All Forum Posts by: Michael Seeker

@Allison Nog, like most cities it really depends on where it is.  Some areas are better than others, but it can be very hit or miss.

@Micah Mcarthur, I've used Jay Jackson with SafeAtHome inspections for a number of years.  He can do a full blown inspection or just focus on major systems/items if you prefer.  PM me for his contact info

That is not correct, in fact historical renovation standards will must allow flexibility to conform to current building codes.  Additionally, the restrictions on interior changes are only applicable if you are seeking some form incentive (typically tax credits).  I'm not aware of any historic district that can dictate what can or cannot be done to the interior of a building as long as changes conform to current code.

Thanks for the shout out!  I've since changed my last name which is why it didn't pop up automatically.

As for historic renovations, I've done a lot of these both on single family homes and rental properties.  There is a federal tax credit which is a great tool to use, but was just changed to be spread out over 5 years with the new tax law (lessening the benefit of it).  Some states and local governments also offer credits or grants, but that is something you'd need to research specific to where you want to invest.  With the federal tax credit, you CANNOT flip a house and receive the benefit.  You must own the property for 5+ years after completion or repay a pro-rated amount of the credit if owned for <5 years.  A lot of the time state and local programs will piggyback off the federal program in many ways.  In KY, there is an additional state credit, but the guidelines are the same as the federal guidelines which are quite strict.

Investing in a historic district can be challenging, but it really depends on the neighborhood.  I've seen a wide range of renovations from perfectly historically accurate to atrocious and everything in between.  If you're renovating without credits/incentives, then I'd be shocked if there is any municipality/oversight entity that can mandate guidelines for the interior of a house.  Everything I've dealt with has been related to the exterior and generally they are most concerned about what is visible from the street.  However, if you apply for credits/grants, then you almost surely will have to conform to standards on the interior as well.

I've done a lot of these projects and have never come in close to what was initially budgeted.  That being said, I'm very happy with the results and happy to own the properties long-term.

Hope this helps!  I'm happy to respond to specific questions or connect via PM with anybody interested in this topic.

@Bryan Springhetti - did you and your brother rent on Edgeland Ave back in 2012?

I've got some interested in investing in tax liens in the area.  I won't be able to meet for lunch/coffee, but would love to connect and discuss further.  PM me or shoot me an email if interested.

@Account Closed - we pay water on all of our properties in Louisville and it typically runs right at $25/tenant/month.  If you have 6 couples living in the 1BR's, the bill could end up being about double what it would be for 6 individuals.

@Ramzi Nuseibeh - you can view the statute here.  The first section indicates that the bank account be specific for that purpose, i.e. security deposits.  It does not specify anywhere that you need a separate account per deposit which would be burdensome to say the least.  We keep all of our deposits in one account, which is designated solely for that purpose.  Hope that helps!

Check out NREIG - we use them on our our rentals across two states.  Great service and good response time.  We filed a claim last year and received a check pretty promptly.  Part of the claim is reimbursement and the adjuster actually reached out to us a few months ago to see if we were ready to settle out that part as well.

@Kevin Co - If you have a windows based computer, you most likely have Microsoft OneNote installed on it.  I use this app on my phone and on my computer and love the way it works seamlessly between the two.  You can easily create different notebooks, tabs, etc. to help bucket your different interactions and help keep your timeline straight.

@Arturo Borges, I was recently at a presentation by a good sized local developer here in Memphis and he said they are typically selling homes at 4.5x the land cost (does not take into account custom builds or higher-end homes).  I would think this multiple might be applicable to other markets, but as with everything else in real estate, there are probably a lot more factors to consider.  With that in mind, if a typical house like the one you want to build is going for $450K, then the lot ought to be around $100K.  Hope that helps!