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All Forum Posts by: Adam E.

Adam E. has started 1 posts and replied 5 times.

Post: $175,000 settlement.... now what?

Adam E.Posted
  • Louisville, KY
  • Posts 5
  • Votes 0

Thank you for that. However I'm not worried, I'm not giving a dime to anyone plus not telling anyone either. The people on here are the only ones I've said anything to, hell my family doesn't even know, lol. 

Post: $175,000 settlement.... now what?

Adam E.Posted
  • Louisville, KY
  • Posts 5
  • Votes 0

Chuck as a general rule of thumb I personally try to avoid going past anything with double digits streets. So I likely wouldn't have considered the west end but now that I think about it there is a little pocket west of 264 and south of Broadway which could present some opportunities and not directly be in the higher crime areas which are out there. 

My thoughts on this were to target a few places Okolona/Newburg areas in general (Preston hwy, Fern Valley, Outer Loop, Poplar Level, Indiana Trail. Southern Parkway/Taylor Blvd going slightly north of 264 and as far south as 265 and then anything west of Dixie. I'd also like east of 65 and south of Broadway, but my gut feeling is that while homes like this may exist they aren't as plentiful.

My thoughts were these would present older established homes, blue collar, not high crime. Obviously I wouldn't jump at just anything both from a improvements required/trashy area. There was a period of time when my wife and I were young, had a child, not finished our education, and worked awful jobs just to be broke, so I have a faith in our ability to identify the right type of individuals, (those who are trying)   

I also though about the possibility of foregoing the multiple houses and instead buying 1 house in old louisville near U of L with 3-4 units and targeting students. I'd be interested in hearing your thoughts on the locations for the section 8 homes and the idea around U of L.  

Thank you for pointing out the locations to look. I likely would have just stayed to MLS and zillow.

Seriously to everyone, thank you so much. 

Post: $175,000 settlement.... now what?

Adam E.Posted
  • Louisville, KY
  • Posts 5
  • Votes 0

Andrew, Sorry I meant to say 900 gross. I ball parked 250ish for the mortgage with 650ish net. 

I'm not worried about being leveraged, to be frank I'd rather have 70% of the final appraised value (after repairs) than 70% of the initial purchase price. I just don't know if it's worth it to do the initial mortgage just to turn around and refinance it again  6 months later once the value increases just to allow me to have the liquidity back. I know it isn't ideal to have to pay interest on 21K (70% of 15k appraised value per home) just to have cash. But the alternative is simply having it sunk in the property. Does that make sense? 

Also, I just want to say how amazed I am that so many people would take the time to respond, and so quickly, to my day 1 questions. Thank you 

Post: $175,000 settlement.... now what?

Adam E.Posted
  • Louisville, KY
  • Posts 5
  • Votes 0

Nope, everything is taken care of and its $175,000 no taxes, no payments to any attorney (did it all myself). The only parts of it I will not use are buying a newer car and a couple lump sum payments to kids 529 plans. 

Kelly thank you for the link I'll give it a read.

Post: $175,000 settlement.... now what?

Adam E.Posted
  • Louisville, KY
  • Posts 5
  • Votes 0

I'm new here and this is my first post, so I'm sure I'm asking something that has been covered over and over, but here goes. Long story short I just reached a settlement agreement with the VA and I'd like to invest some portion of this into owning rental property. I have a general idea of what I'd like to do, but I'm not willing to press on until I understand all the various aspects and have some insight from others with experience.

My long term goal is to buy and hold rental property to create additional sources of income. I'd like to steadily increase the number of properties I own, but I do not have a defined pace at which I'd like to proceed.

I live in Louisville, KY and my idea is to purchase 2-3 homes, each around the 35k-40k range and in need of no more than 15k in repairs/improvements per property. I would like to make the homes approved for section 8, largely because reliability the gov portion of the rent being paid on time and the high demand of programs such as these. I estimate that I could net $900 per property per month. 

My thoughts were to finance 70% on each home for 15 year fixed. I'm not sure if it's better to buy the houses with cash and finance them after the repairs or the other way around or even where/how to go about finding these specific types of properties in general. Any insight, ideas, and/or guidance would be appreciated.