All Forum Posts by: Joel Kleyer

Hello, I am considering taking out a HELOC On a residence we recently bought and renovated. When I say recently I mean within the last month. We are currently living in Louisville Kentucky but my job has the potential to take me to Lexington Kentucky. I am wondering if there is a specific time frame that you must live in a home after you take out a HELOC. If we were needing to move to Lexington would that be an issue if I first secured a HELOC? Any expertise and advice would be greatly appreciated.

I got a HELOC on a primary residence within a month of purchasing the property. This particular bank allowed me to get a HELOC up to 100% LTV (I put 20% down when I purchased). DM me if you are interested in learning more.

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Originally posted by @Natalie Kolodij:

Originally posted by @Joel Kleyer:

@Natalie Kolodij Can you BRRRR in an OZ fund and pull that cash out tax-free?

Any time you BRRRR the refinance part is tax free.

Buying in an opportunity zone doesn't offer any tax benefit unless you roll in a qualifying capital gain (flip won't qualify)

Thanks! I am managing a fund consisting of capital gain money and didn't know if there were any IRS regulations against using the BRRRR method in a QOF.

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@Natalie Kolodij Can you BRRRR in an OZ fund and pull that cash out tax-free?

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Background: I have a friend who is looking to shield some capital gains with a real estate investment in an Opportunity Zone. He is specifically looking for a mixed-use property in Louisville, KY to house a small business he owns and rent out the livable areas.

Problem: I know where the OZs are in Louisville just by eyeballing a map, but I was looking on ListSource and could not find a filter for Opportunity Zones.

Question: Is there a property aggregator site (like ListSource) that allows you to filter only properties that are in Opportunity Zones? I'm thinking of doing some direct mail to potential properties that meet this criteria.

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Originally posted by @Anthony Gayden:

Good morning BiggerPockets,

Last week I started my first direct mail campaign. I bought a list from ListSource and sent out postcards to a few hundred absentee landlords in the area where I want to invest. The postcards will start to go out next week.

Rather than sit on my butt for the next few weeks waiting for responses, I decided to be proactive and go driving for dollars to build my own custom mailing list.

Well it didn't take long to realize that this was probably the slowest and most tedious way to build a mailing list. I spent 2 hours driving around yesterday and getting addresses. When I got home I had to look up each address on the county assessors website and manually type it into my Excel database. That took an additional 4 hours.

So what did 6 hours of work get me? A mailing list with 25 names. I honestly can't even imagine trying to get hundreds of names for a good direct mail campaign.

What was the result of your first direct mail campaign?

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I was wondering the same thing. Would really appreciate it if someone could give a real life example of how this might work.

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Highly suggest reading David Greene's books about investing out of state (his BRRRR book talks about it too). He talks about finding rock stars to add to your team since you won't be able to manage the process in person.

As for the area, I assume you are talking about the houses near UofL. I'll caution you that the area is really hit or miss. Be sure to talk to a good property management company and get their opinion on the houses you want to purchase.

Good luck!

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Originally posted by @Drew Sommers:

@Rob Bergeron Are there areas in Louisville that aren't as hit or miss? I would be OK in paying a higher price if it meant steady cash flow, and less tenant drama.

@Michael Seeker Thank you for the advice. I noticed the disparity between what the homes sold for and what there were listed at. Which is one of the reasons I came here.

@James Wilcox Absolutely on the team building. I made that mistake when I was investing in Phoenix and am still paying for it three years later.

You could try the PRP (Pleasure Ridge Park) area in SW Louisville as @Rob Bergeron mentioned. I have a friend who has a portfolio of 30+ SFH in the area. It's a blue collar neighborhood and houses priced in the sub $100K range. Hope this helps.

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Louisville, Kentucky

Originally posted by @J. Clark Baird:

@Joel Kleyer

Do you mean Shelby Park and Smoketown?

Yes

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Louisville, Kentucky

Great article; thanks for sharing. Awesome to see Butchertown revitalized and I truly believe the area between Old Louisville and Germantown is ripe to see the same development.

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Louisville, Kentucky

All Forum Posts by: Joel Kleyer

Joel Kleyer has started 2 posts and replied 37 times.

Post: How long do I need to wait to move after securing a HELOC

Post: OPPORTUNITY ZONE TAX HACK - FLIPPING

Post: OPPORTUNITY ZONE TAX HACK - FLIPPING

Post: Finding Opportunity Zone Properties

Post: Driving For Dollars is a Lot of Work

Post: Interest vs Principal. How to negotiate seller carry?

Post: Kentucky rental homes

Post: Houses under $60k worth investing in?

Post: Why quickly changing Butchertown is the 'it' spot in Louisville

Post: Why quickly changing Butchertown is the 'it' spot in Louisville