All Forum Posts by: Erik Hitzelberger

@Matthew Tuley I am not a loan officer, so please verify this info.. I believe you need to be there for 12 months and you are not disqualified from future FHA loans

Welcome @Josh Newton. As Rob mentioned, check out KREIA. Feel free to ask as many questions as you want here as well. There's a strong network of knowledgeable investors in Louisville who are very willing to share.

The Louisville real estate market is strong and there are no reasonable economic indications that this will change in the next few years. Like many other places, the low inventory is driving prices. If you can get solid returns, take advantage of the low interest rates and move forward with confidence

@Jeffrey R. White Check the tax rate for the area. I believe it's 1.3 not 1.07. Either way, your estimate is low based on a $420 sales price. Also, who takes care of the lawn maintenance and snow removal? Is that part of your 10% repair reserve?

Hi @Staci Dickman and welcome to BP. Inventory is tight in Louisville right now, but its a great time to be flipping if you can find the deals. I recommend joining KREIA as an additional way to network and find deals. Feel free to reach out if you have any specific questions.

Regards,

Erik

@Megan Gleeson  Try Black Diamond... they've relocated a host of different animals for me over the years

@John Sherwood The areas you mentioned are certainly high-demand areas, but they come with challenges. Competition with owner-occupants and the age of the homes (70-120+) will squeeze your margins and expose you to a fair amount of risk. It can certainly be done, but I'd recommend having a solid contractor on your team and holding a fair amount in reserves. 

This is great news for the city and is certainly significant. It is well established that direct manufacturing jobs create indirect jobs at a rate of 7-8:1. So the 400 jobs being created here will yield an additional ~3000 jobs in the near future. Even if we assumed the entire working age population of the MSA has/wants a job, that equates to a 0.35% increase in employment. 

What's more this isn't a one off event. Ford's announced $1B investment in Louisville is making headlines now, but other companies such as this one are expanding and new companies are moving to the area. All-in-all, Louisville is growing on both a population and economic basis. These are important macro-factors to look at when deciding where to invest.  

@Michael Morris To answer the question, yes you can do business in that area as a wholesaler. You need to know what your buyer expects though. The comps tell you that there aren't many people flipping homes in that area. Most sales are to B&H investors. These buyers will make the house livable, but not to the standards the Housewyse app is built for.

I suggest you learn the area and learn who is buying there then figure out exactly what it is they do and what their costs are. No one wins if you get a 'deal' you cannot sell. 

Good luck!

From a LT rental perspective, this is nearly break-even BEFORE accounting for vacancy and maintenance.

As @Brian Stephens mentioned, you will want to be very sure your property would qualify as a ST rental before purchase. Check out the link he sent and pay particular attention to the distance requirements. Based on the purchase price and expected returns, I'm guessing you are in an area that has a high concentration of STR already. Talk to @Jay Leisten and other STR management companies about their fees. They are necessarily higher than standard PM fees.
Also, have them very the occupancy rate and income estimates. Don't forget to include the cost of utilities in your analysis.

IF the STR revenue number is accurate and IF the property qualifies as a STR, it looks like it will cashflow. That being said, I agree with Brian. I'd have a hard time making an investment that loses money in any scenario other than STR.

Good luck!