Getting 4 Incomes From One Property (On The Road Ep1)

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In this new series “On The Road” I take you to look at a unique property that will deliver the investor 4 separate incomes.

Transcription:

There’s some amazing investment opportunities out there. If you’re just willing to look hard for them. In this episode, I’m going to show you one unique property that will actually deliver the investor four separate incomes once all the work is done on it. Hi, I’m Ryan from onproperty.com.au Helping you achieve financial freedom and welcome to my on the road series, a brand new series that I’m doing where I hit the road with a buyers agency team from pumped on property. I went on the road with Simon, with Adam, with Kristal, the full team minus band. And we went down to Brisbane and looked at a bunch of properties down there. Some of those properties were properties that have already been bought for clients. A bunch of them were new properties that they were looking for, clients who were trying to buy.

And we basically walked through some of these and talk about the different opportunities that are out there. And this will just give you an epic insight into the fact that yes, there’s still investment opportunities out there despite what’s happening in Sydney and Melbourne. There’s a lot of opportunity in Brisbane and it was a really fun day. We started the day with our double shot coffees, which is how we should start every day. I’m already had my double shot today and I’m now on the v while I do some editing, but we had a great day driving down. Let’s jump into this first property that we looked at where we, we’re doing a presettlement inspection and Simon’s gonna talk us through the opportunity and it’s just gonna explode your mind. Hey guys, Ryan here from on property. I’m on the road say with Simon as well as Kristal and Ads. We are just currently at one of the properties doing a pre purchase inspection, pre settlement inspection.

Yeah, just making sure that everything is, is aok before settling on the property. There was a few things that came up in the building and pest inspection that we wanted to get sorted. So just making sure that those things are tested, but glad that we could get through this one today on camera because it’s actually a really great opportunity for our clients. So he actually only purchased it for $650,000 in a beautiful part of Brisbane, only about 12 kilometers from the CBD. He actually picked it up for 650 grand and this one’s on a massive 810 square metre block and it’s actually already on two titles so we can subdivide it and put two different buildings on this block. So really good opportunity. Let’s go for a bit of a walk through that. Yeah,

definitely. So how do you find that out? That it was on two separate titles? Um, it was just advertised like that,

the advertisement. So the real estate agent had to tell us that one. All right, you lead the way. Where are we going? Let’s get it through the house. Alright, cool. So as most houses in Queensland or Brisbane in particular, this is a raised house and semi built in underneath, so unfortunately isn’t legal height, so you can’t legally count the bedrooms and bathrooms and the kitchens down yet. But that’s kind of normal up here. So when they all deal with like 30 40 years ago, they didn’t actually raise them to a legal height where you could count this living space, kitchens and stuff down here, which is a bit of a bummer because they’re only about less than 10 centimeters off being legal height and you still can’t claim it, but sometimes you can raise them and build them in underneath and that can be a really good opportunity.

Converting a three bed, one bath into a five bed, two bath or something like that. So yeah, it’s nice one. Alright, so here we are out on the deck and the backyard. So where’s the other. Where’s the subdivision? So. Oh well it’s, it’s just on two separate titles, but there’s no sub dividable block. So it’s on two separate titles, but the house is on the whole entire block. Across the two titles. What’s the opportunity there? If the house exists across the two titles, can you really subdivide it? If the house is on both blocks? What are you going to have to do is actually knock down the main dwelling and rebuild to new home. So you’ll subdivide. There’ll be 405 and another 405 square meter block. You can’t really say it, but in this particular area because all the blocks are quite large.

There’s so many opportunities like this. I think the house next door was, yeah, it was quite similar. So they’ve actually subdivided it and then we can see behind us as well that we’ve got a bunch of townhouses and stuff. Yeah, exactly. So it’s something that’s occurring around here at the moment? No, none of the houses around here really new. They’re all 30, 40, 50 years old except for the ones that have been purchased, subdivided and rebuilt on. So it’s a. it’s a beautiful suburb. It’s really nice. It’s in the hills and I just love the opportunity out here at the moment there’s so many massive blocks that you can get into it, at affordable price and if you have good contact with builders and developers in town, plan is. You can actually go out there and knock this down for about $20,000. Build two new homes.

You can either hold onto both of them and you’d be getting about $1,500 a week in rent or you could hold onto one sell off the other to try and reduce your debt, theres’s so many ways. And you know, this is, this is what we love. So this is opportunity to get two incomes from one property, but it isn’t very standard. It’s not like you’re buying a block of land and you’re building a dual occ or you’re building a granny flat or something like that. It was a little bit different to that. It’s a unique opportunity that exists in the market. You just have to hunt for it. Exactly. And these things don’t come up all the time, like don’t think you can just go out there and do this for your first time. Um, this is a very unique opportunity and of course we try to jump on it as soon as we can.

