Lisa & Shane – Greenfields, WA
Real Estate Rescue Graduate
The Background
This was Lisa & Shane’s first deal. They found it on the market whilst doing inspections. Upon speaking with the agent, Lisa & Shane learnt that this property had 2 previous offers fall through. They were able to make an offer that secured the deal. The property had very good bones but had been neglected by renters, so Lisa & Shane commenced renovations, with a plan to rent then flip in 1-2 years.
The Number
These costs include the purchase price, stamp duty, holdings, renovations, and relevant adjustments, including the selling costs.
| Expense | Cost |
|---|---|
| Purchase price | $215,500 |
| Planned Selling Price | Projected selling price $310,000 |
| Estimated Rental income | $300 – 330/wk (7.5% yield approx.) |
Current Renovation State
Backyard
Living Area
Bathroom
Kitchen
Top Learnings:
- Double check your figures – accidently deleted a major kitchen reno line item when playing with the figures – this is a splat that we have to claw back in other areas.
- Be open to different strategies – the Covid-19 situation meant the bank was willing to sell quickly after previous deal had fallen through (dropped price further $20,000). Flip side is current unknowns for market when trying to sell back out.
- Keep relationships with agents going all the time – mortgage bank wouldn’t allow access conditions, but agent allowing some trade quotes via lock box arrangement.
