It kind of came out of nowhere, so to obtain the property I got a conventional loan for 80% -- then used a line of credit I had on another property for the 20% downpayment -- and finally, about $100K of my own cash to remodel the house (it was in very bad shape). 

Sounds like this is going to be a continued trend.

You might be in better shape if you bought something with a greater margin of safety built in and improved it efficiently.Good luck and feel free to reach out if I can be of assistance in any way!

I spent alot of had earnt cash on somebody elses property that added value to. i didnt have any plans for the future but i knew id find something that would create the freedom i wanted. im 37 now and want to get into the real estate world.Ive been away from australia for 10 years and havent been able to follow the market trends but i know the interest rates are below 4% but house prices have increased significantly.For example i bought my land for 90000 and built on for 120000 now a block of land the same size is around 300000 and the median price for a house in my area is 420000.So i have equity that i could re invest for.

@William Chrisman there are many things to consider but the big ticket items are:@ property management fees@ salaries@ utilities @ insurance @ repairs & maintain@ admin & advertising @ reserves (I usually use $300/unit/year unless the property is older or in bad shape)@ property taxes (based on PURCHASE price and not current costs)All that does not include initial rehab budget if needed. 

I warned one set of tenants and they shaped up once they realized I was watching. 

I find that having them in fully renovated shape pulls the extra numbers.

They are in such bad shape and high price, not even investors are interested. 

The front house is in great shape, needs just carpet, paint and appliances for the kitchen.

If this is a trend with this particular complex, a buy and hold strategy may not be the best option for me.