All Forum Posts by: K.C. Marsh

Good to know. I spoke with River City Bank and they require 20% down for their construction loan, which is far more than I have at the moment. I'll certainly reach out to Amerifirst and Republic though. Thanks!

Thanks! I'm guessing you've went though the process and it was fairly straightforward? 

Does anybody know of a good 203k lender in Louisville, KY? I am looking at a few houses right now that won't be able to pass the appraisal on a conventional mortgage. I've heard that the process can be a nightmare if you get the wrong loan officer or lender. I've tried looking them up online but haven't found any promising information. I don't want to just chose one randomly so hopefully you guys have some insight into this. Much appreciated! 

Much appreciated, Brett, I should be able to make this one. I look forward to meeting everybody. 

Hey, Mike; welcome aboard. I live in Louisville as well but am completely new to this. Will be buying my first house later this year though. 

I really appreciate all of the responses. It's been a busy couple of days due to Thanksgiving but I finally have a bit of time to relax. I hope everyone enjoyed their holiday. 

Thanks, Jerry, I'll have to look into that. All I've gotten is Zillows estimate, although I'm not sure how accurate that is. 

@JD Martin, I completely agree that he would have to have some incentive to sell to me below market or get rid of it when he is getting cash flow, but I really do think it's too much hassle for him. He's told us that his last tenants were a nightmare and we're the ones making it easy on him. If we were to leave, he may not want to find new tenants. I do know that his network is rather small since he's asked me several times if I knew a plumber/electrician/handyman, etc, so he would solely rely on an agent to sell it. I just don't think his heart is in it. There is only one way to find out, though.

@Maggie Tasseron, I'd probably refrain from telling him my REI plans, but I would tell him that I plan to buy a house next year. I'd let him know that I do love the place and may be willing to purchase it, if the price is right. If not, I will be looking elsewhere. I've spoke with both of my roommates about it and they are fine with it, as long as rent doesn't go up now, lol. I've known one for many years and it's mutually beneficial for him to stay.

@James Wilcox, I've been thinking a lot about that lately. The house is located in Hillview, KY for those of you familiar with the area. Although it wouldn't have been my first choice of areas to invest in, I've read about several people on BP liking the area. It's pretty far away from the heart of Louisville, but that isn't necessarily a bad thing. It isn't an area I see a lot of housing for rent, but there's not many vacant ones either. 

@Neal Bratton, I could easily come up with 10% down myself by the end of next year, so I know I could at least get an FHA loan. I would just have to borrow extra if I were to pay 20% down, which would prevent me from paying the mortgage insurance. This, I could borrow from a family member in cash. I'll certainly keep you informed on how's it's going. I may wait until after Christmas to talk with them.

Thanks again, everybody. Cheers.

That certainly is a good incentive for us both. Was it a fairly simple transaction without an agent? I'm assuming your attorney would be doing a majority of the work, right? 

Also, would it make sense to get an appraisal done before negotiating a price, since I won't have an agent to approximate it for me? All I have to go off of now is online resources. I know it's required to get one before the lender approves the mortgage, but wouldn't it be good to have one earlier? 

Much appreciated, guys. I agree that I need to run the numbers for sure but I thought I'd get some quick pointers first. I would like to speak with a few lenders to get an idea on where I'm at, but my credit is good and I'll have a decent down payment. I could even borrow some from a family member and put down 20%. Other than not having to pay PMI, I'm not sure how beneficial this would be though.

Yeah, I highly doubt I could get 20-30% taken off, but it's nice to think about. I'm sure there are many investors that wouldn't even consider it if they couldn't get this discount. I think I'd be happy with 10%. I recall him saying that he still has a mortgage himself, although I'm not sure how much is owed on it. He's hard to read and sometimes seems like he'd love to part with it...other times not.

@Kelly Bankes, what area of Louisville are you in? I'm sure your year into investing has been invaluable as I hope mine is. I just hope I don't pay too much either. 

Hey, everybody. I'm an inspiring investor from Louisville, Ky and I'd like to get some feedback on making my first deal. For the last couple of years I've been renting a 3 bedroom house with 2 others and it's time to break the cycle. Although it's been a while since the owner has mentioned it, he said that he may be willing to sell in the future. If this is a possibility, it would certainly be the most convenient way to start out, especially since I have a lot of stuff. My current roommates have been great for as long as I've known them and I know they are financially stable. Hard to find better tenants in my opinion.

Living there for the time that I have, I know that it doesn't need any major repairs and he's even updated several areas as well. House hacking would free up what I currently spend on rent and what doesn't go to repairs, would go toward another investment opportunity. As much as I'd love to get it for 70-80% of the market value, he may not be willing to let it go for that...although he may.

That being said, what would you all do in my position? How close to market value would be worth it since I'm mainly interested in cash flow? I know you should make your money going in, but assuming I can't, would it be worth my time? I know without numbers it's rather difficult to say, but I'm just looking for ideas. I'm trying to do a bit of homework before I sit down with them. I'd hate to look back at this deal at a later date and realize I only did it for convenience reasons. It seems a great option now and although I could be making more elsewhere, I'd still be living rent free in a house that I'm already settled into.

I appreciate everyone's time and I'm glad to be part of this group. Hopefully, I join the status of investor in the near future. Cheers.

Any more advice out there?

There is one thing I didn't mention. Although I'm planning on putting 20% down, I am hoping to borrow about half of the down payment from a family member. Seems like a better way to go about it so I won't have to pay any mortgage insurance. Originally, I was going to get an FHA loan but I thought it wouldn't hurt to go traditional if I can acquire the funds.

I do still have some time till I purchase, so just hoping to get peoples thoughts. Thanks again.