All Forum Posts by: Jim Norton

Hi all,

I am in need of one or more dependable general contractors in the Louisville, KY area to manage the rehab of several small 2 bed / 1 bath single family homes near the University of Louisville campus. All homes are 780 sq ft.

I would greatly appreciate any recommendations!

@Steve K. Thanks for the warnings! This is something I will address with the county officials up front before proceeding.

@Andrew Postell Yes, this is what I guessed. Interested investors will want to put this on a 30 yr mortgage to maximize returns. Perhaps a portfolio lender would be a better option than conventional. Thanks for your help!

@Andrew Postell Thanks, Andrew. I will call the county tomorrow morning. Any thoughts on how the appraisal might go?

Does anyone have advice on what to consider from a zoning and appraisal perspective when converting a SFR to a Duplex and flipping it? The SFR is in a neighborhood that is all SFR. There are not any duplex comps in the neighborhood but there are plenty of recently sold duplexes about 6 - 10 miles away.

Will this converted duplex have trouble appraising without comps in the immediate vicinity? Will the property need to have it's zoning changed from SFR to Multifamily?

Anything else I should consider?

Hello, I am in negotiations to buy a mixed use property (3 commercial units, a triplex, a 2/1 SFR, and an efficiency apartment), and need some help with valuing the property. This property is somewhat unique to the area, meaning there are no good comps for trying to determine appropriate CAP rate. The list price is 770k, which is a 7.6% CAP rate. When I break up the property and try to comp it that way, I can comp the residential pretty closely but not the commercial. I am getting to a 625k to 650k valuation, which is close to an 8.9% CAP rate. Any thoughts on how I should be valuing this property? How would an appraiser do this? I will likely use seller financing at 5% with $0 down and cross collateralize another property to put some "skin in the game" on this deal but do not want to overpay. I may have a balloon in 5 years, and my fear is that, if the seller does not want to refinance with me, I will have to go to a bank and if this property does not appraise I will be in trouble. All thoughts/comments appreciated!

Thank you both! @Natalie 

@Natalie Kolodij 

@John Thedford

Hello, I am in negotiations to buy a mixed use property (3 commercial and 5 residential units), and need some tax and legal advice. Specifically, I need to discuss setting up an LLC which will purchase and own the property. I may bring in another equity partner on the deal as well. I will be using seller financing and will need an experienced lawyer to review the note, as well as someone to write an offer letter, etc. Any recommendations on someone in Ft. Myers, Naples, Cape Coral, or the general Southwest Florida area who can advise me? Thank you!!