Would a small furnished flat in inner Perth be a good investment?

I would tend to steer away from tiny flats in part because there are so many that renters have a lot of choice. An old flat might not get much of a look in when there are many new ones on the market. Also, some of them are leased to big corporates long term and you would need to make sure the contracts were solid. I don't know about capital growth - again something to check.