I saw this mult-family pop-up and I am wondering just how bad it could be.
My current goal is to clean up some personal finance, but I keep looking at properties to try and keep up with pricing.
3225 Fordhaven Rd, Louisville, KY 40214
There was another 4 unit on the same road as this one that came up for sale for around 180k.
If someone is in the Louisville area, then maybe they can explain why this is either a great deal or a disaster.
Note: I am not an agent and have not affiliation with the property above. I came across it on realtor.com
It's not an area where you can expect appreciation. I actually own a property not far from there. As long as you have an interest in cash flow to hold for the long haul, you should be fine. That said, you can expect this property to have problems like: no functioning HVAC, electrical problems, old water heaters, low rent, old appliances, worn carpet/torn linoleum, leaks, etc.
Sometimes the rents are not able to be raised for that block, or you may not be able to justify raising them enough for a good return after repairs. Call around and consult Rent-o-meter.
If it really is 8 units it will not be good, there will probably be a ton of deferred maintenance so the low purchase price comes with strings attached that you will have to fix a lot of things to avoid being a slumlord.
Thank you for your replies. I just realized I should have posted in one of the local area forum areas.
looks like rent range is between 500-650 for 2/1 on that block.
250,000/8=$31k per unit. Seems high, depending on what work needs to be done. Looks like it’s close to 2% but be careful and KNOW what your expenses are...... like others have said rent will stay low in that area and will limit your potential for “appreciation”. This is a long term hold, unless you get a way better deal on it
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you