[SOLD] Better than the Bank - Retire & Live off your Cashflow
129 Malfroy Road, Victoria, Rotorua - $1,050,000
Cashflow and equity in a good suburb! Come and get it.
These are 10 x 1 bedroom units at 129 Malfroy Road, Victoria, Rotorua. Each unit is 39sqm and located in an excellent location next to the Westend shopping centre with only a 10 minute walk into the CBD.
Each unit has its own private outdoor courtyard, along with a BBQ area at the rear of the complex.
These units are fully tenanted, and have a fantastic rental history. There is huge tenant demand in Rotorua for this type of accommodation.
Vendor is currently going through and renovating the units. Rents are currently being increased by current property manager to $175 p/w. However should easily attain $210p/w in the current market, once renovated. The units will be externally painted as well.
If a more upmarket renovation was undertaken by adding modern kitchens, this could be increased even further.
Two units have full stoves and the rest have bench top units, good carpets and drapes. They all have a raised ceilings which gives the units a spacious feel.
Property in Depth Valuations is using a gross yield 7.5% cap rate at the moment for these type of multi-unit blocks, indicating a valuation of $1,300,000 so there is good equity to be found. Cap rate means you divide the gross annual rent by the yield to arrive at a value figure.
Using a cash flow analysis, using the rental appraisal of $210 p/w x 10 ($2,100) with all the expenses included, (Property Manager, Rates, Insurance & Maintenance) and with a price guideline of $1,130,000 you will see it is massively positive cash flow, over $15,000 per year with a 100% mortgage ($31,000 @ 60%). With all the units in a tidy renovated condition.
Another option is to furnish and add modern kitchens. This would then open the property up into the short term AirBnB market or a higher yielding tenancy. Some furnished units fetch up to $300 p/w each in Rotorua. That's a whopping $3,000 p/w.
Westend Shopping Centre, New World supermarket, handy to CBD and all levels of schooling.
Debbie Van Den Broek
Licensed Salesperson - REAA 2008
021 131 6119