and not have to rely on property cycles, in fact, with care, property downturns and flat markets created some of our best opportunities

-we would receive higher rental yields because we acquired property at wholesale prices

-we had the ability to borrow and leverage more because of the higher valuation of our portfolio

-as an added bonus we could receive some amazing depreciation and tax benefits from owning new property; and

Adrian and Amber
http://www.RealEstateDevelopmentClub.com

getting a finer toothed comb huh?? that's one way to do it. it's hard but when you find what you're looking for, it will be worth all the trouble!

hi sarah, i got the terry ryder hotspotting a few montha ago and he's saying epping, if u want to email me [email protected]    i will send the report to you.  don'tr worry about the beer, coffees good. also if you want to pick my brains or possible j.vs we can chat. 

thanks and keep researching.
wayne