Recommendations/examples of net positive cash-flow IPs?

ive always been a cashflow investor. Are you saying I'm a newbie?

 

That's not what I'm saying at all . As rolf said, see context.

Keep the safety on that pistol please!

 

You certainly do.

It IS a numbers game. What's wrong with having 20+ properties if you've got good managers? It's only when the managers aren't competent that you have issues. No matter what kind of property you invest in, you need to have a decent size portfolio if you want to live off of it.

Yes. You KNOW the gains are coming, so you just hold on, & on, & on. Some were bought to hold forever, but as the previous peak got further & further behind, we bought more, specifically to sell once they'd had their growth.

This is the thing that many of the 'blue chip' investors miss. They buy properties on 1-2% yields because they'll get good growth, but there's usually a ripple that moves to outlying areas as well. You might not make as much growth, but you WILL get growth unless you sell too early, but the bonus is that you can hold much more AND even get paid a tiny amount to hold onto them, instead of the neg cashflow eating into your income.

There really shouldn't be a discussion on CG vs Cashflow, when you can get BOTH. As MTR stated, we owned a few around Mt Druitt area, but that's not the only place we invested. We have bought in Qld, NSW, Vic & SA, many of they in regional or less than perfect suburbs. To date we have not made a loss on any property.......although in saying that, we do have one that is currently causing grief that would have already been sold except for an *** hat of a tenant.

Hehe, all good. Was typing on a phone last night, so didn't read all of the thread properly.

 

No problemo. I'll let you off with just a warning this time

 

that's the funny thing
even woop woop properties can have their gains.
the growth cycle tends to be very short Nd sharp
eg- it's not uncommon for a town to double in price in less than a year and then do nothing for 10-15 years
If the rents / return is there the growth will follow

 

Everything can work. Blue chip, CF possie, regional, add value, development, H&L. They all can and do work.

The most important thing is What is best for the individual's financial situation, risk tolerance and goals. And that, my friends, is not easy to go over with a newbie in detail on a forum. Needs some decent 1:1 time with someone successful and clued up enough to help you answer those questions. That, imho is the most optimal way for a newbie to get started the best way possible. Having the forum is a great way to meet other like minded people and professionals which specific knowledge that can help you along the way. But if a newbie has the opportunity to meet 1:1 with someone successful and work though those questions, that's gold. And I'm not even talking about meet ups. I mean 1:1.

So any hardcore newbie out there wanting the best start, try to find someone you connect with and is also successful with this property game and try to get some of their 1:1 time. It can make a huuuuge difference. Starting 1cm in the right direction, 100km down the road could see you build that wealth strategically, with appropriate risk and reach your goals years sooner (many will never reach their goals). Starting off 1cm in the wrong direction, 100km down the line could mean cross coll, mining towns, OTP in over supplied markets, 15k/year strata beauties and worst of all, negative equity. Its not about making no mistakes - many mistakes will be made which is normal. It's about reducing them, especially the big ones as much as possible. This, can be done. Just 1 investor's opinion here.


OK, back to my marinated, crumbed tofu. The oil is ready.

 

Some of the threads in this sub forum which discuss US properties make me envious. $100K houses getting $1000 per month in rent. Very hard to find that in Oz.

 

Not in OZ, this specific to USA, some investors posted on this thread

How I increased my income

 

Exemplary advice @Leo2413 !!

 

I would say that chasing CG also depends on stage of cycle and can be speculative due to various reasons.

 

And when chasing cashflow if you go regional you can still own in some of the better areas of rural towns and cities which have good tenant quality and minimal problems. If you go for similar cashflow in the outer suburbs of capital cities you'll generally be in the lower socio economic areas with more tenant issues.

Willy

 

Brisbane - Purchased late 2016
35 klms South of Brisbane CBD - 30 mins drive to Brisbane CBD or 33 mins to Southport (google maps data, non peak hour times) 4.9 klm to Beenleigh station
Purchase Price 205k (3 bedroom free standing house on 600m2, flat block no flooding, not on a busy road)
$5,000 Reno (carpet and paint, new blinds and a new stove)
Rent $325 a week
$54 a week positive approx after all exp @ 5% interest only loan
$86 a week positive approx after all exp @ 4% interest only loan
At least 70-80k in genuine equity after two weeks with a basic renovation
8% Gross yield.