d36 property, formal proposal to purchase, 26 August 2026
Proposal to Purchase
7 Admirals Court, Frankston, prepared for Adam Hubbard
With site assessment and input from Stuart and Sio, Super Cashflow Developments
Summary. Following our discussions and a physical inspection, I am recommending we make a formal offer on 7 Admirals Court. The property supports a nine bedroom rooming house conversion, the planning path is clear, and the numbers fit within the $1.10M all in ceiling at a competitive yield.
Budget ceiling
$1.10Mall in
Purchase priceStamp dutyConversionCosts
Every number below, from the offer position to the renovation allowance, works back from this ceiling.
Recommendation: proceed to offer. Ranked first of everything assessed. Significant floorplan upside, planning clear, and the strongest suburb fundamentals of anything in the search. Submit an offer and commence negotiations.
1Why this one
- Significant floorplan upside. Two kitchens, three bathrooms, four separate entries, and split gas meters front and back for future flexibility. Potential to reach the target of 9 rooms.
- The remaining work is straightforward. Installing walls, air conditioning units, compliance updates, and cosmetic finishes: carpets, paint, trims and lighting. This work will deliver a product that hits the right target market.
- Planning is clear. General Residential zoning where a rooming house is a Section 1 use, no overlays, and a 13.5m carport that answers the parking question most permits fail on.
- Frankston stacks up. The strongest 12 month growth, strong demographic and socioeconomic factors (public housing, wages, etc.), and supply and demand factors that support not only cash flow but long term capital growth.
2The numbers
| Rooms modelled | 9 |
| Room rate modelled | $250/week. Deliberately conservative |
| Indicative yield | ~10.1% at nine rooms; ~9.0% at eight. On total project cost |
| Conversion ballpark | $80,200 to $106,880. Ballpark estimate allowance for an 8 to 9 bedroom conversion, subject to final configuration. Site measure up and concept drawings will determine the most efficient nine bedroom layout and final scope |
| Offer position | Mid to high nines to be competitive. Realistically a mid nine start with a stop around $975k |
3Aerial and floor plan
4Site assessment by Super Cashflow
| Zoning | R1Z, superseded by General Residential. Rooming houses are a Section 1 use, so the zoning permits it |
| Overlays | None. Planning is clear |
| Layout | An expansive floorplan with room to reach nine. The lounge and dining offer the additional rooms, subject to layout, light, ventilation and access |
| Bathrooms | 2 ensuites plus 1 shared. The best starting point of the sites assessed. Worth improving the ratio at nine rooms; ensuites to every room is not the path on this budget |
5The nine bedroom outcome, and how it firms up
1The nine bedroom outcome
- Based on the assessment of the property, floor plan and available space, Super Cashflow are confident a nine bedroom rooming house outcome is achievable.
- What is deliberately not locked in yet is the exact configuration of those nine bedrooms. The agent’s floor plan is not to scale, so it would be premature to commit to a particular layout before the property is physically measured.
- The measure up and concept stage do not determine whether nine bedrooms are possible. They determine the best way to deliver the nine bedroom outcome: optimising room sizes, bathrooms and ensuites, common areas and the overall use of the existing building.
- Multiple concept options are prepared from the real measurements, and the preferred one is selected and refined before anything is lodged.
2The conversion budget
- The renovation allowance is an indicative budget at the acquisition stage, and it gives the range needed to make an informed acquisition decision. The level of costing certainty increases at every stage that follows.
- Once the property is measured and the preferred concept is selected, there is substantially more information about the scope of works. The working drawings then give the builder the detail required to prepare the construction quote.
- As a guide, air conditioning runs around $2,000 to $2,500 per room supplied and installed. The remainder covers walls and alterations, compliance works, electrical, painting, wet areas, furnishings, builder labour and contingency.
3The rental assessment
- The rental feasibility is deliberately conservative. The property is modelled at $250 per room per week against a measured market rate of approximately $283, so the numbers are not relying on aggressive rental assumptions to work.
- That leaves potential upside depending on the final room configuration, the level of finish, inclusions and market conditions when the property is ready for tenants.
4The Super Cashflow process: progressive confirmation points
- 1Initial feasibility. The property is assessed and confidence in the nine bedroom strategy is confirmed. This step is complete.
- 2Site measure up. The property is physically measured and the existing conditions accurately documented.
- 3Concept drawings. Multiple nine bedroom layout options are prepared from the actual measurements.
- 4Client selection and refinement. Adam reviews the options, selects his preferred concept, and any required amendments are made.
- 5Pre lodgement confirmation. The preferred concept is progressed and any planning and compliance considerations are worked through before final lodgement.
- 6Working drawings. Detailed drawings are prepared from the agreed concept.
- 7Builder quotation. The builder prices the works from the detailed drawings, giving a construction price based on the actual selected design.
- Each stage adds a further level of confirmation and detail. The process is not waiting on the measure up to decide whether this is a nine bedroom opportunity; it progressively measures, designs, optimises, confirms and prices exactly how to deliver it.
Offer sequencing, confirmed with Super Cashflow
The offer does not need to be made subject to the measure up. Super Cashflow are confident in the nine bedroom outcome now; the stages that follow settle how it is delivered, not whether. On that basis, if the anticipated renovation budget is comfortable, the focus is on negotiating the best possible acquisition price.
6Next steps
- 1Submit offer and commence negotiations on the property.
- 2If successful at a level that makes this feasible, Super Cashflow will finalise the nine room construction figure and the line by line cost breakdown.
Formal proposal to purchase, prepared by d36 property for Adam Hubbard