I am considering purchasing a property 8km from perth cbd 764sqm block 3 x1 1950's house which i can easily convert to a 5×1 giving me a 6k positive cash flow after all expenses. I would be looking at a long term investment.
I am a little concerned about prices dropping in the future which makes me hesitate to buy now but to wait 6 to 12 months but this does seem to be a unique opportunity
what do you think
thanks for you comments
etty elf$6,000 +CF doesn't seem like very much for all the effort required to:
1. convert the property from 3 flats to 5 flats and
2. manage 5 different single tenants randomly leaving at their whimWhat type of tenant are you going to attract to a 1-bed flat? My experience would put money on the tenant pool not being of the highest calibre!!
How readily available are these tenants wanting to live in a 1-bedroom flat in a big converted house?
Surely that investment money could be better utilized purchasing a couple of nice single 3-bedroom family homes which will:
1. be easier to sell when you want out
2. be way easier to tenant today, with a larger pool of people looking for such homes (1-beders are never the highest demand property anywhere)
3. have less damage due to a higher calibre of tenant….you get my drift!!
Vicky
The property is a shared house (not single bed flats) near a university so good tenant's are easy to come by and the conversion will only cost $200 as I can do the labour for free. I want to stay in Perth as then I can do any property management and maintenance to keep holding costs down (you don't get 3×1 for the price you- suggest in this area ) . I noticed your link takes me to nz but a 6% drop in house prices and a recession doesn't sound like a good place to invest to me but thanks for your comment
Hi Etty
Where is the property, is it in Bentley?
Is there an option to build another house in the backyard given the block is reasonably big?
6K +ve cash sound good to me
Vidy
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