Cashflow positive property available – regional NSW

Late last week I revisited a block of units in regional NSW I saw that was listed for auction on the weekend. I rang the agent and tried to get an idea of a ballpark figure of what the reserve would be. She asked what price range I was looking at and I told her I was looking in the sub $300k range. She told me if I was interested I should organise to be on the phone tomorrow, because it would be selling.

I had a feeling that it was going to be passed in, which would be the only time I would be interested. So at the last minute on Friday afternoon, I managed to fill in the forms to be a registered phone bidder. On Saturday morning, I managed to be the highest bidder in an auction for a block of units that got passed in, so I was in the position of first to negotiate with the vendor.

I've spent a lot of time negotiating, and I've negotiated a pretty good price on it (over 15% lower than my estimate of $375,000 where it was still returning 10% yield). It's returning 12.5% on the purchase price I negotiated.

They also wanted it on an auction contract (unconditional) on the lower amount, and were quite adamant that they would only take offers over $320,000 for a normal contract. But I managed to negotiate to be on a normal sale contract, and have put in the standard subject to pest, building and finance at just under $320,000.

I've secured the services of a mortgage broker on this forum to find a lender for a loan with 20% deposit on a regional property.

I've got a local solicitor for conveyancing organised.

Contract is ready to be signed.

But… unfortunately, because it's just over 4 units, I couldn't go with my original lender who only do 4 units and below. And because it's in a slightly higher price bracket than I was originally looking at, I can't buy it at this point in time without some refinancing fenangling on my 1 other investment property which probably wouldn't happen realistically anyway.

So if anyone here is interested in taking it over, let me know via PM as soon as possible (have to let them know today and they will be going to the next interested party).