Hi All,
I have been extremely keen on Real Estate Investing for a number of years. I have spent countless hours reading books, and investigating everything to do with the topic.
Recently I have spent quite a bit of time researching and becoming an expert in my surrounding areas (in Adelaide). I have found an excellent deal located in Salisbury, SA. A chance to buy 1-4 units in an apartment block that are returning around 7-9%. This is before any cosmetic renovations are undertaken. All four units are currently leased (2 on fixed leases and 2 on periodic). Units of this standard in the area are selling approx 10-20% higher than this one is listed for and you have the opportunity to negotiate the price down if you are buying all 4 in bulk.
All units are 2 bedrooms (3 on the first level, and one on the ground level). They are open plan and in reasonable condition – once updated the rent could be increased by 10-20%.
This deal looks the goods. I am currently doing a bit more research to find out some more about the deal to make sure all the numbers stack up!
If I had the equity available I would be snapping up all 4 units right away! Unfortunately I do not, so am interested in hearing from someone who would be interested in a joint venture and providing the deposit. Alternatively, I am happy to act as a spotter to help someone else secure this deal.
Let me know if anyone is interested – I will do some more research and report back a little later on!
Cheers,
Matt.
Hi Matt
I think that there are about 60 units in this block. I am reasonably familiar with Adelaide and I would expect that a block of flats that large in that area would be a bit of a slum. The figures may stack up but I think you should also be looking at not only the quality of the tenants you will get, but also the quality of the other tenants in the block.
If you haven't already, I suggest that you go and inspect the units and have a talk to some of the people who live there. Also go and check it out at night to see what the nightlife is like there.
Cheers
K
You must be logged in to reply to this topic. If you don't have an account, you can register here.
