Multiple strategy & Instant equity and positive cashflow deal

About the client: Single young professional who wants to start building on a property portfolio at a young age while working two jobs in nursing, using creative strategies.

  • Location: Hunter Valley, NSW
  • Land size: 850m2
  • Strategy: Subdivide into two lots, renovate the existing house and build a second house at the back using a battle-axe access. Sell the renovated property and Keep new property after refinancing to go on and do another similar or better deal. Started with less money but has now a new property and more cash at hand.

Let’s talk numbers:

  • Asking price: $415
  • Negotiated Price: $399K
  • Client saved: $16k
  • Renovation, subdivision and building costs: $400K
  • Sale of the renovated house – Intrinsic value: $400K
  • Value of new house: $700K.