Do Pre-Tax Positive Cash Flow properties exist?

I've been having a debate with a friend of mine about the fact that pre tax positive cash flow properties no longer exist. They are a myth and I'm yet to be convinced.

Now I know that some curve-ball type opportunities arise like boarding houses, blocks of flats and the like, but what I'm talking about is a 3 bedroom house, or town house that provides pre-tax cash flow positive returns. Oh and they need to be in towns with a population greater than 8-10,000 because I'm sure that anything smaller than that poses a big risk if the resources industry goes south.

I'm not asking where they are, I just want to know if anyone has bought one!

Please help us resolve this issue?

Lets come on discussion: http://www.ipropertyco.com/Forum/topic53-pre-tax-positive-cash-flow-property--prove-it.aspx

iPropertyCo: User Community

How about we have the discussion here instead?

Regards,
YI

"Knowledge is Power"

Yes, I ahve cashflow positive properties that are three bedroom and in towns about 10,000 population.

cheers

Sonya

Sonya, have these been cf+ since you first bought them?
Thanks

Yes, they have, not by much intially as I locked myself into an interest rate over 8%,  however, they are even more positive now that I have refinanced.

I know of a great deal of positive cash flow properties that are positive cash flow upon purchase and BEFORE tax!

Taking tax out of the picture entirely I know of properties that can earn 5-12% cash on cash return. So yes they do exist and in towns of over 8-10k.

PS. I am talking about houses that are 3 Bedrooms, 1 Bathroom. Not units, blocks of units or other niche properties