May I ask, if this "daring part" referring purely to financial risk, or more referring to other implication from say none financial-related risk??

How often one can do this? assuming one know how to..

thanks.

I echo your statement of 'dream "problem" ', ie. example given by Rosemount, especially first para, I likey.

It takes skills and experience to troubleshoot the 'dream "problem" ' given, and make it a managable risk.
But personally, I believe it takes a lot more than that, especially on the luck side, to be able to find this kinda 'dream "problem" '.

Having said that, COCR is not the only measure to decide on an investment, nor is yield alone.

IMHO, 1) LOCATION, LOCATION, LOCATION, 2) look at the financials (yield, COCR), 3) Conduct due diligence,

1) location not hot, even current sale with tenancy giving 15% yield, no one guarantees the fella going to stay forever, no room for future cap gains etc
2) location ngam, but numbers make no sense to put money in, bye bye.
3) location ngam, price ngam, but the unit got rape case, flood case, murder case, loan shark case, etc... bye bye.

Phoeni_142,

Thank you for sharing.

This is how I interpret what you mean, with the right PEOPLE (tenant(s)), any location can be a good location.

That would be, good tenant profile, willing to pay good rental, able to pay rent on time, take good care of your property, give you very little/ no hassle, and willing to stay on and on in your property, securing it as a long term tenancy with little friction cost (agent fees, refurbish cost, and vacancy period). Even with a change in tenants, hope the people attracted to that area will behave the same way.

Have I interpreted your statement on the right direction? Any more good pointers for newbie here

dvinez,

You may want to aim at properties with higher than RM900 monthly rental, if your intention is to enjoy rental yield for longer term rather than flipping the property for capital gain.

A good rental yield, your collected rental should at least be enough to pay for installment to bank, maintenance fees, assessment fees, insurance, etc... and at least still give you RM100/RM200 pocket money, then it's worth considering.

Online calculator may be using your current BLR - x.x rate to calculate the expected installment, no guarantee that the BLR will not move upwards, and you will be dipping into more negative monthly cashflows.

What I meant was stick to the RM200k price tag for your condo/house, but try till you get a unit that can give you at least the rental sufficiently high to cover all costs and still give you positive cashflows, ie. one rent for RM900, another rent for RM1.5k, both cost price RM200k. If you get something that is just ngam ngam or giving negative cashflows, you will think you can afford since your monthly salary can tahan, but what if you lose your job or the BLR move against you, you will see yourself bleeding too fast to hang on the the property. A note, most likely condo will give you higher chance of positive cashflows.

If you cannot afford the downpayment, suggest you keep saving up and keep your eyes open and slowly search for the golden opportunity. Plenty of house/condo for sale all the time, not all worth buying, and those worth buying will be gone within days.

Read more, do more research, educate yourself before jumping into big debts. make sure you know the rules of the game before even beginning with it.

Those were examples given, but no one says it's not possible.
Why limit yourself to just setapak area, rite?

RM180k-RM210k with f/f RM1.3k-RM1.6k rental sounds rite. I think there are still units like that in the market under current market condition. goodluck hunting.