Here it is -Positive CF Property 8km from Brisbane

You read on these forums quite often people asking where to find positive cashflow properties. If you are out looking all the time you find can them.

Here it is a positive cashflow property laid on the table for you.

PS. I am not a real estate, not a buyers agent , and not looking for a finders fee.

But here’s one – on the weekend my husband and I went to an open house of a positive geared property in Moorooka, Qld. We are not in a position to be buying right at this point, but we are always out looking.

It is a unique place (as in there are no other +CF properties in moorooka). This one is a boarding house, with 5brms on beaudesert rd.

All the following info was recieved direct from the real estate agent and I haven’t done any due diligence or investigated further – as it is not quite what we are after. So take the info on face value.

The house is a registered boarding house, which means that it is rented by the room to low income or pensioners. Their rent money is deducted straight from their centerline payments into your account (so no worries on a person not paying the rent). There is a 100% occupancy. People waiting to get into these properties.

The house itself. Condition is poor cosmically, but from one inspection only the structure looks sound. Inside – Holes in walls, needs painting. But the agent will tell you the going rate for a room is $120 whether the house is in good condition or bad. So why spent a cent on it when it won’t increase your return. The kitchen is basic. Bathroom ugly and old (and from underneath has leaked at some point). There is beautiful hardwood floors (as seen from underneath) but they are all covered with tiles. There has been some water damage at back door. A window is falling off. Each tenant has a fridge in their rooms. All rooms are locked individually. Laundry is under the house.

There is old furntiure in the house which comes with the sale.

Asking price is $350K. (was $420K for a few months, and has just been reduced). The rent recieved is $600 a week.

The guy who owns it now has 7 boarding houses. He is apparently old (77) and it’s all getting too much from him. He does all the renting himself and there no agents comission/fees.

Here is the link on realestate.com.
And no this isn’t how we found the property – we get out there and drive around the streets and ring up any properties that look interesting.

http://www.realestate.com.au/cgi-bin/rsearch?a=o&s=qld&cc=&c=17568138&tm=1146518495&id=103077773&f=0&p=10&t=res&ty=&snf=rbs&ag=&cu=fn-rea&fmt=&header=

I am not recommending or unrecommending this property. You would need to do your own DD, and check out what is involved with a boarding house, the registrations etc.

Check out this website for a bit od info:
http://www.housing.qld.gov.au/programs/ch/support/boarding.htm

I also found out whether you can take any property and turn it into a boarding house. There are rules and regulation, and in particular about the location. It has to be close to transport (this one has bus right at door), close to shops and not in a quite residental area. This one is on a huge major road.

For those not in Qld, the property is in Brisbane city council.

Hope someone finds this a good deal and sits back to enjoy the income. Then maybe you’ll owe me a bottle of rum!

Good luck.
Lisa