CASHFLOW
Overview
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We team up with property investors who wish to increase the cashflow (net rental income after expenses) from their investment properties. There are a variety of strategies we us to achieve this, which depends on the property, its location and the owners goals. They often involve conversion to multi-tenancy, rooming house or short term rental properties; or they may simply involve a basic renovation to increase rental income.
Common Questions We Will Research and Answer
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How much can the net cashflow be increased
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What potential does the property offer for a rooming house, short term rental or multi-tenancy conversion
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What is the rental demand like in that area for the above types
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What local council regulations need to be factored in
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CASE STUDY
Riley had purchased a well-located Brisbane property with his friend Adam as an investment. They both came to us looking to increase cashflow, as the property was currently negatively geared, and it was a struggle for them to continue servicing the mortgage they had over it.
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We explored a few different options with them. Being young and keen to succeed, they opted to go for what would be considered the more in-depth option, being a demolition and re-build.
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With extensive experience around the Rooming House legislation in Brisbane City Council, we assisted them in the construction of a property which can be rented out to 5 separate (high quality) tenants. This resulted in an annual cashflow uplift of on average $80,000. In addition to this boost in cashflow, they have an extra $192,000 of equity after accounting for all costs involved. Riley and Adam plan to use the massive cashflow increase to pay down the debt over this property in the next 12 months, then pull that out the equity to construct 2 more of these Rooming House properties on a double block with our ongoing assistance and expertise. We look forward to working with boys again on this big project!
“Brendan and Nigel were excellent in providing us the expertise and guidance
to complete a goal which we couldn’t have done on our own.
We will certainly becompleting further projects with them in the future.”
