D
dan73
Guest
Hello,
I have been owning a few individual apartments in low-income areas for 5 years, renting them to social welfare support recipients and I have learned to manage them well (after a few initial difficulties, due maiinly to my inexperience). I enjoyed it, and I have developed a great relationship with my tenants/customers, which in turn keep referring me new tenants and in turn my vacancy rate is extremely low (<1%/year).
Now I feel I am ready to get on bigger deals, such as a multi-unit investment property. I do want to stick to residential (no commercial) property.
Assumption: I am an online marketing professional, and my websites (which I consider online real estate investment), produce me a 50% ROI/month, fully on autopilot, so if I do get into a multi-unit, then the lower gross yield I would consider is 10% (total rents/purchase price+stamp duty)x100
I would plan to increase that yield with financial leverage, so that I could get in the range of a 30% cash-on-cash return.
The reason I am still interested in offline property investment is because I like to diversify, but still going after passive income.
These are the questions I have for you guys/ladies investors:
1) how to negotiate with the seller in order to get to my target yield: which strategies have you used?
2) I am aware that to get my target yield, I will have to invest in a low-income area. I am keeping an eye on D1/D7. Any thoughts?
3) any other input you want to give is much appreciated.
thanks and i wish you all a great sunday!
Dan
I have been owning a few individual apartments in low-income areas for 5 years, renting them to social welfare support recipients and I have learned to manage them well (after a few initial difficulties, due maiinly to my inexperience). I enjoyed it, and I have developed a great relationship with my tenants/customers, which in turn keep referring me new tenants and in turn my vacancy rate is extremely low (<1%/year).
Now I feel I am ready to get on bigger deals, such as a multi-unit investment property. I do want to stick to residential (no commercial) property.
Assumption: I am an online marketing professional, and my websites (which I consider online real estate investment), produce me a 50% ROI/month, fully on autopilot, so if I do get into a multi-unit, then the lower gross yield I would consider is 10% (total rents/purchase price+stamp duty)x100
I would plan to increase that yield with financial leverage, so that I could get in the range of a 30% cash-on-cash return.
The reason I am still interested in offline property investment is because I like to diversify, but still going after passive income.
These are the questions I have for you guys/ladies investors:
1) how to negotiate with the seller in order to get to my target yield: which strategies have you used?
2) I am aware that to get my target yield, I will have to invest in a low-income area. I am keeping an eye on D1/D7. Any thoughts?
3) any other input you want to give is much appreciated.
thanks and i wish you all a great sunday!
Dan