My best property deal so far

Negotiated purchase price to $525,000 from the original asking price of $588,000 for a two bedroom apartment on Castlereagh St, Sydney that was 93 sqm.

Non-equity related purchasing costs (stamp duty, government charges, conveyancer, bank fees) = $21,900.23

TOTAL COST TO OWN = $546,900.23

Bank will lend 70% X $525,000 = $367,500

New equity drawn from other properties = $111,000

Redraw from other loans = $40,000

TOTAL BANK MONIES = $518,500

Our "new" cash required: $550,577.98 - $518,500 = $28,400.23

(only 5.19% of the total cost required as cash)

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Net rental income: $22,805.80 for a 4.34% net income yield on purchase price.

(Gross rent is $650 per week. For net income then less strata, water, council, managing agent and insurance)

Loan interest rate at 4.66% = $22,298.10

Positive cashflow per annum: $22,805.80 - $22,298.10 = $507.70

Return on cash used: $507.70 / $28,400.23 = 1.79%