All Forum Posts by: Wendell Clark

Quote from @Garrison Haddon:

Hey everyone, I'm an investor from California with properties in northern Indiana and looking to get into the market in the Lexington, Ky area. I am still learning the market and trying to decide where in Lexington or what surrounding city I would like to focus on. Cash flow in the area lacks a bit compared to what I'm used to in northern Indiana, but I'm drawn to the growth potential I see. 

Do any current area investors have recommended neighborhoods or suburbs to focus on? I'll be purchasing a handful of single and small multi family units a year with plans of scaling up as time goes on. Right now Nicholasville and the area north towards Lexington interest me, along with Georgetown. Thoughts?

Thanks in advance everyone, looking forward to buying in the near future and will be traveling to the area in a few weeks if anyone wants to meet up.

 Garrison,

Feel free to reach out for specific questions.  I live in Frankfort, KY, and work in Lexington. 

Wendell 

Background:  I live in Frankfort, KY and the City does not have any record of having an easement for the sewer line or drawing where the sewer line runs once it is off my property. 
1.  With no apparent easement, am I responsible for replacing and repairing my sewer line that runs from the edge of my property down 30 yards to connect with the City's main?  If my neighbor refuses is my only recourse a lawsuit?  It appears the old line is terra cotta and eventually will need replacing.

2.  Does anyone in Central KY know someone with an excavator that I can hire to dig up the line to figure out precisely what I am facing?

Brian,

Thank you for this wonderful amount of information. I am grateful for your willingness to share.

Wendell

Dalton,

I live in Frankfort and am happy to help.  Another person you need to get to know is @James Wilcox.  He is always happy to assist new investors.

Wendell

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $120,000

Bought 2/1 off-market and converted to 3/1.

What made you interested in investing in this type of deal?

It was an off-market deal that with renovations will come close to the 1% Rule. Plus with the renovations we are doing, we shouldn't have any large capital repairs for many years.

How did you find this deal and how did you negotiate it?

A real Estate Agent contacted me. He know this house was exactly what we were looking for. We started at $95K but when our contractor estimations came back, we lowered our asking price to $90k. The buyer accepted.

How did you finance this deal?

Paid cash along with repairs

How did you add value to the deal?

converting from 2/1 to 3/1

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jordan Hall with Century 21 in Frankfort, KY

Quote from @Eric Salgado:

I bought a 2 bed 1 bath out of state (Kentucky) the property has a basement area and attic. Both are not to code so they are not counted as liveable space as well as not counted as a bedroom. My question is do I add ceiling height to the attic by making it a dormer which would count as liveable space or add egress windows to basement to make that liveable space. Both would put me significantly over budget especially the attic height raising. Does anyone have experience with this and a recommendation on which one is better for a value add as well as getting section 8 to count as a bedroom.

 First question, where in Kentucky did you purchase?  Maybe you can get a second opinion on the egress window.  My suggestion is if you can put in an egress window with a few dollars, the increase in value of having another bedroom should offset the costs—best of luck.

My suggestion is to be wary of investing in towns with only a small private institution.  Those institutions have a financial incentive to have their students live on campus.  So, therefore, your pool of potential renters decreases dramatically. Instead, my suggestion would be to look for cities/towns with a smaller population but still a public college/university in the area. These towns want to keep you happy because likely they don't have enough on-campus housing.

Quote from @Christie Speciale:

Quote from @Wendell Clark:

Quote from @Christie Speciale:

Changing directions here.. looking to invest in long term rentals in TN (likely duplex but will consider a single family residence). I was considering Memphis but have been turned away by several opinions (mostly people who are not investors).. Also looking at Chattanooga..

Any opinions, suggestions or comments?! Input on the areas I mentioned? Any other areas I should be looking at? 

Thanks!!

 

 Have you considered Knoxville?  I-40 and I-75 cross the city, a large University, just outside of the Smokey Mountains, and Oak Ridge and TVA are not too far away.  Just a thought.

 I have.. are there any areas you’d suggest? We are not familiar with the area AT ALL! Thanks!

I lived in Knoxville several years ago, but I do not hold any property in TN (at the moment).  Maybe someone can suggest a specific area.  I think all of Knoxville has potential because of what surrounds Knoxville. Best of luck!

Quote from @Christie Speciale:

Changing directions here.. looking to invest in long term rentals in TN (likely duplex but will consider a single family residence). I was considering Memphis but have been turned away by several opinions (mostly people who are not investors).. Also looking at Chattanooga..

Any opinions, suggestions or comments?! Input on the areas I mentioned? Any other areas I should be looking at? 

Thanks!!

 

 Have you considered Knoxville?  I-40 and I-75 cross the city, a large University, just outside of the Smokey Mountains, and Oak Ridge and TVA are not too far away.  Just a thought.

My suggestion would be to stick with your original offer.  If someone outbids you, then OK, there will always be other properties.

Best of luck!