In this episode of the Australian Property Investment Podcast, Aaron Christie-David is joined by seasoned investor and buyer’s agent Rishi Bajaj to tackle one of the most common challenges faced by property investors: how to effectively manage cash flow while scaling a portfolio.
Whether you’re just getting started or already have a few properties under your belt, this conversation unpacks the practical tools, mindset shifts, and strategic insights that can help you grow confidently and sustainably.
Why Most Investors Get Stuck at 1 or 2 Properties
It’s not equity that stops most investors, it’s poor cash flow planning. As Aaron and Rishi agree, many buyers hit a wall not because they lack borrowing power, but because they underestimate the holding costs of their portfolio.
Instead of focusing solely on borrowing capacity, Rishi encourages clients to first assess their holding capacity, i.e., how much they can comfortably afford to contribute out-of-pocket when interest rates rise, tenants leave, or maintenance issues pop up.
How to Forecast Your Real Cash Flow (Not Just Hope for the Best)
Rishi shares a powerful Excel-based tool that he uses with his clients to calculate actual cash flow based on:
- Purchase price
- Rent yield
- Interest rate (using a baseline 6%)
- Outgoings (rates, insurance, management fees, maintenance)
- Rental and capital growth assumptions
- Tax brackets and potential depreciation
This reverse-engineered model helps determine whether a property is affordable before even looking at locations. It’s a proactive way to test different scenarios and avoid nasty surprises.
Managing Risk: The Buffer You Shouldn’t Skip
One of the most overlooked steps? Having a buffer.
Rishi recommends keeping a buffer of at least 3 to 6 months’ rent in a separate account or offset. This ensures you can handle vacancies, tribunal delays, or emergency repairs without feeling the squeeze. Think of it as your “sleep at night factor.”
His personal rule? Set aside 1% of the property’s value per year for unexpected maintenance. It might feel excessive until the garage door motor fails, then you’ll be glad you did.
Why Cash Flow Looks Red Now, But Green Later
Most investors hit a “red zone” during the early stages of their portfolio – where outgoings exceed rental income. But as rents grow and interest rates eventually shift, Rishi says this red turns to green with time and discipline.
The trick is to build a portfolio that includes both growth and yield. For example, balance capital city properties with dual-income options like granny flats or duplexes to smooth out your overall returns.
Scaling Without Breaking: The Strategy Behind Portfolio Growth
Want to grow beyond two or three properties? You’ll need more than just motivation, you need structure.
Here’s how Rishi breaks it down:
- Have a long-term strategy: Know your end goal and build around it.
- Use the right structure: Whether it’s trusts, companies, or SMSFs, structuring correctly with advice from a savvy accountant can preserve borrowing capacity.
- Diversify your markets: Don’t buy everything in one suburb or state. Spread risk across different regions and asset types.
- Move through the 3 phases of portfolio growth:
- Acquisition: Buy as many quality properties as you can, as quickly as you can, without compromising cash flow.
- Stabilisation: Hold and allow rents, equity, and time to work their magic.
- Consolidation: Sell strategically, pay down debt, and free up capital for future moves.
Rishi’s Journey: From Open Homes to a 9 Property Portfolio
Rishi’s investing journey began in New Zealand, where he bought four properties before migrating to Australia. But it wasn’t until COVID-19 and job loss forced a reality check that he ramped up his efforts.
Today, Rishi holds a diverse portfolio of nine properties, spanning residential, commercial, and SMSF-held assets. Some have seen over 40–50% growth, but the real value has been in the lessons learned… from poor due diligence to missed selling opportunities.
The #1 Mistake He Sees Investors Make
“People focus on borrowing capacity, not holding capacity,” Rishi says. And too often, they fail to treat property investing like the business it is.
He also warns against emotional decision-making, especially around home ownership. For some, rentvesting (renting where you want to live while investing elsewhere) can be the smarter path.
Want to Be a Top 1% Investor? Here’s the Playbook
Only 1–5% of Australians own more than six investment properties. Want to be one of them?
- Build a strategic team around you (broker, accountant, buyer’s agent)
- Follow a plan tailored to your goals, not the latest headlines
- Stay committed through the setbacks (like interest rate hikes or vacancies)
Always plan for the next step, not just the next property
Next Steps?
Cash flow is the number one reason most investors stop at one or two properties but it doesn’t have to be the reason you do too.
With the right tools, buffers, and strategy, you can build a sustainable portfolio that creates long-term wealth and time freedom.
Book a free 15 minute strategy session with our team to learn how to scale your portfolio without sacrificing lifestyle or sleep.
👉 Click here to book your strategy call
Or catch the full episode of the Australian Property Investment Podcast with Rishi Bajaj for deeper insights and practical tips.
Start with strategy. Scale with confidence.
