Saturday – 3 BR rented to three girls, a room each @ 70,
self-contained bungalow out the back could rent for 70 agent says.
I recon it would easy rent for 80-90 got a shower oven, everything.
House would rent for in the range of 180-200 on it’s own. Though for now possibly ask the girls for 5$ extra per week so that would be 3×75=225.Large regional town pop 30,000 plus, average general area of town nothing wrong with it. Median house prices in the area are at around 200k I estimate the true value of this property would be about 160k so equity straight up.
10% return on the low side 14% return on 100% renting at 280 week.
Some value adding improvements as well could be done and rent increased a tad more.
The bid was past in as a Vendor bid at 130k and a fella negotiated and signed a contract for 135k.
.
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Learn about a current 91 Unit development near Sydney International Airport and there all Positive Cash Flow, 43M resale values, 25/06/2006.Hi Jaffasoft,
Sounds good
When you said 10% and 14% returns, do you consider the cash return only or do you also include the capital gains in that calculation.
Thanks!
Jeremy
It is good! And I’m happy about it because I get happy about it when I find one.
“This is a Modern Day Era Positive Cashflow Property Investors Dream.”
This web site does not let you put photo’s up so I have put photo’s up in my web site of the house and inside as well. I also put a bit of text in their having a go a people for not networking to take opportunities like this!
This is the numbers and this is for using PI loan @ 7.5%. And not taking into consideration what can be done to both add value in the form of equity but also the rent increases that can be made not to mention the extra bit of cash in rent increase from some improvements to the Bungalow. The fella that bought this got 25 grand in equity straight up!!
Rent = 280
Occupancy rate = 100%
Solution = $140000.00
Asking price = $135000Closing costs:
Deposit 20 % = $27000.00
Legal fees = $800
Stamp duty = $3760.00
Mortgage app fees = $475
Mortgage insurance = $0
Valuation fees = $0
Other borrowing costs = $400
Clean up costs = $0
Inspection costs = $300
Other costs = $0
Total closing costs = $32735.00Mortgage details:
Loan P&I = $108000.00
Interest rate = 7.5%
Term = 30 Years
Weekly mortgage repayments = $174.27
Total repayments for life of loan = $271854.00Annual costs:
Management fees 0 % = $0.00
Letting & advertising = $0
Body corp fees = $0
Rates = $800
Utility rates & fees = $0
Insurance = $350
Miscalanious costs = $0
Land tax = $300
Maintenance 5 % = $728.00
Other ownership costs = $0
Total annual costs = $2178.00Summary:
Total annual rent = $14560.00
Total annual mortgage = $9061.80
Total annual costs = $2178.00
Total annual cashflow = $3320.20
Total funded costs = $32735.00
Risk free return = $1309.40 bank interest rate of 4%.
Annual Cash On Cash Return = 10.14 %
Cashflow Positive Weekly = $63.85.
Variety of free comprehensive property analysis calculators and feasability programs.
Developers Renovators Spreadsheets Positive Cashflow Home Owners
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Learn about a current 91 Unit development near Sydney International Airport and there all Positive Cash Flow, 43M resale values, 25/06/2006.So U bought the property Jaffasoft?
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
No, I did not buy it but I wish I could. I just drove over to have a look at the auction just to keep myself active in the market. It was a fella (couple) their that ended up buying it after the auction I don’t know them.
He seemed to be the only person that was genuinely looking to buy something all the others appeared to be members of the family gathered around to build numbers up in the auction. But there were only about 8 there. Not a bid made and property was past in ten minutes.
Vendor was some eight thousand in arrears on the council rate payments and as the agent put it, “In dyer straights financially”. The vendors brother in law was their and I heard him say, “The vendor just owes all this money and has just %4&cked off and well take 100 to 140 for it”. Was only on the market for the four weeks advertised until it auctioned.
Would you buy a property like this World Changer and what are your thoughts on this transaction and others?
I was running share houses with similar pos. cashflow figures as you’ve posted here Jaffasoft.
I am now just running straight rentals at neutral gearing.
Too much extra work and risk with not enough extra yield for me personally.
3 -4 times as many tenants, 3-4 times as many vacancies and 3-4 times as many problems.
Cashflow pos. properties at the expense of extra risk and work no longer impress me.cheers
Live, Learn and GrowLifexperience
Hi Jaffasot,
Thanks for taking the time to show us how you went about putting the numbers together. Appreciate it
Just a few questions thought.
– Do you have to consider property management fees in the calculation? Do you just assume that since the property is already tenanted you will not require a property manager in this instance?– When considering property managers, do I have to take into account their letting and re-letting fees (if applicable), which are around 1 week’s rent, in the cash flow calculation.
– I noticed that you asumed that no quantity surveyor looked at the property. I guess a property like this would be too old for any significant depreciation benefits huh.
Thanks
>>Do you have to consider property management fees in the calculation? Do you just assume that since the property is already tenanted you will not require a property manager in this instance?<<
I kind of did really, but I calculated it for if I purchased it, then I would project manage it myself which means I would also line up a tenant. So if you we’re to get it done by a property manager you would simply add that 7% of total rent in.>>- When considering property managers, do I have to take into account their letting and re-letting fees (if applicable), which are around 1 week’s rent, in the cash flow calculation.<<
I generally don’t or if there is any ask the agent to include any costs into the 7% they are getting. Negotiate it or go somewhere that will do it! Even see if you can get it for 6% everything is negotiable. Remember that property could have its rent bought up so this could cover if you have a property manager. It’s not bad +CF anyway.
>>- I noticed that you assumed that no quantity surveyor looked at the property. I guess a property like this would be too old for any significant depreciation benefits huh.<<
Not sure about this perhaps I should have included it. See the depreciator about that. Though can get a no obligation free inquiry! Interested to see what you can find out as may be able to save a few dollars thier. This is something I would do after purchase!I didn’t consider this as a share house, though on the face of it it may seem that it is. I think it’s just the situation that it is in atm I would look to getting it back to just renting a normal house because the place and the area would suit a working couple and with family.
Can anyone rack their brains and offer creative suggestions on how I could have purchased this property?
Just picked up on this thread now Jaffasoft!
How is the property going now, and what has been the history.
I'm interested to know the longer term procesesDavid
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