Where to buy for high net cashflow

Apologies,
I misread rent at $250 pw
$18,200 rent

$7875 repayments
$868 Rates
$2680 BC
$850 Water
$300 Insurance
$1547 PM fees @ 8.5% Inc gst

$4080 Cashflow positive,
excluding maintenace, vacancy

 

Something like this?

https://www.realestate.com.au/sold/property-unitblock-sa-whyalla+stuart-131889102

 

You forgot to deduct tax and PM fees. Even assuming 100% vacancy rate and no maintenance, the net cash flow may still turn out to be neutral only.

 

For high net cashflow, I'd be looking at stocks instead.

 

But wasn’t OP talking positive cashflow for P&I, and not IO only?

 

put it this way,
they were talking about high NET cashflow, you might get lucky and have a zero vacancy and zero maintenance year, but on average you wont

so your net cash flow is going to be severely affected by events, !k cash flow vs 1.5k cashflow isnt much difference in the grand scheme of things

 

Very risky imo. Might be worth a trip down to whyalla to have a look see before you buy
Quality of tenant, vacancies, repairs.

 

Interest is $500 per month so $6000pa @2.82% 214k lend. It's P&I so $880 per month.
No management fees I manage it myself. I get to actually meet them and do check personally so haven't had any issues.
Tenants pay water.
BC fees $2680pa
Council rates = $1,161
Insurance $150
Rent = $18,200

So yes it cashflows. You're right, not anticipating capital growth on this one, others that are doing that leg work.

Right near major public transport, 3km to CBD, and within sought after school zones (Adelaide High and Adelaide Botanic High). Rented with 4 days of settlement on the first go.

 

These run at @16 K CF+ using 2.89% IO, and at @ 2K CF+ using 2.89% P&I . So its possible...

 

You can't find cashflow positive on P&I plus costs (from day one) because they generally don't exist in the larger cities on standard resi houses.

I'm taking Sydney, Melbourne, Brisbane, etc.

 

if you do the sums on this you would find its probably only a NET return of 2 or 3% based on FULL purchase price using CASH
so not worth it unless you think you will get capital.growth as well
its also hard to borrow for stuff like this so the leverage factor is almost out of play

Also whyalla.stuart is the most average area in Whyalla and 1 bed units in country towns always atract the most average tenants - so your tenant pool will.be rubbish and vacancjes high
A duplex that was converted into a house just sold in whyalla stuart for approx 70k - that might have been a good buy as with a bit of elbkw grease and paint you could probably achieve $300 per week rent - about 20% return
which is where you need to.be for.any meaningful cashflow

 

FWIW i think Whyalla vacancies are aboit to get extremely tight

Last time whyalla supply vs demand l(for rentals) looked like this was just before the anticipated olympic dam expansion which was canned.
Problem back then was that developers went crazy pre decision and flooded the markwt with new homes which Caused a big oversupply

Plenty happening in Whyalla at the moment and near future which i wont go into

 

where are you taking them?

 

Positive cashflow properties are out there, generally not in residential housing (unless you can add a granny) and as previously stated, theyre also harder to find in major cities. For the best returns you need multiple rents from the same property (unit blocks/office buildings/storage units/duplex/4plex etc).A quick-ish way I find them is by using the 1% rule. They are there, you just need to know what to look for.

 

I just found one that meets my criteria in SA, 5-9 conroy st, port augusta. 12 unit complex askin price $850,000 rental return $2620 per week (contacted agent for this) which is $10,480 per month ($125,760 annually). More than meeting 1% rule. Still quickly calculating, id then use the 50% rule on expenses. Cut rental return by 50% that would usually cover expenses. $125,760 ÷ 2 = $62,880 (NOI).The property is commercial which would generally mean a higher deposit, 30 - 40%. 30% of $850,000 = $255,000. Which brings the loan to $595,000 plus closing costs. Using a mortgage calculator paying down interest (4%)and principle over 30 years your annual payments will be $34,373.88. Leaving you with $28,506.12 per year, $2,375.51 monthly, $593 per week. Knowing all this i'd then look into it further. Where will I get deposit etc. Risk vs reward. Due diligence. It doesnt need to be this property either, there are a few out there this is just a quick way I find them then decide wether to pursue it further or not.

 

Net Yield 7.1% borrowing cost 3.4% more than half of the income is profit
Is there much management on your side?

 

This was just an example. Management will be dependent on your goals and location

 

https://m.realestate.com.au/property-unitblock-sa-port+augusta-126388714
Sorry, the property i used as an example is one that is currently for sale

 

The problem is we all chat about deals we have done that we may or may not be able to repeat and properties for sale we may be able to better the price ie nothing is finite till sold

 

Hotel Chino - Woolloongabba:

The property consists of 38 Studio apartments and 6 One bedroom apartments only.

There is a full information memorandum on the property including, some photos , floor plans and plates and the last 3 years profit and loss statements as well as the records of income.

The property is for sale at $6,300,000
The Herron Todd White valuation came in at $8,000,000.

I am more than happy to send you the links for the memorandum and valuation.

Worth looking at ?