Under $400,000 Investment Property With Granny Flat Potential
This little property is under $400,000 and has the opportunity to add a granny flat and be positive cash flow. Let’s take a closer look at this investment property opportunity.
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0:00 – Sub $400,000 investment property with granny flat potential
1:00 – Walking through the downstairs
1:45 – Looking through the backyard where you could build a granny flat
2:22 – Walking through the upstairs and looking at the renovation potential
4:12 – Simon’s thoughts on the property
5:59 – What would you do if it was your property?
6:30 – Why we like the suburb
7:44 – Special offer – Book a free strategy session
Hey guys, Ryan here from on property and welcome to another episode of on the road today we’re looking at a property that is sub $400,000 in the suburbs of Brisbane that also has granny flat potential, something that you noticed that the front of this property immediately is the drivable side access, so down the side we could fit a driveway down there and so you could fit a car down there and we also have a garage underneath this property as well. So for the people living in the house, they could obviously use that guard. So that’s something that you like to see when you’re looking for granny flat potential. Obviously you need to have the space in the backyard, which is property does, but you may need to remove some trees. But having that drivable side access, having the parking for the front house as well, just to keep those two completely separate would be great.
This property is three bedrooms and as a Queenslander, so underneath is not illegal height, so you wouldn’t be able to technically count those as rooms. But upstairs there are three years, drums and a bathroom. So here we are in the downstairs section and you can see that it’s just not quite legal height, so it doesn’t need to be taller than this to be able to count it as a living space. You can see that in areas like this, they tend to do kind of like awkward spaces. There’s no lights in the walls, it’s just not in the best condition underneath and that’s pretty common in these queenslanders where they just don’t do a lot downstairs because it’s just not worth it because you can’t legally candidate as living space. Simon’s out here, I’m finishing out the inspection report, so pumped on property. As I go through each property, they fill out their inspection reports on an APP on their phone.
They’re often taking photos for clients as well of the different sections. Just want to show you guys the back yard here. You can see there is a shed down the back and a bunch of trees there. We’ve got an old old school hills hoists, but there’s quite a good amount of room here to be able to build a granny flat on this property. You may need to remove some of the trees and also we’ve got, this is the drivable side access that I was talking about, so as you can see, you can easily fit a driveway down there which would then lead to the granny flat, so you’ve got that privacy of access for the house versus the granny flat, so then heading up the stairs now into the main portion of the house. We’ve got our living space here and then we’ve got these beautiful pink kitchen.
Now often in a place like this where there’s huge renovation potential, you can replace that kitchen completely, but there’s so much opportunity in this kitchen for a quick renovation. All of these pink cupboards, you could paint white tiles as well. You could paint why the handles are actually in quite decent condition. They will probably be fine, but just doing something like that, just painting everything in this kitchen would have a huge difference as well. We can see that the wallpaper is ripping out there, so taking that off, painting it white and then through the house and basically is the same situation. You’ve got rooms like this one where you would probably want to put in and built fans, so that’s some old light fittings in there, so getting ceiling fans in each room, especially up in Brisbane is a really good idea because obviously it gets very hot in here, but as you can see in these older style houses, there’s no ceiling fans in any of the rooms, which is a big no, no.
You want to have ceiling fans and so there’s some opportunities or things that you can look for and then just a simple paint job on this baby as well. If we look at the floorboards, we repolish these floorboards as well, so there’s different opportunities for renovations depending on how much you want to spend. If we look at the bathroom here, we can see the old cell toilet and we can see the bathroom in here, so you could obviously completely renovate that or in the short term you could do a quick renovation. Again, paint everything white. What is your friend? You can do that in the short term rented out and then when you’ve got more money to do a full renovation on the property, you could look at doing that then. So we’re in the car now driving to the next property to look at. Just want to do a quick summary with Sonnen on what he thought of that property that we just looked at there.
Yeah, I love that one guys. I know you’ve got a bit of a walkthrough. Always head down into my, my little checklist, making sure that I can get as much information, information about the property as I possibly could for one of our clients. And um, yeah, what I really loved about that one is a small cosmetic upgrade. You could probably spend 10, $15,000 on that one and increase the rent for him. It was tenanted for $360 a week. You can probably increase that over 400, 420 with a 10 to $15,000 upgrade, which is pretty awesome. Um, maybe just polish the timber floorboards, paint the interior, replace the light fittings, replace the blinds, maybe add some fans to the bathroom and it would appear it really, really nice. Um, you could even go a little bit further than that in the future if you want and continue to build in downstairs.
I know it’s not legal height, but you could still maybe put something a bit more desirable down there. Then just an open space. The site access was huge as well, so you could easily put down a second driveway, um, and have access to the backyard if you were to add a granny flat in the future. And I know there was a small amount of landscaping required, bit of tree lopping to get that granny flat in there, but those sorts of things that have pretty frequent and um, you know, people are always going to have trees in their backyards. So those types of things you’re going to always have to take care of. But, um, I say that is a really good opportunity to that really strong positive cash flow. And so do you think that opportunity would be to build a granny flat? Would a client of yours luckily purchased that and then build a granny flat down the line? Yeah, definitely. I think that would be a really good option. Um, maybe not immediately but maybe a little bit further down the track. So if it were my property I would get in there and do that small cosmetic renovation to increase the cashflow and the desirability of the main dwelling and then hold onto that for a small amount of time and maybe come back and add the granny flat in a couple of years or something.
Yeah. So as you guys can see that’s a real bread and butter example of a granny flat opportunity property there that was under $400,000 in the suburbs of Brisbane,
far away from the CBD. That one was bad, 19 kilometers from Brisbane cbd a day. It was about a one to two kilometer drive or bus ride to the train station. And why don’t you get to the train station is probably about it. Thirty five, 40 minute train ride into the CBD. And the area itself was a mix of owner occupied homes as well as rental properties. I would have said about 70 percent of those properties would have been owner occupied in that street. Um, you also had the park at the end with the football fields and things like that, which is which, which is really nice for those young families.
So as you guys can say really cool and I was going to say unique opportunity, but it’s not really unique opportunity. We’re going to say a lot of those properties today where it’s just a good solid house at the front that you have an opportunity to manufacture some growth on the way in, increase the rental yield as son and said. And then you’ve also got the opportunity to build a granny flat in the back in order to generate that cashflow down the line. So if you’re interested in finding more of those properties and learning about the two property to financial freedom strategy than Simon and the team over at pumped on property are offering free strategy sessions to you guys. So head over to on-property dot com dot EU. You can book a free strategy session over there that’s really to talk about your situation, where you’re at now, where you want to be in the future, and what are your next steps to get there, so silent or one of the team will help walk you through that and get you really clear on what exactly do you need to achieve your financial goals.
You can then go onto work with pumped on property and get their help to buy properties like that like we’re doing today, inspecting those properties for clients or you can go out and do it yourself. That’s absolutely fine. So go on property.com dot a u to check that out and book your free session over there or while you’re here, go ahead and check out this other one that I looked at with crystal, which was another great granny flat opportunity. So you can say that there’s just so many of them out there at the moment. If you find the right suburb, if you find the right property, they just some great opportunities here. So thanks so much for watching guys. Until next time, stay positive.