Hi guys,
I have done a lot of book reading over the last six months nad just stumbled on to Steve Mcknight and his two books in the last couple of weeks. In addition I have started to surround my self with people who are interested inproperty investmnet to try and educate myself.
On flicking through these forums I have sought the answer to my current set of questions.
I have found a property with two buildings on it that needs some work, but I think that if I buy it that it will be CF +.
However it would take some time to do the work to get it into a position that a tenant would live in it.
The figures are:
Purchase price $100K. Both properties are relocated homes with some works undertaken since moving.Building 1 (16squares) needs a front veranda/steps, an internal paint, some kitchen work, bathroom tiled, stormwater “done” and removal of the septic tank.
Rent could be $140/wk with bathroom and stormwater.
Property 2 (may be 5-6 Squares) requires ceiling repaired throughout (roof is new), some weatherboards replaced
House. House is 4 room building and 1 room needs to be completly converted into kitchen/laundry/bathroomRent could be $100/wk
As I am new to this dance, I dont have anybody who knows the steps in practice. What I want to know is, I have the money (I think) to purchase but not to repair/ renovate.
In addition, repairs/ renovations and tenating is going to take more than a couple of days.
How do I get all this doneand get the CF coming through the door on day 1.
Is it possible to buy but let the bank finance cover Property 1 and land with building 2 “thrown in” and then borrow against building 2 to finance the deal.
What about lag time between works commencing and rent coming in. How could I fund that?
Also, how do I get a tradesman to go and look at a property that I am trying to purchase (ie hasnt he got better things to do than quote jobs that may never happen?)
I look forward to your replies.
Wide Mouth Frog
Originally posted by widemouthfrog:Hi guys,
I have done a lot of book reading over the last six months nad just stumbled on to Steve Mcknight and his two books in the last couple of weeks. In addition I have started to surround my self with people who are interested inproperty investmnet to try and educate myself.
On flicking through these forums I have sought the answer to my current set of questions.
I have found a property with two buildings on it that needs some work, but I think that if I buy it that it will be CF +.
However it would take some time to do the work to get it into a position that a tenant would live in it.
The figures are:
Purchase price $100K. Both properties are relocated homes with some works undertaken since moving.Building 1 (16squares) needs a front veranda/steps, an internal paint, some kitchen work, bathroom tiled, stormwater “done” and removal of the septic tank.
Rent could be $140/wk with bathroom and stormwater.
Property 2 (may be 5-6 Squares) requires ceiling repaired throughout (roof is new), some weatherboards replaced
House. House is 4 room building and 1 room needs to be completly converted into kitchen/laundry/bathroomRent could be $100/wk
As I am new to this dance, I dont have anybody who knows the steps in practice. What I want to know is, I have the money (I think) to purchase but not to repair/ renovate.
In addition, repairs/ renovations and tenating is going to take more than a couple of days.
How do I get all this doneand get the CF coming through the door on day 1.
Is it possible to buy but let the bank finance cover Property 1 and land with building 2 “thrown in” and then borrow against building 2 to finance the deal.
What about lag time between works commencing and rent coming in. How could I fund that?
Also, how do I get a tradesman to go and look at a property that I am trying to purchase (ie hasnt he got better things to do than quote jobs that may never happen?)
I look forward to your replies.
Wide Mouth Frog
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