Vending machine business owner and single mum, Trish, has worked hard all of her life. After downsizing and selling the family home, she wanted an investment in property that could allow her to spend less time working hard and more time enjoying life.
The High Income Real Estate System resonated with Trish. Taking a single-family home and converting it into micro-apartments for the affordable housing market was a good fit. She was drawn to the idea of investing with a social conscious.
“Being part of the solution for our affordable housing crisis makes me feel really good,” says Trish.
After using the due diligence methods I’ve taught her in the course, Trish settled on an area in suburban Victoria, and after inspecting several homes, she found the one!
The home was purchased at auction for $600K and cost $50K and six weeks to convert from a single-family home into a ‘Rooming House’ conversion.
What would have rented for $500 p/week, now rents for $1500 p/week, giving Trish a valuable $52K p/year cash flow uplift!
For Trish having the support of my Small Is The New Big team and our student community made the process more seamless.
“I certainly couldn’t have done this without the community, and just knowing that they’re there,” she says.
What’s in store for Trish now?
She says, “I’d like to do things that I haven’t done for 15 years. I worked extremely hard, and I’d like to do a bit less of working extremely hard, and a bit more traveling, and a bit more reading … not doing things because I have to earn a living.”
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Did Trish sell the $ 600 k property or
did she convert the house into 3 properties to get that rental income.?
Thanks
Hi Ethel, Great question!
Trish converted the property into micro-apartments to create regular positive cash flow income from the house.
If she converted the house to a rooming house, then the rent would be all inclusive of electricity and water. So wouldn’t there be extra expense? Net income is a lot less than stated ?
Hi there Kakada, The onwers here have disclosed their gross yield. There are outgoings and loan payments to come out of that return before the net return figure is arrived at. However, they are still in a net cash flow positive position with the high returns they’re receiving as a result of the conversion. Had this property been rented as a single-family home, they would be negatively-geared and having to pay money just to hold the property each month.