And you talk about the dual occ there. So the plan for this one is actually to get 4 incomes from the one piece of land. So he’s going to knock this property down that we just did a walkthrough, it was a bit of a weird one in there, but knock that down, build two brand new dual occupancy home. So that’ll be a three bedroom, two bathroom house with another two bedroom or one bathroom, two bedroom, one bathroom or one bedroom, one bathroom under the same roof line. So two of those which are going to provide them with really good cashflow. He should be able to manufacturer six and a half, seven percent yield.

Yeah. So that’s awesome to get 4 incomes from the property, from the one property and this, as you guys saw with the walkthrough, this just looks like an old house. So if you didn’t have your finger on the pulse and didn’t know that this is such an incredible opportunity, but it can be. Imagine having four incomes which then probably put you in a positive cashflow situation. Definitely. And then obviously if you want to pay those off over time then that could be financial freedom there. Just in this one block. So

after all four of those dwellings have rented out, he’ll be getting around $1,500 a week in rent. So like that’s insane. That’s in 2018. Yeah,

and this is one of those opportunities as well that it’s not just positive cashflow, that there’s, we’re in a good suburb with good future growth potential as well as well as potentially manufacturing growth by doing the subdivision and by doing the build. So you’re looking at cashflow, you’re looking at capital growth longterm and you’re looking at manufacturing growth, which is what we’re all about. You want to make money in as many ways as possible and that way if one of those ways doesn’t quite work out, like if the suburb doesn’t grow as much as we thought. We use manufacturing growth and you’ve got cashflow. That’s exactly right. Or if the manufactured growth doesn’t work as well, you’ve got the growth of the suburb and the cashflow. So

it’s what we call a home run. I think He’s nailed all three, the three major aspects when everybody should be, that everybody should be focusing on with any investment.

Wow, so I hope you liked that. It was really interesting to walk through that property. Obviously it’s quite a strange layout. These high properties in Brisbane, I’m on the sunny coast here and there’s not a lot of those high set properties around here, so we went through a lot of properties in Brisbane and they’re not legal height underneath, so it’s kind of bizarre how they half renovate them anyway. Really unique opportunity in this property with the property being built across two separate blocks of land. Apparently it’s going to be quite easy to subdivide those blocks. They don’t have to go through the standard subdivision process because there’s actually already two titles that are going to make it easier and cheaper to subdivide. Then obviously after they knock it down, build two brand new dual occ properties you’re looking at 4 incomes from the one property. If that person then goes and pays those off, over time, all that income could potentially be going into their pocket after expenses, obviously, but that one property alone could deliver someone a base level of financial freedom, so pretty exciting opportunity there.

Also love the flexibility of that opportunity with the fact that after the subdivision and the build, you could sell off both of them. You could hold both of them. You could sell off one to pay down debt and reduce your risk across that property. You can manufacture. Growth is in a good area. You’re getting the cashflow as Simon calls it. It’s a home run, so really exciting opportunity. I hope you liked this episode of on the road. If you did, please go ahead and let me know in the comment section down below on Youtube. Give this video a like as well. Your feedback will determine what sort of videos we make in the future and if this series becomes a regular thing, if you’re interested in working with pumped on property and seeing some of these unique opportunities for yourself and actually getting their help to purchase them.

As you could see, we were there doing the presettlement inspection, not the person who actually purchased the property, so we went on the ground doing the work for them. Well, I wasn’t doing the work the team have pumped was I was just making a video, but they’re a great team over there. If you want to learn more about them, they are offering listeners of today’s episode, a free strategy session with them. Go to onproperty.com.au/session. I’ll leave the links in the description down below, but onproperty.com.au/session. You can read more about that over there. You can do a one hour on the phone session, talk through your situation where you’re at, where you want to be, and what steps you need to take to get there. Then obviously if you want to work with pumped on property, you can go ahead and do that or if you don’t that’s totally fine as well.

You still get that free session, so go ahead, check that out. If you want to work with pumped on property, let me know how you like this series and if you did like this episode. Then I’m going to link up here to an episode that I did on the same day with Kristal where we look at a granny flat opportunity. Now when this is published, that video won’t be live it’ll take about a week, but it should be up there and I will link to it in the description down below as well. Thanks so much for watching. Until next time, stay positive.