All Forum Posts by: Erik Hitzelberger

First, if the property is in Jefferson County, you have to send a 7-day letter. It does not have to come from an attorney, but you need to send it certified mail. If the tenant does not pay within the 7-day period, you can file a motion in eviction court. I strongly recommend having an attorney handle this part as well as the hearing if it goes that far. Watch and learn if you want, but it's not worth it. I've been managing homes for 10-12 years and have never been. I just notify my attorney that the tenant didn't pay after the 7 days and she does the rest.

Second, if you have an agreement that the tenant is leaving, that's great. It's much faster when they voluntarily leave. Make sure to get something in writing (even a text) stating they have moved out and turned over the keys. If not, you could still have to go through the eviction process. 

Third, use good judgement when going to the property. This can be an emotionally situation. Stay safe.

Regardless, good luck!

@Lauren Kendall - Reach out to the 3 lenders mentioned above. Their lending criteria revolves around the property and around your capabilities. Mike (MM Lending), Leigh (SP) and Chris (FL) have been around the business for a long-time. They will give you good advice on what you need to show them in order to get started. 

If you have any questions or would like an introduction, feel free to reach out. 

Agents are independent contractors. All commissions are negotiable and any discussion by agents related to expected commission would be inappropriate (illegal). Call around and see what services agents are willing to provide and at what rate. 

As far as other fees, you can expect to pay a few document and recording fees to the attorney ($300-600 depending on where you close) as well as the transfer tax (0.1% = $240) on the sale. 

I’ll say this as politely as possible. It’s irresponsible to the point of negligence to manage property (even your own) and not know whether your lease conforms to local laws. While most tenants don’t know the difference, you will eventually run into someone who does and they will take advantage of the situation.

Find a real estate attorney who handles evictions and collections in Indiana. He or she will be very knowledgeable on the clauses that trip up landlords. 

@Aaron Burkhart - 

1) We have the benefit off living in one of the most affordable cities in the country when it comes to housing. That means you can buy good rental properties in most areas of the city. I prefer properties in solid neighborhoods where the residents will be able to live for a long time.

As such (and given your down payment amount), I would look in the south end, Okolona, Fern Creek, and possibly J-town

2) absolutely 

3) SFr

4) send me a PM and I’ll give you the names of a couple great local lenders who understand investments... either can find you an appropriate product

5) this largely depends on your goals. You mention that you want to be a passive investor. If that’s true, find a good team and use their expertise. If you want to ‘get a better deal’ by being an active investor, start networking with wholesalers and studying the market. I STRONGLY encourage you to put assign a realistic value to your time and account for that in your deal analysis. Being active is a job and must be treated as such. 

Good luck! 

Okolona is a great area for rental properties if you are looking for a mix of cash-flow and appreciation. Most neighborhoods are pre-dominantly owner-occupied and demand from both owners and tenants is strong. Of course, investor demand is also high. Don't get too hung up on the second bath. It's definitely nice, but it's not a requirement for tenants in our market. 

As has been mentioned, the market fundamentals (diverse and growing economy, growing population, wage growth, etc) are sound in Louisville. For a multitude of reasons, I do SFR not small MF. That being said, I'd recommend you check out 40216, 40258, 40272, 40229, 40291 and 40299 if you are looking for B-properties.

@Syed Ahmed This is a personal decision that must be based on the things you value. The first scenario (buying a rehabbed and rented property) is fairly straight-forward. You'll have to evaluate the 'equity' gained under the second scenario vs. the opportunity costs it presents. The most obvious cost is your time. By spending time on the house, you are forgoing time with your friends, with your family, at your job or business, on a vacation and so on. I would propose that no one can determine the value of these to you other than yourself. As such, you should spend some serious time thinking about how much they are worth.

Also remember that you are also delaying other things as well. This includes finding the next deal, expanding your REI education and anywhere from 1-6 months worth of rent.

That being said, I'd advise making the decision and moving forward. One of the primary keys to your success is taking action. 

Good luck

@Michael Wisotzkey - As was mentioned above, it's critical to know the market. For every week other than the one which culminates on the first Saturday in May, the biggest short-term rental demand for that area is created by the Expo Center. Trade shows are held from January- November and people come in from around the world every week. You will also draw guests who want fairly easy access to concerts and downtown with having to spend Highlands/Germantown money. 

Hunter,

Welcome to BP and to real estate investing. KREIA is a fantastic place to meet other local investors and learn how to get started. It is a not-for-profit organization designed specifically for the education of its members.  The next meeting is January 24th. 

If you have any specific questions in the meantime, feel free to message me.