15.17% YIELD, 10% VENDOR FINANCE, 10 UNITS ON OWN TITLES

Listing Number:  1168
Posting Date:  11 September 2008






 
Price:$1.2M incl GST and finders fee
Listing:15.17% YIELD, 10% VENDOR FINANCE, 10 UNITS ON OWN TITLES
Type:Unit/Flat
Category:Assignment
Bedrooms:2
Bathrooms:1
Region:Otago
Site Area:560 m2
Address: Login
Building Area:1192 m2
Property Image

Description:

10 units on own titles within easy walk to the CBD and Queens Park (Botanical Gardens). These units are in excellent condition and have been used as motel accommodation but can be sold separately or operated as 10 x rentals. Invercargill has a thriving economic outlook and demand for rental accomodation is good. These fully furnished units, some with 2 x double bedrooms make ideal rental units and property managers have appraised the rent at an average of $380 per week for each unit - I have used $350 for the calculations - see attached appraisals. I have a 2 bedroom fully furnished unit in Invercargill and it rents for this amount but these are closer to town. All units have open plan living, dinette or kitchen and separate bathroom; with access to the unit by ranchslider from your balcony area. Chattels list is extensive.
Currently there is access via two driveways. To separate the managers house from the units just requires a fence to be erected and costs could be shared - cost would be approx $3000 and halved if agreed by neighbour. To provide separate power meters an estimate of $200-300 per unit has been given. There is also a separate 30sqm shed located next to the ample parking area that could house a launding area for the tenants if required and you could rent out storage space providing extra cashflow. 3 x washing machines and 3 x dryers would cost approx $3200 total.

The vendor is prepared to leave 10% vendor finance in the deal. As an investment this stacks up nicely.
PP - $1.2M (inc GST and finders fee)
Rent - $3500 pw, $182000 pa
Yield - 15.17%
Rates - $8876.10
90% Loan - $1012500 @8,5% IO = $86062.50 pa = HUGE Cashflow!!!

UPDATE:
Vendor Finance: Vendor prepared to leave VF of 20% in for 5 years at current floating rate.
Manager: Agent has just informed me that there is the possibility that the new manager/owner of the home and 4 units (Operated as a motel) next door could manage the 10 units for you. This provides an onsite manager.
GST: If this property purchase did not require GST to be paid then that cost would be deducted off this 1.2M price - to be clear.

Contact Tua Atkinson on 0212624179 or email tua.atkinson@gmail.com



Additional Documents:

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Description: Titles
File Size: 546 Kilobytes
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Description: Power Meter Estimate
File Size: 73 Kilobytes
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Description: Rent Appraisals - Serviced and Unserviced
File Size: 119 Kilobytes