FPI

Deal Two

Now i own a REAL house! This is the second peace of real estate i bought in my 10 year goals (2008-2018). On my mission to acquire one million dollars in real estate and substantial positive cashflow. I actually spent none of my own money to purchase this house.

This deal came about in a bizarre way! But when it did i took action on it like lightning! Man 10 minutes after i seen this add in the paper i was in the car and heading out to it and offered shortly after and then into the bank to show my bank manager the first thing on Monday. I submitted a blog post soon after.

Basically the short story that goes with this property is i (my mother) seen an add in the local paper. After we discovered a project property on inspection is suited me more then perfectly… in my own thoughts and mum was happy with it to. It was brilliant numbers wise! Maybe not brilliant to look at by some others. But beauty is in the eye of the beholder and what brings joy to you and entertainment.

A local respected old bloke had spent a reasonable amount of money on this in his retirement. Nothing flash but he had upgraded with a new roof, a big slab or concrete pored at the back door and to outside into the yard and around the shed, a new veranda had been recently installed and painted as well as a rear veranda. Everything in the place was functional but it badly needed new plaster inside throughout. This is what was putting off some people i think and the reason it was priced relatively low to other houses.

I submitted an offer that day. The first offer was rejected and the second offer… the full asking price was accepted that day at about 7pm. It has not lavish amounts spent on this house but the previous owning had been plodding along doing some major works to it and was half way through doing the place up again with an upgrade. Till he got cancer and died. A lot of value will now be added for very little spent by just finishing off the man’s project. But their is a fair bit of plastering and general repairs throughout! The whole place has been recently rewired so that was a bonus to the purchase as well.

The place will be my first Principle Place of Residence. Over the next 6 months i will completely gut the whole old interior horse hair plaster from inside every wall and the ceiling. I will replace old wooden windows with new aluminum windows and paint. Install a new laminated flooring throughout and tidy up the yard, trim and cut trees, grass, edging etc. then rent the property.

The neighbors are going to hear some hammering going on! If i rented the property from day one it would be positive cashflow. But my strategy is different to that for this particular property! I want to renovate it to add value and pull the that equity out. That does not mean i would apply that strategy to this sort of property always. I am applying a very specific customized strategy with every variable specifically tailored to my property portfolio position now, including financial position, general market conditions etc.

This was the sign on the front door of the house on arrival to inspect :).

This video is a walk around the place at the time when buying it! Sorry, there is not much audio in this video. I just quickly filmed it as it was first bought to get some images of it as it was.

This is a video of mid renovation after the old horse hair plaster and tongue and groove boards and hundreds of nails and carpet we’re removed from the interior of the building. The next stage is to begin plastering.

It was not that long ago i did not have a shirt to wear. Not only did i not have a t-shirt to wear, i had ziltch, i did not have any clothes at all or anything else. The very last red cent i had in my Van was stolen too. I literally had a red cent and somebody stole that as well. How low is that? Just over two years on. I now have two properties. One an investment property and the second my Principle Place of Residence. This is a short story about the t-shirt thing. The only thing fun about this was rolling through the major shopping centre on an oscillator with a long white hospital gown on :).