I just finished reading Steve’s book and was very excited to have my own views on positive cash flows reinforced.
I wasn’t so excited though when I tried to use the 11 second rule and do the numbers on positive cash flow. Seems real estate has just about doubled since Steve wrote the book in 2003 and a lot of his math doesn’t apply now.
I’ve been searching the forum for current (eg 2005/2006) examples of positive cash flow – I’m interested in the 1 bedroom apartment route which would seem to offer some of the best rental returns for least investment (and lower capital gains) but even they seem marginal CoCR investments.
Getting $30 to $50 pw positive cash flow seems impossible now with average house prices at $300K and rental less than $300pw.
I’m very keen to do something but I’m still looking for good numbers.
I’ve read John Burley’s book and was interested in Wraps but they too sem to be a less attractive option given the cost of a mortgage versus renting.
Any advice appreciated.
Regards
Dean Toovey, ACT
don’t think you will find them in city areas. In 2006, manufactured equity and cashflow. (lease options, wraps and developing) is the go!
We buy properties in Adelaide. No Agent Fees.
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INCREASE THE CASH FLOW FROM YOUR INVESTMENT PROPERTIES!
http://www.renttoownau.com/ http://www.vendorfinanceau.com/Thanks for that. Is there anyone from the ACT who has attended one of Steve’s Masterclasses and wouldn’t mind telling me how they’ve been able to apply what they’ve learnt?
Hi
You should read Steve’s second book, as it applies to the market today and offers great ways to work with the market so that you create cash flow positive properties.
Good luck,
Mapleleaf
Achieve the Dream!
Steve’s Strategy IMO is “Constantly Evolving”..have a look at whats happening now…
As usual DrX has some good ideas as well
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi,
I am currently reading Steves 2nd book and agree the Buy, Rent, Hold strategy is extremely difficult to come buy, you still may find the odd one in a wayout town.
In the current market other than parts of WA, Steve’s suggestion is to create more deals on a short term, rather than long term. More like trading property through the strategies that DrX has mentioned.
Conducting some research into these strategies and focusing in one that appeals to you maybe a way to start. However all the theory in the world doesnt account for the practical expereince you gain by giving it a go.
Good Luck
mulder
mulder
Thanks for the advice – I’ll check out DrX, DD and a few others.
I also spent a bit of time in Melbourne at Metropole seminars looking into dual occupanices and multi-unit developments. Has anyone done their course and started doing this kind of development?
I agree that it is increasingly difficult to find cashflow positive ( to our liking anyway). We have just signed though on 2 units renting at $225 per week for $174K. Yes they need some work, but at least the is no body corp costs to eat into the rent.
Certainly not the reurn we have got in the past on deals, but not too shabby these days, especially in aseaside location which is booming.
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