News.com article: best bargain buy in Qld this week & positive cashflow

The figures go;
3 bedroom house with converted garage to 4th bedroom: Brick and Tile
Purchased on 17th May 2017 : $150K
Renovation Cost: $16K
Renovation time frame: 7 days
Pre reno rental income : $220 per week
Post reno rental income listed at : $305 per week
New Value Estimate-(now)June 2017: $220-230K

Capitol growth Potential : 5-6% annual for next few years
Reasons for bargain buy:
25 holes in walls,
10 cracks in fibro,
7 smashed windows/glass doors,
filthy dirty inside and out,
a full house of furniture in the backyard along with motor bike,etc
1.5 metre high grass,
10 trees overgrown around house,
x10 old lights,smashed internal doors x3,
damaged kitchen benchtop,filthy cupboards,
x2 cupboards required repair,torn lino,
broken plumbing pipes outside,many taps required replacement,bad drainage,
filthy walls required painting throughout,
old vanity,
shower screen damaged and whole bathroom needed re grouting,
no curtains,old letterbox,missing fence on x1 side,
air con unit remote missing and front broken off,
x2 security screens missing,all flyscreens U/S,
retaining walls poor,manhole cover missing,
eaves need painting,external doors required painting,
foundations settlement (a few cracks showing evidence so we rectified the drainage issues ,
so we removed the trees and fixed retaining wall and water flowing into house surrounds
(& to allow further foundation repairs later if needed we allowed $10-20K equity in the value- as this would be worth $240K now otherwise)

Other reasons for cheap buy: We had to go cash unconditional contract to ensure quick sale for vendor

Hope this helps guys
All the best !

David Thiu wrote:

Hi Luke,
Blessing from God indeed :) totally !

I guess One Man’s Trash (Or Woman’s in this case) is another Man’s Treasure:totally

Stupid question but when people say cash unconditional offer, does it literally mean ‘Cold Hard Cash’ or can you actually borrow from the bank to make this offer? you could used borrowed funds as long as you don’t have any problems getting it approved and are ready to go with it within time frmaes…
basically it means the seller wants it sold without any out clauses for the buyer so they are guaranteed a sale … and they wont be stuffed around any more

Also curious about how the renovation was executed… Did you just watch DIY videos online and do Google searches on how to fix various problems around the house, or did you simply look in the yellow pages to find contractors to hire?…. how – I just started getting handymen and tradesmen in to my houses and watched them /helped them … so now about 12 years later I am doing them on my own and I use airtasker for lots of different guys.This keeps them honest
The pictures from the real estate website look amazing, but I’d love to see the contrast from before and after if you don’t mind sharing :) see below

Cheers,
David

Hey David

If you click on the news.com story then click on the property address it brings up an old listing for the property when it was first bought.
There are a few pics in there but of course it looked a lot worse in real life .

http://www.news.com.au/finance/real-estate/selling/this-weeks-bargain-buy-of-the-week-is-in-riverview/news-story/fb9e929a7ee7afa64a733e78e48d0a54

hope this helps !

Ethan Timor wrote:

Excellent result and thanks for sharing, Luke!
Love reading real stories (loaded with details, photos and figures!) that showcase how great, easy and quick it can be to turn an ugly duckling to a beautiful golden eggs laying swan

awesome thanks so much guys !!