They bought 3 Rentals in 12 months. All while living overseas…
Started with their own home. Our strategy + Power Teams = 3 rentals in 12 months.
Instead of losing -$18,000 per year, they are earning income from day 1.
Who?
Crissy and her partner moved to Melbourne, Australia. But they still wanted to invest in the New Zealand property market which had better cashflow returns. Plus they knew they’d end up back in NZ at some point so wanted their assets there.
Property details
They joined the Accelerate program and initially bought a rental in Whangarei for $375,000.
Then as their second move they bought rentals #2 & #3 - a duplex in Wellington region.
💰 Purchase price: $755,000
🛏️ Original Configuration: 2 x 3-bedrooms
How did we Cashflow Hack this?
The secret sauce here was adding a fourth bedroom to each of the units.
Original Floorplan
Cashflow Hacked Floorplan
Cosmetic Renovation Scope (per unit)
New Kitchen
$5,100
Replaced flooring with carpet and vinyl
$9,500
New Plaster and Paint
$7,500
Cost to add new bedroom
$5,500
The results
Not only were the results impressive, but the speed - this entire renovation across both units only took 3 weeks!
Purchase Price = $755,000
Renovation = $80,000
Total Investment = $835,000
Gross Yield (rent over / total investment) = 8.1%
Positive Cashflow
If this client were to buy the property and do nothing, they would need to top up the rental by $18,000 every year!
However the renovation and extra bedroom created a significant rental increase, so that it was now bringing in passive income every month.
Future Potentials
Subdivide - They could choose to subdivide and legally split these two dwellings. This would increase the value of each unit.
Cabins - option to add cabins when there is rental demand. This would give a boost to the rental income.
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