All Forum Posts by: Sean Williams

Greg,

While the cost for the property manager is important, the quality of the property manager is most important. Don't make your decision so much on the monthly rate but on how effectly the property manager will work for you. Interview potential PM's, don't let them interview you because at the end of the day a good/bad PM can make or break you. May I ask how you found the fourplex? There are far and few between available right now!

@Adam E. 

Congrats on getting started with your investing and I think your plan is a great one, especially since this is what I am doing myself!

I am currently purchasing properties around the UofL/Churchill Downs/Taylor Blvd area for $30-50k, fixing them up ($3-15k) and renting them for $700-950/mo just depending on the property. I really like this area because properties are pretty cheap, there is a high rental demand especially for section 8 and the spread between the mortgage and rent is fantastic. However, I will say if you're counting on appreciation don't plan on it...it would just be icing on the cake.

Personally, since I do not currently have the cash to pay for the repairs I'll do a 20% down loan with a local bank that will finance the home AND repairs then once the repairs are complete I would refinance the home (knowing from the start that if I work my numbers correctly when I refi my 20% down payment will come from the forced equity or sweat equity from the After Repair Value)...this is a great way to own a home without really coming out of pocket when its all said and done. Obviously your situation is even sweeter with the VA loan. I also will use a 10% down commercial loan as well if there property doesn't need much repair.

My advice would be to purchase the home via CASH as you'll likely get a better price, repair as needed then refinance (cash-out) and repeat the process. Commercial loans are great for this and you can blanket loan on multiple properties.

Feel free to contact me if you have any additional questions or if you'd like to discuss over a cup of coffee. I am a local investor and real estate broker. Thanks! 502-727-9784

Very cool, they turned out amazing!!

Hey @Michael Kreitzer this is a great question that many people struggle with and usually leads them to not doing anything. You must great creative! (Brandon's Book through BP is a great start to get your mind thinking!) AND take action.

I will tell you that depending on your price range and area, finding a multiunit is going to be a little more difficult here in Louisville, KY but Chuck highlights one of your best options which would be to live in one half and rent the other...this would allow you to finance it as low as 3.5% on an FHA loan (some lenders can do a 3% down conventional) as an owner-occupant. Also some other things to consider:

*Do you currently own any property that has equity? You could use this as part of your down payment.

*How about any friends or family that might be interested in working with you? While family can be tricky you might have someone that would be willing to help finance the deal or secure the loan or privately finance the deal.

*How about owner financing? This is not as easy to come across but it is out there.

*Tire landlords is another good one, sometimes they'll be willing to sell at a discounted price so they don't have to deal with the property anymore.

*I don't have much experience with commercial loans but I did just have a friend of mine purchase a 4-plex with 10% down. I am actually contacting that loan officer today for more details for myself.

Hopefully this will get you thinking in the right direction. Michael, Im a broker and investor myself so certainly feel free to touch base with me if you like to discuss more 502-727-9784. Thanks!

Great post, very very helpful! Thanks

Thanks for sharing, great to hear others success stories!!

This is very cool! Glad to see others success and demonstrate that these things are really happen in our markets today!

Mainly viewed as a "rougher" area of town but there can be some okay areas. In terms of rental and income there are definitely some possibilities, it just depends if you're comfortable with low-income tenants. There are some great deals for just a few thousand that would generate income but usually is accompanied by headaches. There is also some good Section 8 opportunities.

Dont expect much or any appreciation on the home, mainly just a source of cash flow. There currently is a developer raising funds to revitalize the Portland area in the coming years just as he did with "NuLu" district so you'll likely see more and more investors eating up property while it is still dirt cheap. Not sure if that helps at all?

Thanks Guys will do!!

Hey BP community! Been reading and getting familiar with this awesome resource, this is actually my first post.

I'm a licensed real estate broker in Louisville, KY with over 6 years of experience and have first hand experience working with investors and actively investing myself. Thought I would introduce myself incase there are any investors in the area looking for your Not-So-Typical agent to assist them. Interested in possible new clients and/or collaboration in investing.