All Forum Posts by: Alison Lee

Interesting, I'm in Jeffersonville right now for a family Christmas party later this evening. I grew up in Jeffersonville/Utica area and have one SF property that is in Utica. 

Utica is an interesting area. When the East End bridge opened up several years ago, land prices and home prices skyrocketed. I took advantage of that and sold my brick ranch style home that I purchased for 100k in 2003, and sold it for 245k this summer. 

Prices around here have certainly gone up since I moved a few years back. The New Albany area would be a very good rental area, as is Old Clarksville. 

Congrats!!! Here's to hoping you can outline the steps and procedures you took along the way. I'll soon have over 200k cash in my back pocket and I would love to read your blueprint!! 

Again, a big hearty congratulations to you!

I posted a week or so ago about my situation. We are getting ready to sell a house we own free and clear for roughly 200k-220k. We had been renting it for just $1200/mo which wasn't nearly enough money. 

Anyhow, I am looking at investing the bulk of that money in either real estate rental property or I'm thinking about buying several acres and building boat storage facilities. I live next to Kentucky Lake and Lake Barkley which are massive lakes in Western Kentucky. 

My main goal is to do this for cash flow purposes, that's most important for my family. I don't understand the thought of putting as little down as possible and leveraging as much as possible? Talk about small cash flows?? Wouldn't I be better off buying three SFH at 75k apiece and paying cash for them in order to build cash flow?

Would i be better off utilizing another approach, such as being a private lender?? I need sound advice. I've got BIG decisions to make and soon!! Help.

I agree, and i think the asking price is high. They may be able to go for around $550/mo. If I could get it for 440k, would that be suitable??

Property is in the Southeast. It's a 10 unit/5 building MF property and they are asking around 475k. The units are 2bed/1ba and have been going for $500/mo. 

If I put 20% down I can get a solid CoC return. I can conservatively net 25k after expenses.....

It might be Section 8, don't know yet. Do these numbers look ok?? They are around 850sq/ft units built around 12 years ago. 

I don't have to do a 1031 because I qualify for the 2 in 5 rule. We have lived in the house for at least 2 out of the last 5 years, meaning as a married couple we get a 500k tax break. 

My problem with bridge loans, HML, and buying into large commercial properties is my limited experience. Although I would probably entertain bridge loans under the right scenarios.

When i said it's paid for, I mean I own it outright...no mortgage, the bank doesn't own it.lol 

Private lending meaning hard money loans, bridge loans and such?? How would i find these people to loan money to?? 

Private lending seems risky, much more than me buying a few rantal properties.

Wow, thank you folks!! Those are excellent questions and I should've tried to outline a better question firdt time. 

The reason I'm selling is because I was only getting $1200/mo and it's a paid for home worth 200k+. I didn't think I was making enough rent on it AND it's in the Louisville area, Jeffersonville, IN technically and I now live 180 miles away in Western Kentucky. I could get $1,400 out of it but even that's not enough on a 200k+ home is it??

I think I can actually bring that money down here and actually buy three SF properties for around 50k each and have much more than $1,400/mo coming in and for less $$$. I should be making more money down here with less financial commitment is what im saying. I do own another rental house right next door to that house im talking of selling and it's only worth 100k but I get close to $900/mo out of it. I will keep it because it's got a great renter who has lived there for 5 years and pays a day early. 

My time horizon is 20+ years, I'm only 44. I need cash flow because I'm a self employed contractor who dabbles in rental property. I currently have only two SFH. Of course it would be fantastic if I could buy rental property that appreciates greatly but that would not be my main primary purpose. We need a nice cash flow and 200k should be able to get me there. I truly don't like debt but could take some on given the proper scenario.

I have been renting a house out that is 180 miles from where I live. We used to live in the house but moved out 2 years ago. We've rented it out for the past two years but have decided to sell it and buy properties closer to where we now live.

I'm expecting to clear around 200-220k on the sale. The area of rural Western Kentucky in which i live has opportunities where rental style houses sell for 50k if you know where to look. We were considering trying to buy 3-4 of these types of properties using cash money from the above sale. I can probably strong arm my way into these situations and buy these places for 40k with a cash offer. 

My other thought was to build a nice duplex or triplex. Is it more expensive to build new than buy existing? Is my idea sound? Should i borrow money instead of paying cash?? How would you handle 220k?