Best deal ever

Discussion in 'Investor Stories & Showcase' started by Liam, 13th Apr, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Liam

    Liam Member

    Joined:
    29th Jul, 2016
    Posts:
    12
    Location:
    Sydney, Australia
    Who here owns the title for the best property deal ever?

    I’d love to hear your stories!
     
  2. Karina

    Karina Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    207
    Location:
    Sunshine Coast
    Ok I am going to have a go at this one, not sure I will take the prize but really like this deal. 1 of my US properties purchased in 2012.


    This one is in Atlanta Georgia (fayetteville) in a good area (good school district too), purchased for $75,000 US dollars (about $75,000 AUS at the time) + $25k renovations = 100k invested.

    Property is a quadruplex (4 townhomes) 2 x 2 bedders, 2 x 3 bedders.
    Rents for $3490 US dollars a month (could get more but have a long term tenant under market rent) = $4886.00 AUD a month

    Current value is about 350k (US dollars) = $490,000 AUS dollars.
     

    Attached Files:

    Jmillar, craigc, Reddy and 13 others like this.
  3. strongy1986

    strongy1986 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,057
    Location:
    VIC
    that might be the knockout blow for the thread
     
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    11,625
    Location:
    Brisbane
    That is great rental income for the money outlaid.

    I’m curious to know what sort of expenses come out of that rental.

    We would be paying (in Australia) -

    Rates
    Utilities
    Insurance
    Property management fees
    Land tax (possibly)
     
  5. Karina

    Karina Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    207
    Location:
    Sunshine Coast
    Off the top of my head
    Rates (called county taxes in the US) - $3200 a year on this one (would be less on a freestanding home)
    Utilities - paid by tenants
    Insurance - on the quads about $1600 - $1800 year. (on a freestanding single family home around $700 - $800 year)
    Property management - around 8% in Atlanta
    No land tax

    Other expenses - these are mainly related to being a quad. I pay $100 month for lawn maintenance (they come twice a month and do a general tidy up, blow leaves, weeding etc, $50 a cut)
    Pest maintenance - 4 times a year have the block sprayed for ants, cockroaches etc at $150 each spray so about $600 a year.

    You generally would not have those additional expenses for a single family home.
     
    TiV, Reddy and wylie like this.
  6. Karina

    Karina Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    207
    Location:
    Sunshine Coast
    Here is another one of my favourites. I have lots of favourites bought around this time. (2012)
    This is a freestanding home, paid 58k US dollars, AUD was actually higher than US at the time at 1.05, rehab was about 10k

    Worth about 200k US dollars now (about $280,000 Australian dollars)
    Rents are $1320 US dollars a month - (about $1848 Australian dollars)
    Long term tenant living in the home - would rent for $1500 US dollars a month now to new tenant (about $2100 Australian dollars)

    Video of the home (also in Atlanta Georgia, this one is in Lithonia) - pre renovation video
     
    Last edited: 14th Apr, 2019
    Empire, Liam, Sackie and 1 other person like this.
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,414
    Location:
    Perth
    I don't think I'm going to win any titles but I think my best deal was probably a 1200sqm site I bought in Perth in 2012 for $850k. I then spent $1m building 4 houses on it. During that time Perth was going through a mini boom and it took an already profitable project from good to far out. All up including holding costs blah blah we spent approx $1.95m. On completion in 2014 we sold 1 for $705k and did reval on the others at same price. So at that time the project finished with a value at $2.8m and almost 45% profit

    It's not worth that much anymore (probably $2.4m) but with the reval we pulled money out and onto the next project.
     
    Jmillar, craigc, Propin and 5 others like this.
  8. alicudi

    alicudi Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    414
    Location:
    Melbourne, Australia
    I was going to post in this thread thinking full well I must have scored the best deal ever, however the above deals already mentioned seems to have beat me!
     
  9. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,414
    Location:
    Perth
    I'd love to hear about it. I'd love to hear about everyone's best deals.
    I mean my cost almost $2m and Karina's was like a tenth of that. Everyone's deals are different
     
    wylie and KateSydney like this.
  10. Karina

    Karina Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    207
    Location:
    Sunshine Coast
    Agreed would love to hear about it as well.
     
    KateSydney likes this.
  11. alicudi

    alicudi Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    414
    Location:
    Melbourne, Australia
    Ok, due to popular demand here is what I think was my best investment:

    On the 29th of October 1997 I purchased on the Nepean Highway Frankston for $47,500. I lived in it the whole time up to the date of sale which was the 8th of April 2001 and sold it for $96,500.

    Whilst I lived in the unit I also rented out the 2nd bedroom at $125 per week in the beginning increasing up to $150 per week towards the end of the period of ownership adding an extra $25,000 or so of income over the period I owned it.
     
    Last edited by a moderator: 14th Apr, 2019
    Luke T, Propin, Liam and 2 others like this.
  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,414
    Location:
    Perth
    Now that is awesome! Doubled in price and renting out the room paid the mortgage so you were living for free or almost??
     
    Last edited by a moderator: 14th Apr, 2019
  13. alicudi

    alicudi Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    414
    Location:
    Melbourne, Australia
    That; was me at 24 years old and I remember my loan repayments were $299 per month!
     
  14. Karina

    Karina Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    207
    Location:
    Sunshine Coast
    I love this deal, doubled your money in 4 years and collected cashflow along the way. Never underestimate a small value deal, it can be the stepping stone to great success!
     
    Last edited by a moderator: 14th Apr, 2019
    skater and KateSydney like this.
  15. Speede

    Speede Well-Known Member

    Joined:
    26th Sep, 2015
    Posts:
    758
    Location:
    A wannabe Mexican
    During Syd boom...

    Purchased 4 vacant blocks...$300,000 each. Sold 2 of them still vacant at $620,000 and $600,000.

    Built on 3rd block and sold finished house for 1.39m. Cost of build 530k.

    Still have 4th block and getting plans/da at the moment...will probably end up selling once finished.
     
    Luke T, craigc, Empire and 6 others like this.
  16. Luca

    Luca Well-Known Member

    Joined:
    28th Jan, 2016
    Posts:
    719
    Location:
    Melbourne
    What was the year you bought them? Pretty good deal, well done. New subdivisions?
     
  17. Speede

    Speede Well-Known Member

    Joined:
    26th Sep, 2015
    Posts:
    758
    Location:
    A wannabe Mexican
    2015 Purchased.

    Sold 2 blocks mid 2017 & house in Nov 2017.
     
  18. Liam

    Liam Member

    Joined:
    29th Jul, 2016
    Posts:
    12
    Location:
    Sydney, Australia
    Some amazing stories here. It’s inspiring!

    I’d love to keep hearing about other great deals, because I’m wondering if there is a pattern.

    One thing I noticed is that the deals mentioned so far are all between 4-7 years. Not sure if that means anything though...
     
    Propin likes this.
  19. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,574
    Location:
    Melbourne
    I made 45 % in 3 months a few years ago!!! 45 % ROI

    bought a piece of land for $20k, so it for $29k 3 months later:D
     
    Luke T, skater, alicudi and 1 other person like this.