Hi,
I am struggling to find positive pretax cashflow deals after being to the Richmastery Academy in October. I had 3 houses before the Academy and have been spending close to 30 hours a week looking for opportunities and making offers. My criteria are stricter than before based on their criteria but I have a couple of opportunities that are better after tax cashflow than my others but still not up to scratch for the mentoring scheme. I was just wanting some opinions as to whether you would buy them or not based on the figures.
1) Very tidy 2 b/r townhouse 120m2 including internal access garage on 350m section. Best area of town. Valued at 136K option to buy at 110K rent $170/wk. Gross yield = 8% 26K equity on purchase. (19%) Improvements needed are only modernising decor.
2) Standard 90m2 3 br ex state house with single garage on 730m section. Needs decor modernised but nothing structural. No landscaping done. Rent now $165 if repainted internally $185. Valued 130K option to buy at 115K Yield if improved 8% Instant equity
15K (12%) but more opportunity to add value.
So is anyone buying 8% yields at the moment??
I have tried to be very creative with sourcing deals. On the weekend I even put in a condition to pay for the surgical treatment of the Vendors lame dog (I'm a vet!!!) so I could get a reduced price but the agent wouldn't present it before the open home.
ANyway, would hate to do all that hard work to not be able to see it through but if the consensus in this forum is that they are not good enough then so be it. WHere do I find the magical 10%ers?
ANyway thanx and have a good weekend!!
Geoff
I am struggling to find positive pretax cashflow deals after being to the Richmastery Academy in October. I had 3 houses before the Academy and have been spending close to 30 hours a week looking for opportunities and making offers. My criteria are stricter than before based on their criteria but I have a couple of opportunities that are better after tax cashflow than my others but still not up to scratch for the mentoring scheme. I was just wanting some opinions as to whether you would buy them or not based on the figures.
1) Very tidy 2 b/r townhouse 120m2 including internal access garage on 350m section. Best area of town. Valued at 136K option to buy at 110K rent $170/wk. Gross yield = 8% 26K equity on purchase. (19%) Improvements needed are only modernising decor.
2) Standard 90m2 3 br ex state house with single garage on 730m section. Needs decor modernised but nothing structural. No landscaping done. Rent now $165 if repainted internally $185. Valued 130K option to buy at 115K Yield if improved 8% Instant equity
15K (12%) but more opportunity to add value.
So is anyone buying 8% yields at the moment??
I have tried to be very creative with sourcing deals. On the weekend I even put in a condition to pay for the surgical treatment of the Vendors lame dog (I'm a vet!!!) so I could get a reduced price but the agent wouldn't present it before the open home.
ANyway, would hate to do all that hard work to not be able to see it through but if the consensus in this forum is that they are not good enough then so be it. WHere do I find the magical 10%ers?
ANyway thanx and have a good weekend!!
Geoff
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