Development investmentquerie

Hi all, I am a newcomer who happened to find the site and am very impressed. Am flying solo apart from all the information i have crammed in and this is my scenario.

I require Cash positive investment

Found a Development opportunity in Queensland asking price is $820k ( for an existing house and land with subdivision approval for 5 separate blocks + existing property )

Appraisal value is $1.35M
I have every indication that I can borrow $1million on this property

Now there are many scenarios I have gone over but I believe my least risk option is to purchase and sell almost immediately the five vacant blocks @ aprox $850k ( and yes I have a potential buyer )

Not being overly familiar with the all the tax implications and the fact that I would want to sell immediately the capital gains issues.

This would leave me with a large home in an area with a rental vacancy rate less than 2% near all amenities with expected rental income of $350 – 400 per week ( I would like to provide gardens and maybe housekeeping, a way of protecting property due to the nature of expected renters )

So basically subject to finance and valuation.

Property valued at $1.35M
Borrow $1M
Asking price $820K
As far as I can ascertain closing costs in the vicinity of 60K with stamp duty / legals

Potential immediate sale of vacant blocks once i have ownership aprox $850K

Leaving me with a debt of aprox 150K and any other penalties taxes or whatever
and a potential rental income of $400 per week

My safety net of $120k if all goes to hell in a bucket leaving me a 50 week breathing space (being able to repay loan until sales went through ) and if all goes to plan $120k to put to my next project.

Any advice and opinions gratefully apreciated

M – Qld