We have been reading these posts for a while now, reading as much as I can and bouncing ideas off people. I have been interested in property investing for quite a while but have yet to purchase our first IP. Hence this post.
We have set up our rules, accountant, lawyer, company structure, the main rule is: must be cash flow positive before tax as we cannot currently support a money hungry property.
I am finding approx 5-10 properties a week that are cash flow positive before tax IF we could put down a large enough deposit to reduce the amount we are borrowing (this is before any improvements to increase value and increase rents)
The problem is, we are using 100% finance, the deposit secured against family property and the remainder to be secured aginst the new property.
We are having trouble finding properties that return positive cashflow before tax on a 100% loan. Is there something we are missing?
Would vendor finance be a way to go to reduce the amount borrowed and defer settlement of the remainder?
We are finding it all a little depressing and would appreciate any hints or advice.
We have set up our rules, accountant, lawyer, company structure, the main rule is: must be cash flow positive before tax as we cannot currently support a money hungry property.
I am finding approx 5-10 properties a week that are cash flow positive before tax IF we could put down a large enough deposit to reduce the amount we are borrowing (this is before any improvements to increase value and increase rents)
The problem is, we are using 100% finance, the deposit secured against family property and the remainder to be secured aginst the new property.
We are having trouble finding properties that return positive cashflow before tax on a 100% loan. Is there something we are missing?
Would vendor finance be a way to go to reduce the amount borrowed and defer settlement of the remainder?
We are finding it all a little depressing and would appreciate any hints or advice.
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