From $10K in Cash to $3.3M Portfolio

Discussion in 'Investor Stories & Showcase' started by Ko Ko Naing, 13th May, 2020.

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  1. Ko Ko Naing

    Ko Ko Naing Mortgage Broker Business Member

    Joined:
    10th Aug, 2015
    Posts:
    594
    Location:
    Melbourne
    Hi PCers,
    It's a long way from Somersoft to PropertyChat. This forum has been the greatest resource that I use throughout my property investing journey. There are abundance of information anyone can obtain from the forum, lots of inspiration from other forum users, and lessons to learn from others. So I would like to share my property investing journey here in detail, hoping that forum users can get something out of this thread; be it inspiration, area knowledge, investment insights, etc.

    The Purchases
    Below is the list of our 8 property purchases from 2012 to 2019. Each property has its own good point and bad point. But I’d like to focus on the good point, and learn from the bad point as a lesson for the next purchase. So no losses here IMHO! :)


    PPOR: Wantirna South, VIC
    [​IMG]
    House:
    Built in 80s. 3 bedrooms 2 bathrooms 2 car spaces
    Land size: 500sqm
    Purchase price: $457,000 (2012)
    Current value: $720,000
    The Good: The suburb next to Glen Waverley. Growth potential. Nice area with easy access to Eastlink. Close to a shopping centre and good schools.
    The Bad: Subdivided land. Not much land content. Reasonably renovated.
    The Bottom Line: The first home that fits within our budget. Got awesome growth that allowed us to take out equity and expand our portfolio.


    IP1: Ballarat East, VIC
    [​IMG]
    House: Victorian-style Period Home. 3 bedrooms 1 bathroom 1 car space
    Land size: 420 sqm
    Purchase price: $235,000 (2015)
    Current value: $375,000
    Weekly rent: $290
    The Good: Very close to Ballarat city centre. Located in better part of Ballarat East. Sought-after period home. Potential to add value through cosmetic renovations.
    The Bad: Small land size. Located on a semi-busy street. No heating.
    The Bottom Line: First step in our investment journey. Positive cash flow from day 1.


    IP2: Ballarat North, VIC
    [​IMG]
    House: Brick-Veneer that was built in 80s. 2 bedrooms 1 bathroom 4 car spaces
    Land size: 580 sqm
    Purchase price: $250,000 (2015)
    Current value: $395,000
    Weekly rent: $285
    The Good: Potential to subdivide down the track. Solid ugly brick house with potential add value through renovation.
    The Bad: 2-Bedroom properties have limited audience in Ballarat rental market.
    The Bottom Line: Scope for subdivision. Lots of potential to add values through cosmetic renovation.


    IP3: Woodridge, QLD
    [​IMG]
    House: Queenslander highset built in 1975. 4 bedrooms 2 bathrooms 2 car spaces.
    Land size: 770 sqm
    Purchase price: $335,000 (2016)
    Current value: $350,000
    Weekly rent: $395
    The Good: Next to Underwood and Springwood, which are half-million median-priced suburbs. Located in Townhouse precinct/zone.
    The Bad: Didn’t do well in buying below-market value, as the vendor is quite firm with the asking price.
    The Bottom Line: First inter-state investment. Happy to hold for long-term until the time is right for knocking down and then will develop townhouses.


    IP4: Crestmead, QLD
    [​IMG]
    House: 30-year old Queenslander highset. 3 bedrooms 2 bathrooms 2 car spaces
    Land size: 820 sqm
    Purchase price: $327,000 (2016)
    Current value: $390,000
    Weekly rent: $440
    The Good: Huge land. Potential to add granny flat at the back. Nice positive cash flow.
    The Bad: A bit further out from Brisbane CBD. Over-estimated the rent and put up at $480 initially, so had been vacant for a few months.
    The Bottom Line: The number stacked up. It’s great to have land of this size 800sqm+. Potential to earn fantastic cash flow.


    IP5: Crestmead, QLD
    [​IMG]
    House: Another 30-year old Queenslander highset. 3 bedrooms 2 bathrooms
    Land size: 600 sqm
    Purchase price: $315,000 (2016)
    Current value: $360,000
    Weekly rent: $435
    The Good: Awesome cash flow. Recently renovated upstairs.
    The Bad: Ordinary buy-and-hold property with no room to add values. No more car spaces, as garage area was turned into a living area.
    The Bottom Line: A great example of buy, renovate and hold strategy.


    IP6: Redan, VIC
    [​IMG]
    House:
    50-year old triple-fronted brick-veneer house. 3 bedrooms 2 bathrooms 2 car spaces
    Land size: 1,100 sqm
    Purchase price: $320,000 (2017)
    Current value: $419,000
    Weekly rent: $310
    The Good: Huge land. Potential to build 2-3 units at the back.
    The Bad: Cash flow is not that good. $310 rent on 80% loan of $320k can give you an idea how it’s like in terms of cash flow position.
    The Bottom Line: Land is always the king! Redan is the suburb next to Ballarat Central and land scarcity will play a big role in terms of capital growth with this investment.


    IP7: Golden Square, VIC
    [​IMG]
    House: 100-year old Victorian-style Period Home. 3 bedrooms 1 bathrooms 1 car space
    Land size: 730 sqm
    Purchase price: $295,000 (2019)
    Current value: $295,000
    Weekly rent: $295
    The Good: Decent land size within 2-km of Bendigo city centre. Period homes are sought-after and people pay premiums to live in that type of home in Victoria, especially renovated ones.
    The Bad: As with any 100-year old properties, maintenance costs will be high.
    The Bottom Line: Happy with the purchase, as the type of the house and land size are the two main criteria that I set after the lessons I learnt from another similar regional city like Ballarat.


