My Strategy – What do you think?

I just wanted to share a few of my future plans and bounce a few ideas off those of you who have done this sort of thing before, to maybe gather some information and identify some holes in my strategy.

The overall strategy is to accumulate +ve CF properties when equity rises enough to allow it, therefore not impacting on my take home income from work.

As of next year I am planning to have the following situation:

                        Value               Owe               

PPOR              420k                330k

Inv 1                340k                272k

Inv 2                186k                149k

Total                946k                751k

I calculate that for every $1 of equity that builds up I am able to buy $4 worth of property (5% costs & 20% deposit) with 105% borrowing. Please correct me if I am wrong. So if the 946k of property increases in value by 7% then I would have an additional equity o 58k and would be able to purchase 238k worth of property (theoretically). The aim of the purchase would be to come out it  at least cashflow neutral. This would then theoretiacally allow me to purchase another property in a year or so time during the same thing without affecting my take home income. This would then be a self sustaining process – relying on sourcing +ve CF properties.  How realistic is this and do my numbers fit? I have been thinking of using a Buyers Agent to find and negotiate the properties in the SE Qld market. Do you think they would be able to find me the type of properties that I need to make this work? Also has anyone had any experience with the websites offering CF positive properties if you pay a joining fee?

Thanks for your comments,

MB