Could this property be cash flow positive??? Listed for $180,000, could probably be had for much cheaper and only needs a handyman for a general "clean up" as far as I can see. It's in Ingham, North QLD, with all the pleasantries of a decent sized town, and only 1 hour to Townsville. Would probably rent for...$250/week???
Tuesday, January 5, 2010
Could this be cf+???
Could this property be cash flow positive??? Listed for $180,000, could probably be had for much cheaper and only needs a handyman for a general "clean up" as far as I can see. It's in Ingham, North QLD, with all the pleasantries of a decent sized town, and only 1 hour to Townsville. Would probably rent for...$250/week???
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Applying a rule of thumb formula from Steve McKight, you would need to purchase the property for $125K at the most.
$250/wk rent / 2 X 1000 = cf+ threshold (i.e. optimum purchase price).
So, I would question whether it is a good buy at $180K. Although not far off a cf+ deal, it may need some work or hard negotiation.
But why would you buy a residential investment in Ingham, not much there except cyclones every summer and no such thing as commuting to work enmasse by country qld'ers.
Happy to hear your thoughts and rebuttals.
The thing about Ingham is have a look at the rental market....they can't get enough stock and rentals are pushing up as a consequence...there is industry here, albeit light, but there is no traffic, plenty of infrastructure and, for most of the year, awesome weather. I think you'd be hard pressed to get sub $180K purchase rice, with $250/week return...just my thoughts....
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