How I increased my income

Thanks will check it out today

 

Just an update, rehab/reno crew went through this property again around $5000 rehab/reno

However rent higher than expected now estimated $900 per minth

That will be 14.48% net yield
This could also be a flip next year..... but I think its most definately a keeper

 

I am now bedding all my properties..... then phase 2...... continue accumulating again ........keepers and continue increasing flips
Thats 20 properties in US between Atlanta and Detroit

Will then also look at financing more deals, using power of leverage..... investing on steroids

MTR

 

What's the reason you structure your US properties this way? I am looking at starting out on the US front however have a slightly complex situation. I live in HK however intend to end up back in AUS one day so any help would be appreciated.

 

Hi MTR
Do you source US properties for clients?
I’m interested/investigating starting a US property portfolio but I’m starting to go down the rabbit hole re: bank accounts, taxes, structure, property management etc. my head hurts and analysis paralysis is starting to set in!
Thank you
Adelle

 

Nope not sourcing for clients

Here to help and I am loading up..... piggy back if you like....

 

Reduce tax
Asset protection

 

Thanks. Who do you use as an accountant in AUS/US? I have looked at Integrated Financial Group in the US and they seem reasonable however seem pretty big so might not get the right level of individual attention. I want to make sure that I am set up the right way from the outset. Too many bad experiences in Aus with bad tax decisions and given the US seems to be even more complicated along with the asset protection issues, O am holding off until I get this set up correctly. Appreciate your insight.

 

Important to use an Accountant who understand US tax laws, complex and get it wtong and you will be in a world of pain. ATO is a walk in the park compared to IRS

I started with a Aussie accountant claiming to be US tax expert, absolute disaster

I recommend you use US accountant who will liase with your Aussie accountant for best outcome

I cant recommend my accountant in US as he is not taking on anymore clients

I have not heard of this group you mention? Just keep resesrching, ask whether they service foreign clients ??? Numbers

 

OK here is my latest reno/rehab
This is a little gem, good neighbourhood, which is experiencing growth

$49,900

 

This is a decent size home around 1500 sq ft....

I work out my net returns with either 60/55% off the gross

$53,000 (incl rehab/reno)
$825 rent per month

10.27% net yield @ 55%

Higher entry price from my norm for this market. The retail price for this is probably around $75-80K, so there is equity in the deal. The issue is if you sell today by the time you take selling costs etc. out would be no point.

In a rising market the easiest way to make money is to load up, volume. Benefit here is I am cash flow positive.

 

Is this a Detroit investment? Mind sharing the address?

I've just returned from Detroit after spending 2 weeks there looking around the area and checking out the potential investment opportunities there as part of my due diligence before I decide if its a good investment choice for me.

 

Cant share the address for obvious reasons.... way too much competition in my top 4 locations.

Numbers are real, but you can also buy at a much lower entry point, but it will also perhaps be not as desirable as this location. Doing a mix of cheapies and higher price points. Should balance out the cash flow and growth nicely.... fingers crossed

MTR

 

What do we mean when we say retail price is now $75-$80k. The purchase price was $53k including rehab. So, does that mean it could sell for $75-$80k right now. Immediate $25-30k profit on $53k investment (~50% immediate return)? A rather impressive flip if that is the case!

 

Fair enough. I've got a pretty good feel for Detroit now but still completing my due diligence. I do see alot of potential there though and to be honest I loved my time in Detroit. People were nice and I felt like I was at home really.

I stayed at the MGM grand and Motorcity Casino during my time there. Great places to stay. Free valet parking at Motorcity was very nice touch.

Driving on the right hand side took a bit to get used to especially trying to follow the GPS around to different areas of the city. That was quite amusing.

I must admit though the infrastructure there in terms of roads is second to none. Awesome awesome roads there to drive on especially the motorways.

 

We are buying distressed properties... ie foreclosures, buyers who cant pay taxes, prior to hitting the market.
Retail is when they hit the market with a retail rehab.

Not an impressive flip yet in 12 months …...I would say YES...

selling fees 6% ouch and double ouch
Retail rehab - $8K??

No point selling in a rising market.

Think about Syd/Melb anyone who did a reno probably wasted their time, because the trend is your friend... that simple, hold off and capture growth … more $. That is why I say.....TIMING IS EVERYTHING

 

As Steve McKnight says, get on board and do nothing while you sail upwind ;-)

 

I am moving to the US for 2-3 years. Is it possible to get loans over there? With the dollar as it stands I feel like taking money over there would be like relieving one's self in the wind.

 

Trend is your friend