Rental Property Investor · Louisville, KY · Member since 2019 · 32 posts · 3 votes
hello everyone,
First time posting. New investor into Louisville market. I've been looking for past few months into SFR, duplex for cash flow. I'm conflicted between rented properties vs. Rehab and rent properties. On one hand, you don't leave room for equity and the other is the risk of rehabbing and not renting.
Any advice appreciated
Also, what areas are you guys looking into. Lately have focused in old Louisville and shawnee.
Real Estate Agent · Louisville, KY · Member since 2017 · 1k+ posts · 1k+ votes
7y
Hello Syed,
Are you local or long distance? It's much easier to buy turn key rentals, but you lose the equity. If you find a reputable contractor I lean to fix and rent personally.
I like Shawnee, Ferncreek, Shively, and Iroquois personally.
Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
7y
@Syed Ahmed This is a personal decision that must be based on the things you value. The first scenario (buying a rehabbed and rented property) is fairly straight-forward. You'll have to evaluate the 'equity' gained under the second scenario vs. the opportunity costs it presents. The most obvious cost is your time. By spending time on the house, you are forgoing time with your friends, with your family, at your job or business, on a vacation and so on. I would propose that no one can determine the value of these to you other than yourself. As such, you should spend some serious time thinking about how much they are worth.
Also remember that you are also delaying other things as well. This includes finding the next deal, expanding your REI education and anywhere from 1-6 months worth of rent.
That being said, I'd advise making the decision and moving forward. One of the primary keys to your success is taking action.
Real Estate Agent · Louisville, KY · Member since 2017 · 1k+ posts · 1k+ votes
7y
Hello Syed,
Are you local or long distance? It's much easier to buy turn key rentals, but you lose the equity. If you find a reputable contractor I lean to fix and rent personally.
I like Shawnee, Ferncreek, Shively, and Iroquois personally.
Real Estate Coach · DE · Member since 2013 · 64 posts · 85 votes
7y
Great post. I have been at this a very long time. I see it from both sides as I acquire non performing debt, reo's, tax liens mostly direct from asset managers at the bank. For example, We just acquired 14 Single families in Dayton OH which is a great emerging market meeting all economics I love in Class B= to C+ neighborhoods. Some of my investor buyers want us to get the properties fully rehabbed for them and get them placed with a management company as we don't manage. I feel thats a conflict of interest myself and never want to be a property manager. The others want to do the work themselves to get the equity in the property doing their value add. I sell them either for cash or seller finance so if you set yourself up with options you can really grow your portfolio nicely. Wish you all the best.