Cheapie Reno - Smithfield SA

Vanity is finally in. House is done. Time for some numbers. Total reno cost is just under $3.5k all inclusive. Gross yield on purchase price is 8.7%. Property should be at least $70 CF + each week, that's a 13% net yield on the money I put into the place (27.8k) which includes the reno. After maintenance it'll be more like 8% net.

 

Was there a smaller vanity available? Lol

Numbers sound great! Good job!

 

@Johnny Cashflow Thanks - it was the cheapest one I could find haha! Small bathroom small vanity I guess. It was the most frustrating part of the reno - nothing went right, and plumbers charge an arm and a leg

 

I'm sure that bloody vanity gave you nightmares from the minute you took out the old pedestal sink.
Looks good. When do you reval and tenant?
And has settlement happened yet?

 

Sure did - everything was bloody welded in.

Trying to get a tenant in by Xmas, it's a mad rush. I started advertising yesterday at $250/wk, have already shown one couple through, so I'm trying to process their application with @D.T. 's help.

Settlement was on the 18th, so I ran over my ETA a little but haven't had to pay any interest yet. Will revalue in 3-6 months time, hopefully that will mean I can actually withdraw some equity, and the garden may look a little greener by then.

 

Grab some weed and feed for the lawn and that should help it look nice in time for 3-6mths reval

Lawn Builder 2.8L Weed, Feed And Green Up

And/or oversow some seed

Hortico 500g Tough And Drought Hardy Lawn Seed

 

Already done Step 2! Might have a crack at Step 1 before the tenants move in tomorrow.
Looking at $250pw for an initial 13 months. Paperwork has been horrible.

 

@joel that's awesome news you have someone moving in tomorrow. 6 days from settlement and reno done and tenants moved in. Awesome work.

Good call on 13mth lease so it ends at the end of Jan next year

 

Wasn't my idea

Ideally I would've had someone move in on settlement day but that trail went cold - and speaking of cold, I was sick over the weekend so couldn't really do much..

I find it ridiculous that the annual rent is 50% of the money I fronted for this.

 

Awesome work Joel. To think that I spent $4k recently to do a cosmetic reno (fixing cracks, painted whole interior wall and ceiling of the house, retile bathroom, laundry and toilet), your money went a long way compared to mine. However, I am not as handy and would probably end up doing the project for months if I did it myself. Found a trady that charges 1/3 of what I earn / hr helps as well.

Are you going to be self managing the property?

 

Heh, I'm not that handy either, it cost me $700 to install a $100 vanity. These plumbers charge 6x my hourly wage and half of 'em have no idea.

Self managing to begin with, but being Smithfield I don't want to do that for long.

 

Nice. So far so good!

 

Good PM's are hard to find in Adelaide from what I've seen

Are you giving it a go for a learning experience or to save $$?

 

Neither - I'm doing it because I wanted a tenant in before Xmas.

 

I would think a pm would be able to find someone quicker, with ads and staff etc. unless it's because you don't do as thorough background checks??

 

Time is of the essence with many PMs in Adelaide.

 

Well I've just handed over the keys less than 48 hours after posting the ad - it was just easier this way. Got Dave T to help with the checks and all that junk, so I just need to lodge the bond after xmas and then I can sit back and let the cash roll in. I bought the tenants a bottle of the finest cheapest wine as a way of saying thanks & Merry Christmas.

 

A bottle! Wow not a box, that's flash! I'll rent your next place

 

Depending on what TICA says about you Bob

 

I do like tica masala

How's it all going @joel? Any reval or idea on current price from recent sales