Well after a great break it’s time to get back into it. Things have been a little slow to start this year and while that is not a bad thing I need to pick up the pace to achieve what I promised myself I would. (to see that there is a post back in the beginning of January with the details). I am a very goal driven person and if I do not achieve goals that I set then I am disappointed in myself so the bar is there and time to jump high.
To be honest I am chomping at the bit for the next projectr that comes my way. I am finding it harder to find deals but it makes them all the sweeter when they come. I’ll post another message in a minute about my latest two deals.
Well I hope you guys and gals are all well and finding lots of problems out there to solve. Write down a note to tell us what you have been up to recently and the numbers as to encourage everyone to keep pressing on.Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHi AD,
Welcome home. It is good to be home! I have just returned from a property inspection on a positive cash flow property. I am looking to wrap it but the location is in a small town (about 500 people) that is 5 mins away from a larger town 15,000 people odd. The rental vacancy is low in the large town and hence demand is spreading outward. Rental vacancy is very low in the small town also.
The numbers look good on the property 76% cash on cash return wrapping at $5 below the rent appraisal per week. But I am worried that the property may be hard to move if everything went pair shaped in the future when the property boom is over.
Do any of you guys more experience than me even consider these tyes of properties? Or do you stick to those in larger towns? ie 15K pop and above?
Cheers and happy investing,
Nathan
Nathan i don’t do wraps, but i’d be wary of investing in a town with a population of less than 20,000 people; let alone a town with less than 500 people – that’s a joke.
I don’t think you could seriously consider the potential for capital gains in such a small environment that sounds like it’s dependent on the other “big” town of 15,000 people.
The figures on your property may look good for what you want initially, but i’d be wary of trying to get rid of it in the future as i doubt there will be much demand for a property in such a small town.
Hi Nathan
All you need to do is ask yourself this question:
“Would you buy 20 of these type of houses to wrap?”
I find this rule to be an excellent filtering tool.
Good Luck![8D]
Oscar
Hi Guys,
Thanks for your posts. The common sense and clarity of the next day has kicked in. I hope to be in the position of providing Win Win deals for a while to come yet, so I will stick with my 15,000 plus population rule.
I wasn’t counting on any capital gain from the investment property, but the overflow of rental demand, from the big town. Demographic of the area also suggested that there would be quite a few poeple to help out.
I am sure I would be solving someone’s problem now if I purchased the property, but I may be creating a larger one that would not rear its head for a little while.
Happy, disciplined an unemotional investing for all
Cheers,
Nathan.
Hey AD!
Good to have you back!
Personally I’m up to a whole lotta plottin’, planning and goal setting as I get ready to move to back to Oz (up to Qld for a change!) and start wrapping like a wildman! (or so the plan has it! [
] ). Two weeks and one marriage (to a most wonderfull Canadian []) to go! (April 13’th!)
The areas are (roughly) selected, we’ve been watching houselistings for weeks, LOL! We’ve even selected the charity we’re going to tithe part profits to! [^]Goodbye snow… hello Queensland palm trees…[
]T minus 15 days and counting!….
Quasimodo
__________________________________________________
It seems to me that action has a most magic way of answering
all the questions our fearful mind tries to throw before us…
__________________________________________________Hey Quisaimodo,
We’ll have to catch up when you land in the great state again. Let me know when you are back.Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
] ). Two weeks and one marriage (to a most wonderfull Canadian [
]) to go! (April 13’th!)
]The topic ‘Home Again’ is closed to new replies.