    The Strategy
    Our strategy has always been the one that can enable us to hold our portfolio as long as possible, even in economic situation like COVID19. As the properties are paying for themselves, we don’t actually need to worry too much about selling down to reduce debt or reduce mental burden that usually comes with highly negative-geared property portfolio.


    The Goal
    Initially, our investment goal is mainly to buy one or two properties and rent them out, without thinking anything much. As we accumulate the properties and expand our portfolio, the main goal is to achieve financial freedom through property investing or at least to have options with work (not to work because we have to, but to work because we want to).

    And there is an ultimate life-long goal of setting up a philanthropy foundation.


    Gratitude is everything!
    I would like to take this opportunity to show my gratitude to fellow forum users:

    First of all, @Michael_X for opening my eyes as my mentor, mortgage broker and a good friend

    @Rolf Latham for supporting me with mindset building and goal-setting

    @Simon Hampel for founding this form and taking over from Somersoft seamlessly

    @Toon, @TMNT, @C-mac for our discussions on everything related to Ballarat

    @Simon L, @RetireRich101 for their contributions on everything related to Logan

    @Xiao Hui for our discussions on everything related to Bendigo and beyond

    @Sackie for being an investor that I quietly look up to. Hope to catch up with you in person someday

    @The Y-man for holding PC meetups and some spiritual guidance with money and investing

    And other forum users that I might have missed out, but I do appreciate their positive and constructive contribution to the forum.


    If you have read to this point of the thread (or skipped :D ) and am wondering what the thread title has to do with the thread content. Our investment story was featured in May 2020 Issue of Your Investment Property magazine. That was the title that they chose for our story, so it must be a media-friendly one, right! :) You can get a hard copy from local newsagents, Coles or Woolies. Or download the excerpt in the attachment.

    Happy investing! Opportunity is everywhere!
     

    Attached Files:

  2. Vick B

    Vick B Member

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    Awesome read. Congratulations!
     
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  3. TMNT

    TMNT Well-Known Member

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    congratulations on your journey @Ko Ko Naing

    I see virtually all decent to great purchases,
    i also see that you have gone regional but stayed away from the slums and chosen the desirable props,

    you're in for a good ride!

    unless covid kills the market :D
     
  4. Trainee

    Trainee Well-Known Member

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    3.3 is gross tho, right?
     
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  5. apk

    apk Well-Known Member

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    Thanks for sharing, nice read.

    Good luck with your new journey @Ko Ko Naing
     
  6. Ko Ko Naing

    Ko Ko Naing Mortgage Broker Business Member

    Joined:
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    Melbourne
    I was expecting the most recent Golden Square purchase to pick up with the upswing of growth in Bendigo. Yes, it was COVID that came in the way. :mad:
     
  7. Ko Ko Naing

    Ko Ko Naing Mortgage Broker Business Member

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    Yes, @Trainee it’s gross. Net is around $915k.
     
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  8. melbourne171

    melbourne171 Well-Known Member

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    Every post has a purpose. He is a broker.
     
  9. The Y-man

    The Y-man Moderator Staff Member

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    The forum is called "Investor Stories and Showcase". It does not mandate that the person posting the story must be of a certain profession etc. The aim is to motivate and show others what is possible to do.

    The Y-man
     
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  10. Xiao Hui

    Xiao Hui Well-Known Member

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    Koko, you have done well!!

    Not everyone are willing to tell their success stories like you. Examining what and where you have invested so far definitely allow us to learn more from you.
     
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  11. aussieshorter

    aussieshorter Well-Known Member

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    Thanks for sharing Ko Ko, stories like this can be very useful for those early in the journey.
     
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  12. iloveqld

    iloveqld Well-Known Member

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    Thanks, Ko Ko. It is a good journey, and I believe that it will get better and better.
     
  13. Ko Ko Naing

    Ko Ko Naing Mortgage Broker Business Member

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    Melbourne
    I actually failed to understand the purpose of your post.:D

    I was here way before I become a mortgage broker, all the way back to Somersoft era.
     
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  14. David Shih

    David Shih Mortgage Broker Business Member

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    Awesome work @Ko Ko Naing and well done on being so transparent about your journey, portfolio and sharing your ins and outs on how you got there! I'm sure it's great learning for lots , including myself :)

    P.S Welcome to the big broker family!

    Cheers,
    David
     
  15. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Wow I love how detailed the post is- thanks!
     
  16. inertia

    inertia Well-Known Member

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    Did you use a property broker for the out of state purchases?

    What about Ballarat and Bendigo?

    Cheers,
    Inertia.
     
  17. The Y-man

    The Y-man Moderator Staff Member

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    Lil Skater and Ko Ko Naing like this.
  18. Ko Ko Naing

    Ko Ko Naing Mortgage Broker Business Member

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    I assume, you mean buyers agent. No, I don't use any. I normally short-listed up to 7-8 properties to inspect on Saturday and flew up to Gold Coast. I did like 2-3 weekend visits for me to be able to eventually purchase one.

    For Ballarat and Bendigo, it's the same. A bit easier though, as I can also do inspection during weekdays.

    Once you know how to do due diligence, how to research the area, how to put an offer and negotiate, it'll all be very similar. Personally, I like to learn and earn the knowledge by myself.
     
  19. Spiralkut

    Spiralkut Well-Known Member

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    Great read, congratulations on the success.
     
  20. KK_Kris

    KK_Kris Member

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    Great post. Thanks for sharing.