All Forum Posts by: Greg Smith

Background: I have been investing in Louisville Kentucky (south and west) for a few years. I have a SFH in La Grange I used to live in that I now rent and it does great. It is much harder to cash flow but appreciation and quality of life considerations here in Oldham County make it where I want to invest. I've been trying to find more houses here through letter writing and networking and have had some success. I am closing this week on two SFHs that I like. My problem / opportunity is: I have a third deal that I can no longer afford to pull off with existing financing and I fear 3 houses at the same time is more than I swing sanely, even if I figured out the money side of things.

The House: I have a verbal contract on a house in a gentrifying neighborhood in LaGrange I have been targeting, right next to my existing rental house. Much of the value would come from a double lot that could be split. By my estimate, the ARV for the house and the lot, after about $20K of work would be $145K and $35K. I could wholesale it for $115K making a few thousand but not having the headache or risk of the flip.

I know people do this... my questions to anyone localish:

What do I need to do to do this legally? I am not a realtor.

Where do I find buyers?  I figure I'd need to find someone local but I don't really have any network.

The seller is eager for a quick sale and I don't want to put her off for very long but I told her I'd need to find another buyer. She thinks the MLS would take too long and require repairs. I am really only interested in buy and hold but thought I could learn something and make some money wholesaling this if it's feasible.

Thanks in advance for your help.

Gotcha.  I understand where you're coming from.  I figure if there's something broken I'll fix it.  That said, I try and avoid ceiling fans, garbage disposals and appliances more generally to minimize those sort of calls.

It seems like a sprayer is a reasonable thing to expect to be repaired.  One trick is to have the tenant reschedule the inspection right away... they are usually in a hurry to get in as well.  In my experience, section 8 didn't withhold money or hassle me... they just wanted broken things fixed.  I had an issue last year with a vent hood being installed incorrectly on a water heater.  It took me longer then my month to get the part and a plumber in.  That was a hassle because I had to be present for some reason... outside of that, it has felt more like an extra set of eyes inspecting my property than big brother mandating needless repairs.

I have a few section 8 houses and have seen both.  When I walk into a house and think “this is a nice place” I don’t have trouble but if I walk in and think, hmm... it’s been a while since I’ve XXXX, I get a few pages of repairs.  Most recently, I was dinged for a closet that didn’t latch when closed, peeling / cracked ceiling, loose floor boards and junk piled on the back porch.  All those things are things I’d expect them to be looking for.  What sort of things are you seeing?

 What sort of problems are you seeing with section 8?

 I have decided against the deal.  The numbers seemed great but it was too much for me right now.

I *was* looking for a company.  I don't feel like I have the expertise in hiring / managing a manager.  I figured there was a decent potential for things to go sideways.

I am in the due diligence phase of an offer on a 40 unit complex in Louisville. It will need new management and I do not believe my past manager is up to the job. It is an older, B class Community in a working-class neighborhood near the airport. Does anyone have any advice / recommendations  for a property manager (good or bad)? Thank you

 I guess I don’t really understand the conversation. So it is a theoretical discussion of which would be better between two extremes?

 By paying down the debt rather than pull all the cash flow out each month.  That's my plan at leat.  I'll use the dave ramsey snowball method and payoff the smaller debts first and build momentum.

I also bought a 4/1.5 in portland last year.  It has been a headache... much rougher area than other parts of town I've been in. I found needles multiple times by my trash cans in the alley, I was solicited by a prostitute and had a crazy guy break in tell me it was his house and to get lost.  This was all in my 2 month renovation.  I've not had any of that sort of stuff further south.  It is rented now section 8 and cash flows excellently, but I'm not doing it again.  If I lose this tenant I think I will just sell.