New Investor to the Area

[Joe Connor]

Hey all - first off, thanks to everyone for all of the valuable information and tips! I'm interested in learning more about the Louisville market, primarily for fix and flips. I'd love to hear any perspectives on how the strategy works in the area and would appreciate any guidance on good neighborhoods / towns / areas to take a look at or ones to be cautious of. Looking forward to connecting with some folks!

[Shawn Parsh]

Joe,

Regardless of the location the information you will need to focus on is the same. If you do not have a team I would start building one. A good real estate agent that works in your market should be able to help identify desirable neighborhoods, as well as realistic prices. If you haven't already joined the local real estate investing club I would recommend that as well. I would also continually watch the market in your target area to get a better feel for what is selling, what features are important, and how long houses are sitting on the market. 

Once you find the area/neighborhoods that are in demand I would focus my search for distressed properties there. Then its a matter of determining what repairs need to be made, what they will cost, who will do them, and how long they will take. Then you need a no BS estimate of what the properties after repair value will be.

For me after I get those numbers then I decide how much I can pay for the property to make the profit I want. Make sure you build in enough profit that WHEN things pop up that you were not planning for you still have enough wiggle room to still make a decent amount of money. Good luck.