Hi,my husband and I are looking at buying a property in the northern waterside suburbs of Brisbane and building a secondary dwelling on it. It will achieve approx 6% yield, but this is before all the other expenses come out (Ie property management fees, insurances, rates, water etc).
I have estimated we will be out of pocket around 100-150pw once both properties are tenanted. This isn't a deal breaker, but the reason I wanted to put a secondary dwelling on it, is so that we would be in a cash flow positive position to move onto our next investment.
I'm wondering...when people talk about cash flow positive investments, is it possible for them to be TRULY cash flow positive?
I really would like to understand this, so I can ensure we are doing the right thing for our strategy. Ideally we would like our investments to be at least neutrally geared.