The properties that are generating positive cash flow are those offering stronger yields, with attractive tax benefits.
These properties are generally known as Dual Occ properties where there are two rental streams coming from two houses on one property.
The Dual Occ fundamentally boosts the yield and cash flow available from the property, thus converting what would historically be a negative cash flow property into a positive cash flow property.
From the street front these properties present as high-quality single residential homes. What appears to be one dwelling on the outside is in fact two dwellings on the inside producing two incomes.
The fundamentals of dual income properties include:
Positive cash flow from the very first monthly rental payment for investors
Low outgoings – no strata fees, low council rates and water rates, which maximizes yields and cash flow
Average investors who are able to borrow 100% will have more net income than previously after all costs are paid
Achievable rents are about 50% higher than for a house of similar value
Located in high demand areas because they are just as affordable as the typical 4-bedroom investment house
If one of the dwellings is vacant for a period, the other will still be producing rent, minimizing risk to cash flow
