All Forum Posts by: Robin Brown

Thanks so much for the tips team!! Much appreciated!!

So my partner has a tenant in her flat, she also self manages the apartment herself. Recently the tenant wanted to negotiate a new deal and go month to month with a reductions due to COVID stuff down here in Melb.

The contract was these two options.

Stay on a 6 month lease for $320 pw

or

Month to month at $340 pw

Tenant has taken month to month - It has been 4 months. The tenant has now decided she would like to stay until Jan or longer. And wishes to pay $320 in rent instead of $340 and would like to be reimbursed the 'extra' she paid the previous four months.

Obviously I feel that's a bit foolish as just because you have changed your mind you signed at that price, a new lease will now need to be signed and negotiated but no reimbursement.  How would you handle this situation?

Thanks so much!!! I will look into the projections but I think the cash-on-cash return will be the best idea when trying to find which of the properties will be ideal profit wise.

Hey all. I am still very new and have not made any purchases yet but our state Gov. has opened up a new grant for first home buyers. This looks to make things possible to get a small 2bed apartment to start the portfolio. (must live in it first and hope to only live for a year before moving to a home for my partner and myself)

Anyway I am trying to sort out an excel spreadsheet that has 
- a list of properties
- what they are listed for
- what I would like to get them for
- rent
- rate costs and extra expenses
- loan repayments
- monthly and yearly income
- and ROI

I am just having a bit of trouble understanding how I work ROI out.

My first example is 50k of my own money with a yearly return of $1872

Do I do 1872/50000?

@Craig McLaughlin ooooo golly, that will rack my brain and I have been inundated with finance books. It might have been one of the Rich dad Poor dad ones, potentially one rental at a time, or maybe one of my share ones like Buffetology.... I have just read so many these last months sorry I can't be of better assistance. 

I have read in quite a few books that these gov retirement funds wont ever generate as much as if you took control of your own investments and also you don't end up paying the yearly fees to have your 401K (super for aussies) managed. This does of course mean you need to actually educate yourself on what to do with it, whether shares or realestate or small business. Otherwise it's just gambling anyway. If you don't have the time then these retirement funds work.

I have since stopped adding extra to these and started my own investment journey and education - I have a very long way to go.

@Jay Hinrichs Ooo this is excellent! Looking forward to hearing from another Aussie around here!! And when I get to his Podcast!! Thanks for that I will totally look out for any of his posts/content!

@David Krulac That is incredible. I have just started plodding through the BP pods, I think I am starting ep 6 today. Still a while before I get to #86 but I look forward to that.

I guess that is one of the major differences in the market though down here in Australia. My partner's single bed apartment is worth 340kAUD. Which isn't worth selling as it's almost at the exact same value it was when she purchased it 7 years ago (320K)

I did a quick search of some properties in some country towns with populations under 5k and the best I saw was to buy the land only for 65k.  Then I looking into the smallest town in Australia which had a population of 250 (now only 4) and surrounding suburbs I found a full house for 81K. But as far as becoming a rental it seems a bit far fetched with such a low populations.

Here in a suburb of Melbourne, possibly 30/40mins from the CBD by car I might be able to get a townhouse for 500K possible a multi family home for maybe 1mill if lucky.

@Jason Shackleton I guess I need to learn more about good debt. I guess the good debt is a higher risk reward on the rare massive housing market crashes (which is something that doesn't seem to affect property in Aus - we have been rising for the last 25 years).

@David Krulac Woah that's insane!! Surely you would have a team behind you. I hear about all this 100% financing which is something I am trying to grasp my head around slowly, as Australian Properties (in Melbourne) are a little ridiculous. A small 3 bed flat (one of 10 on the property I think) that we had been watching closely just went for 880K - around 640kUSD. So getting 100% finance I am sure is possible here, but need to do more research if there is actually a way to also get it to produce positive cash flow. Not keen on taking a property that I have to feed each month.

I guess my goal is to have some income producing properties that myself (partner) can self manage, I already run four small businesses that I am trying to grow and really love working on. 118 properties would be a HUGE cash flow generator for sure but I think it would chew away time from the businesses I would love to build and fall in my overall passion :)

What is everyone preference regarding having the option to own a handful of properties out right verses having a much larger portfolio with the debt that comes with it? Or do some people opt for a mix of both?

I assume the debt should always be covered by tenants however more is needed to to gain the cashflow from a handful outright.