All Forum Posts by: Michael Seeker

Per my original post, there's a huge need to be able to access data from anywhere so never really spent any time on a non-cloud-based option.  I have built out a cloud-based PM site that is 100% tailored to my business.  It does not have the bells and whistles of the paid services, but it allows us to interface with our tenants the way we want to and manage our accounting and maintenance requests at a level that was not available (or user-friendly enough) from any of the 3rd part vendors I've reviewed.

From the various online software we've demo'd within the past year, we were close to going with Buildium or RentecDirect but ultimately decided something proprietary would serve us better long-term.

I have not invested in Portland and do not plan on looking at anything there in the foreseeable future.

@Kevin Hart - a lot will depend on what part of Louisville you're looking at.  If you looking in NuLu or The Highlands, everything looks different than if you're investing in say Shively or PRP (and likely by a factor of 2x - 3x).

Generic numbers on the items you listed are likely to be very bad if you do not base them on the specific location and property type you're interested in.

Is there a specific property or area that you're focusing on?

What is current total gross rents?

@Fredie Robinson - this article just came out today in InsiderLouisville, check it out: 

https://insiderlouisville.com/economy/short-term-r...

@Fredie Robinson - I think you hit the nail on the head with great locations.  The problem is that you're going to have a hard time finding a sub-$200K turnkey house in those areas, especially if they are within walking distance to happening spots.

You might check out some of the streets in Clifton neighborhood off of Frankfort Ave (near Silver Dollar).  There are a lot of smaller to mid-sized homes and the neighborhoods are more transitional/affordable than NuLu/Highlands

Hey @Brian Vargas - welcome to Bigger Pockets!  I'm an active multifamily investor in Old Louisville and believe I actually sold your wife that 4-plex back in 2012.  Feel free to PM me if you and/or her would like to connect sometime.  I'd love to hear how things are going with that property!

 I live in Memphis but 95% of my investment properties are in Louisville.  I've been investing there for almost 10 years

@Kyle Schlosser - despite all of the replies on here it doesn't look like you've got clear direction yet.  There are two types of lenders for your scenario, residential and commercial.  The two are very different and depending on who you talk to you'll get widely different answers.

Residential
-Can do 1-4 unit loans with 30 year amortization
-Property must be held in your name, not an entity
-Underwriting will be to Fannie/Freddie guidelines which means rents will be heavily discounted or excluded for purposes of calculating your DTI ratio
-Pretty much any bank will have somebody that can do this and there are infinite resources online.
-In my experience, most people doing these types of loans are relatively new to banking/lending and may know less about the loans they're working than a trained monkey.  Verify anything that doesn't sound right to you.
-Underwriting guidelines are published and available for review - this Fannie grid should have any info you need regarding what requirements are and what type of loan structure you can get based on your personal factors.

Commercial
-Can do any number of units, typically 20 year amortization with 5 year term and 75-80% LTV
-They prefer you hold property in an entity
-Rates are generally 25-100+ basis points higher than residential loans
-Underwriting is in house, much more flexible with loans than residential
-People doing these loans typically have a long track record in the industry and are very knowledgeable about the products they're offering

It sounds like you spoke with commercial lenders at these small banks, and they assumed you wanted a commercial loan.  If you want a residential loan, you're probably better off going with a big bank with regards to terms and rates.

Hope this helps!

There are all types of visitors with wide ranges of budgets/desires coming into town for Derby.  People will definitely pay a premium to be walking distance from the track and many B/C parts of town are in high demand just due to the overwhelming volume of people coming in.  That being said, I don't think you could "make your year" on one weekend near the track and I suspect anybody paying a premium to stay walking distance to the track in a mediocre neighborhood/house would not leave the place in good condition when they go.