A quick sale with positive cashflow

by Wayne Dickson on Apr 19, 2021
Article appears under: Case Studies, About Property Investment

The brief

My client was based in Auckland and did not know much about Tokoroa. The goal was to buy a house that would not give her any sleepless nights. She was not able to spend time doing a renovation, but was happy to have others complete the reno if the numbers worked. She was looking for a property that would produce an equity gain and at least be cashflow neutral.

The details

• Three bedroom home in a cul-de-sac
• Total purchase price = $317,765
• $4,000 PA Positive Cashflow
• Renovation spend = $25,000
• Rent = $400 per week

The deal

The house was quite run down and had been rented to bad tenants. The tenants made it very difficult for buyers to get through the house, which resulted in 2 previous offers falling over. Knowing it was a difficult one, we waited until the landlord was sick of it, put an offer in and had it under contract without going through the house. The tenants moved on, and I was able to get in the house and put together a planned renovation with quotes. My property manager wife assisted with ideas for the scope of work and the likely rent. 

I spoke to the buyer, told her how bad it was - and how good it could be! A building check found nothing too bad but a lot of repair, nothing structural. We worked out what the vendor wanted – a quick sale. It was unconditional in less than two weeks and settled about 10 days later. 

It settled, the renovation crew got it and worked their wonder. Neighbours came over, so appreciative to see the house looking nice again. A tenant had been secured before the renovation was complete at $400 per week. The renovation spend was about 25k. It was $4,000 PA positive cashflow, based on interest only.

The iFind Difference

The vendor had been disappointed after an earlier sale fell through. I offered them a fast sale as-is, and the agent I went through was able to let them know how well the Buyers Agency service had worked in the past. Once under contract I provided a builder, meth tester, property manager, renovation team – basically someone for every task. Great results for everyone involved. 

Before:

After:

I recently purchased an IP in Tokoroa through iFindProperty and being Auckland based, found the process incredibly seamless. I can highly recommend Wayne Dickson - not only is he knowledgable, professional and well-connected, but he helped to make both the purchase and subsequent renovation process simple and easy. I will definitely be using iFindProperty again and am happy to provide a solid five star rating.