Newbie trying out property investment

Let me introduce myself, I am 24 years old working in Singapore, earning roughly 7k SGD a month excluding bonus and stock options. Right now I am looking into sub-sales as.

Let me share with you guys my opinion on why I am looking into sub-sales, not a new project.

There is more negotiation room and I can collect rent to cover my installment. I can calculate my rental yield fairly easily.

When you go to the sales gallery, even though the surrounding area only yields RM2K rental with a fully furnished unit, they will advertise RM5k rental if you cut into smaller rooms and so on, or do Airbnb which I am quite opposed to as there is too much competition right now and it is hard to make your unit really stand out among all the Airbnb units.

I have been to a lot of sale galleries in KL recently and I don't think right now there are any good projects that can generate breakeven cash flow, let alone positive cash flow. I feel like all the properties are quite overpriced at this point as I need to fork out around RM 1k for the unit and this is excluding renovation from the makeover guys and the agent commission fee for helping us find a tenant.

Moving on to the project I am looking at

It's Country Garden Danga Bay located in Johor, I am right now taking advantage of the situation of China/Singapore investors trying to cut their losses because the initial launching price is RM 1. xx million, and right now the market value is around roughly RM470k and above hence I am sort of trying to lowball the seller to sell me their unit and let them live in peace.  

The unit I am looking at is an 881 square ft 2 bed and 2 bathroom layout. There is a tenant inside the unit and the rental is around RM 1700, the selling price is RM480k which I manage to haggle down to RM 380K which is almost 100k off. I think I will jack up the price to RM 1800/RM 1900 after I purchase the unit. The rental yield is roughly around 5.6% which I considered decent.  If you compare this to any other units in KL/RnF pricess Cove, I find this unit quite impressive as most of the properties in KL only yield roughly 3% rental yield, at most 4%

Furthermore, to give you more context the developer units are going for sale at a price of RM 450 per square foot for those 1200 square ft layouts and RM 550 to RM 650 for those units ranging from 400 square ft to 900 square ft. Even for subscales, other than the unit I am eyeing which is RM 430 per square ft,  the next cheapest available sits at around RM 540 per square ft.

Concerns/Questions:

I am contemplating whether I should take a full loan and cash out the difference as I know the bank value will be higher than the sales price. If this is the case, I might need to fork out the maintenance fees every month. But If I do not cash out and went for a lower loan amount, the rental actually covers all installment and maintenance costs and I do not need to worry about anything.

The reputation of the developer and the financial status might be a problem if I wanna exit this property as the future buyer will also research online before buying. But since this is already built and finished hence I am not that concerned if the developer actually goes bankrupt. Have you had any trouble exiting a property where the developer's name kinda ruin the ongoing deal?

Due to the higher initial launching price and now the price drop so much, there are still unsold units from the developer which I confirm with several agents and there is a lot of negative comments about this project, but when I go to their township and see, quite popular leh, got beach, got visitors, two sides of the road all fully park for the beach and all, maybe is developer buy cars and park there to look more popular hahaha but there is also a mall with Aeon, Mr. DIY, HealthLane Pharmacy, Original Classic, Cinema, Although the mall is not that big but it has everything we need. How come the online comments are so teruk and I am scared this might affect future buyers when I am exiting this property?

They said since this whole township is built on reclaimed land, the building might sink and terus collapse hahaha I am not sure whether this is true or not so might need your expertise on this.

I want to play it conservatively, assuming my property does not really appreciate in price, and since I am entering below market price and I can sell it back at below market price too in the future and assuming there is no capital appreciation there and I continue to let my tenant build equity for me and I refinance it and cash out and keep repeating this, am I playing the property game right or should I aim for a property that has much more space for capital appreciation like in KLor Penang, cuz high rise in JB, I don't really see too much of a capital appreciation happening as they have ample of land. 

Last but not least, does buying this property make sense ? 

I am not so experience in refinancing also I saw some1 said can use refinancing to cash out loan.

if free few hundred a month, what if u got 10-30 units of them?

it is cash flow every month, and at the end of the day after few years, u even dispose at your buying price, u still earn equity.

Agreed. If I were Singaporean and I wanted to buy something just across the border, it would be landed at a fraction of the price.

If you’re going after a more cosmopolitan populace then it’ll be KL.

Just to reiterate, Johor is not Shenzhen. It’s like Philadelphia to Manhattan.

What nonsense conjecture. Hard borders are up for a reason. What if PAS takes over government, that’s more likely than SG sponsoring their citizens to live in our country and not contribute to their GDP. It’s mainly Malaysians who work in SG who will buy back in Johor.

You do make some valid points but until Malaysia gives assurance of what happens in case of an emergency or when borders get closed then this is not a full proof plan. Recent events have shown how volatile this can be. The idea is great but the reality might not match up. I saw too many MM2H people get completely stuffed over with no home for a long long time.

I agree with the post which said buy landed instead. But i will look for a shoplot with your kind of salary.