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.
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)
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.
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
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.
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!
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
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.
Now that is awesome! Doubled in price and renting out the room paid the mortgage so you were living for free or almost??
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!
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.
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...
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
