[Deal] Off Market Purchase + Strategy: Growth + Cashflow | Property Twins™
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In: Property Investors0

Client Background: Ben and Lyn are corporate professionals who were looking to start their investment property journey. They had already done a home purchase and had sufficient savings to ‘debt recycle’ against their home debt to buy their first investment property.

What was important to them: Ben & Lyn wanted to buy a set and forget property that would be in a growth area for the longer term to enable their future lifestyle goals. It was good timing to ensure they entered the market and took advantage the rising tide in the property markets.

Rental vacancy is also at record low and the current market rent would have the property positive cashflow, with a shift towards neutral cashflow given the recent rate rises. Rising rents would help them hold the property without much cash outflow.

The property was purchased off market leveraging Property Twins connections and relationships with agents. As such if the property went on the market, in a hot market with multiple offer situation, it would have sold for sub $600k, however we were able to secure this listing for $550,000, negotiating a further $3,000 with minor items found during building and pest inspections.


Here is what they purchased as part of the Property Twins Buyers Agency

Property Type: 4-bedroom, 2 bath, 2 car spaces house on a sub 500sqm block in SE QLD
Purchase Price: $550,000
Market Rent: $550 per week
Rental Yield: 5.20%
Vacancy Rate (Current): 0.7%
Cashflow: Positive

Strategy – Growth + Cashflow

Current Value: $600,000
Capital Growth: $50,000 in 7 months

Metro / Regional: Metro – 30.7 km / 30 minutes’ drive from the CBD
Renovation Required: Minor fixes required

Due Diligence Completed:

  • Leveraged qualitative & quantitative factors to determine location, type of property, cash flow and risk-based analysis to zero in on the right property.
  • Discarded lemon deals presenting hazards and high risk (avoiding key mistakes)

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