QLD Last week’s bargain buy of the week is in Riverview Qld

Hi Guys ,
I stumbled across this add on news.com last night of the latest property we bought and reno'ed last week .
A few of you had asked to share so here it is;

Sold for $100,000 under its value

I thought it might encourage some people that there are deals out there still!

The figures go;
3 bedroom house with converted garage to 4th bedroom: Brick and Tile
Purchased on 17th May 2017 : $150K
Renovation Cost: $16K
Renovation time frame: 7 days
Pre reno rental income : $220 per week
Post reno rental income listed at : $305 per week
New Value Estimate-(now)June 2017: $220-230K

Capitol growth Potential : 5-6% annual for next few years
Reasons for bargain buy:
25 holes in walls,
10 cracks in fibro,
7 smashed windows/glass doors,
filthy dirty inside and out,
a full house of furniture in the backyard along with motor bike,etc
1.5 metre high grass,
10 trees overgrown around house,
x10 old lights,smashed internal doors x3,
damaged kitchen benchtop,filthy cupboards,
x2 cupboards required repair,torn lino,
broken plumbing pipes outside,many taps required replacement,bad drainage,
filthy walls required painting throughout,
old vanity,
shower screen damaged and whole bathroom needed re grouting,
no curtains,old letterbox,missing fence on x1 side,
air con unit remote missing and front broken off,
x2 security screens missing,all flyscreens U/S,
retaining walls poor,manhole cover missing,
eaves need painting,external doors required painting,
foundations settlement (a few cracks showing evidence so we rectified the drainage issues ,
so we removed the trees and fixed retaining wall and water flowing into house surrounds
(& to allow further foundation repairs later if needed we allowed $10-20K equity in the value- as this would be worth $240K now otherwise)

Other reasons for cheap buy: We had to go cash unconditional contract to ensure quick sale for vendor


Hope this helps guys
All the best !

 

Awesome buy Luke. Excellent feaso analysis for your profits and I think just an all round bargain. I'd love to know how you went about finding it? Was it advertised and you just low balled with the cash offer (or not if the listed price was $150,000) or did you just see that it had potential and got in contact with the owners? If it was listed what was the listed price? All round fantastic flip/buy.

 

Also; is it in a flood zone/potential for flooding? Cheers

 

Thanks Booming Sunnyvale .That one was a real blessing from God actually .

How much listed -$200K
How did I find it-
For this 1 I just kept an eye on the net and originally I had it for a client contracted at $195K(I am a buyers agent)and we got a building and pest report and the buyer freaked out as often the builders leave so many things with doubt in the buyers minds .This is due to all the sueing going on these days its sad but a reality that people(especially builders & pest guys) just need to cover themselves . So I kept the agent informed all the while with all the delays with 2nd inspections etc and built relationship with her . Then after a lot of mucking around with buyer they pulled out on B&P clause (and that was the 2nd buyer who had done this).So by this stage sellers just need to get out and get scared that every buyer will keep mucking around so I said I will do a cash unconditional offer on it (no finance clauses or any options to pull out of contract)at $145K she came back at $150k I said fair enough that's not a bad buy so did it .

Will I flip?: no way that area is growing at about 5-6% so selling would lose the cashflow and equity growth that will make this deal most worthwhile.

 

No flooding or flood zone as is up on the hill a long way away from flooding up on the other end of the town

 

Is there a reason that your clients didn't go for a $150k cash contract?
Great purchase but as a buyers agent, I would have thought that you might have recommended to the clients to take that same path?

 

Hey Bris Jay -Actually I offered the buyer to make a cash offer and have a go but it was a first investment property for them and they were scared out of there brains due to the risks -an an all cash offer does carry risks on these types of deals A) depending on what else you find wrong during the reno and b) you may not be able to cashout after buying it and also most people don't have $180K odd in there bank account plus other buffers to cover all the deal and for if anything goes wrong.

 

Sounds reasonable. Just thought it was worth asking as many buyers wouldn't know the value of a buyers agent. Probably a good story for future clients... You follow your own recommendations if clients don't. Nothing better than asking your BA, "would you buy this?".

 

Good Point thanks I hadn't thought of that.

 

Another reason I thought of for a good price was it was similar to housing commission so they had no major heart investment in the property -Not like a homeowner who scrimped and saved for the place -they just didn't want to spend a cent on it .Also the neighbour (lovely people) had been trying to request they could go halves in a new dividing fence for years(even going to Qcat)to which they apparently wouldnt even accept the registered post letter to go to the Qcat hearing .So they literally didn't want to outlay 1 cent on the property so just wanted out .
It worked out well for my neighbour as I got it done through airtasker for $607 to them all up!(they had quotes of $2200 upwards so they were relieved when I bought it !)

 

how much would you charge for similar like this one for BA fees?

 

Hi Samiam,
we are booked out for around 3 months from now but we charge between $6 and $8k depending on a few things

 

I thought you might like to see the finished pics:

7 McCosker Street Riverview Qld 4303 - House for Rent #421292870 - realestate.com.au

 

Congratulations mate
Great work.

 

https://www.realestate.com.au/prope...e.com.au/property-house-qld-ipswich-125151162 Will you buy this?

 

Hey Larry
That has been on the market for ages so just be careful - there will be some issues there for certain reasons . Check flood zone and council re building approvals etc - my hunch is something is going on

 

Thanks Luke, just out of curiosity. I prefer a Queenslander.