All Forum Posts by: William R.

You are considering investing in the Portland neighborhood of Louisville from Texas?  My impression is that currently most properties would require a significant amount of time and attention to manage.  It seems like some of the hype over the neighborhood has died down a bit to me. 

I have an applicant who requires a cosigner, so they had a parent submitted all of the paperwork for review.  The credit report came back and they did not meet the minimum requirements.  Now they would like to use their business to co-sign for the property.  I have never had that happen, so am not sure how to proceed.  I do have the businesses Federal ID number, but not sure were to go from there, and how to evaluate credit etc. 

I probably undervalued my 3/2 apartments two blocks from campus.  I also saw some extensive campus housing market research a few years ago before they built Cardinal Town which caused me to raise rent on my apartments significantly.  I also used this in setting the price of the new apartments, but it was evidently our of date as rents have risen.  I still prefer to be slightly undervalue to have higher demand and less turnover.

I haven't turned over an apartment in a few months, but didn't notice any less interest this summer.  I think there will always be an appeal for some students to live off campus and more independently.  I also prefer to rent the same units to young professionals: more rental experience, fewer noise complaints, they remember to pay rent and bills, not as reluctant to call you if something isn't right.  Research also indicates that people are waiting longer to purchase a home, so demand form young renting professionals should be higher into the foreseeable future.

I would consider a great deal in almost any neighborhood and I would consider a good deal in a bit better areas.  With a bit more experience managing properties I feel like I can be a bit more aggressive in up-and-coming neighborhoods, but it'd have to be a killer deal to invest in some  parts of the West End because I've turned down some $5-10,000 deals that cash flow like crazy.  I may think differently if I was a full time investor and had the time.   I would suggest getting a bit nicer of a property for your first few investments instead of something that is going to run you ragged with repairs and difficult tenets.  You wouldn't want to be a landlord very long in that situation.  

I'd also consider proximity of your properties.  I notice that my closer properties get more attention...  Maybe I'm lazy, or just don't like sitting in the car all day.

Highlands is a great area and I live there myself, but I'm not sure about cash flow. I do not have any investments there and have really not looked at the market rents, but I love it here.   Per Sq Ft Sales prices seem to high to turn a profit renting them.

I also believe that a unit with 20 paid applicants before you moved out means it was probably listed below the market rate.

I'm also interested in Portland with the Portland Investment Initiative and all of that hype.

I agree that having an overall plan is important, and starting with an understanding of what your getting into.  I'd also suggest not buying a very inexpensive, difficult to manage property as your first investment.

I think it is wise to manage your first few properties for a while, so you understand the ins and outs of property management and maintenance.  I'm sure others may disagree that its not the highest and best use of your time, but I found it invaluable.

I started with the idea of only buying multifamily in Old Louisville and focusing on students.  That plan has evolved over time, and I rent to very few student.  Most of my residents are young professionals.  My original plan also drastically limited potential opportunities.  I now have properties in a few neighborhoods and see it as a bit of diversification.

Is anyone familiar with Louisville's Portland Investment Initiative led by Gill Holland?  Anyone Investing or have any thoughts?

http://www.bizjournals.com/louisville/blog/2013/10...

http://wfpl.org/post/change-coming-louisvilles-por...

I was approached by an acquaintance to manage their multifamily property last year.  Wanting to stay within the law I master leased the building and leased the individual units, but by going this rout I took on the responsibility for vacancies.  I was able to bill back repairs and maintenance at a fair hourly rate.  Unfortunately, a winter vacancy forced me to cancel our contract.  In the future I do not think I would take on such a deal unless the spread was very attractive and I'd want to lock in an option to buy.  It was important that I was able to cancel the contract with one months notice.  Also, make sure that you are placed as additional insured and have your own umbrella policy. 

I would suggest trying to get on with a property management company or an apartment complex to learn the business.  I thought I had it all figured out several times early on, only to have something crazy happen and bring me back down to earth.  As an owner I would not consider you as a property manager unless you already had a proven track record, so you need to develop that with another company or your own property.

I suggest buying a 3-4plex with an FHA loan. After the first deal you'll never be able to put such a small amount of money down again.

GO RACERS!

Welcome!  

Welcome to Bigger Pockets!

Michael, You could send that my way also, if you don't mind. I plan to do some shopping in the next few months.

Thanks