Hi everybody. Recent lurker, first time poster, so please go easy on me! I have only recently began researching and reading through the somersoft/property chat threads. My husband and I currently have our PPOR which we built in 2009. We now have approx 300k equity in our home. I have always been interested in property investing and renovating/flipping, however my hubby was never interested. I've finally been able to convince him so we are now in the early stages of hopefully purchasing our first ip. I realise that in today's market renovate/flip is not what it was 5-10 years ago, as purchase prices in suburbs where this is possible to make profit are completely out of budget for us, so my goal is to spend the next 15 years investing (and holding long term) low cost properties to build a portfolio that in 30 years will become our retirement income. I'm currently 28. I would love to be able to afford to predominately buy in the suburbs such as Ardeer,Laverton,Albion etc, however serviceability will become an issue short term as rental returns are quite low (approx) $280 per week rent on a $400k property, and I would want to hold for approx 10 years before developing/selling to developer to maximise on capital growth that I would expect these areas to gain. We are expecting to be able to borrow approx 400k. (Still in process of applying). Due to our situation we are going low doc 85%LVR with IR approx 6.5% as it is currently our only option, I expect our serviceability after the first IP will be low/ nothing until we can change to a regular lender. I wish we could wait 12 months so we can enjoy the current low interest rates through normal banks, but I'm afraid that by waiting 12 months property prices will go up 50-100k and we will regret waiting and not getting our foot in the door. I would like people's thoughts on a few scenarios to get us started. I'm torn between these options; A) Buy 1 IP and hold in Laverton- crappiest house, on 600m2 block- approx 400k dev potential down the track (atleast 10-15 years). Would be CF Neg, and I think it would take a while for any decent growth to be able to use equity for second purchase. I don't mind using my own cf to fund the difference but I think banks serviceability calc will stop me from getting a second IP. B) Buy 1 (maybe two if budget stretches) H&L packages (or 140k land cosbuild 120k cheap house on it for total cost of approx $260-280k each in Pakenham (walk distance to train) or Cranbourne West (5 min drive to train). These would be long term holds, and I would expect an initial capital growth of approx 40k per property in first 18 months in each property,which would make this option close to CF neutral. I would be relying on gains on this to hopefully afford me a second/third property, though I think I would be restricted to the same type of investment value again.. c) Frankston North- big block, crappy house My other thought was Deer Park,as it seems a bargain, there is a prison being built nearby (I'm thinking will boost the local economy?) and there are some pretty weatherboard houses there that if we're anywhere else they would be hot property- from what I've read about Deer Park it seems to have enough there to service the locals, and they seem to like they're community. They are a 55 train trip to the CBD which is probably a big reason it is so cheap.. I am in this for long term holds, but would like growth and yield so that I can grow a decent portfolio. My plan is to hold all and pass on to my kids, whilst generating a good income for retirement. I would really appreciate your input, as I said we are complete newbies to this, so need as much help as we can get Sorry in advance if I have rambled on a bit- writing this in my phone so I hope it makes sense!