Real Estate Agent · Louisville, KY · Member since 2016 · 78 posts · 40 votes
Hello, everyone, my name is Ian Hooper. I'm a high school teacher from Louisville, KY, and getting in to the investment game, this summer. My current goals are to make a deal on a small multi-family property within the next two months, and to complete a second within the next nine months.
I'm grateful for this resource; I learn more with every mouse click.
Investor · Louisville, KY · Member since 2010 · 55 posts · 42 votes
10y
@Stephen Lewis Various places, I bought a couple that were for sale by owner, two more from a company that bought bulk REO's from the banks, then the remainder on the MLS, but that's dried up.
I bought my first property in July 2009 for $6k, it was an estate sale and it needed a complete rehab, I ended up with way too much money into that property, but it was a great learning experience. Second property was a FSBO, an apartment building on Portland Avenue (across from the Portland Museum), a wholesaler had it under contract and was asking $35k, I ended up paying $17k, rents today for $1700. My best deal to date was a listing by Econohomes, they were advertising on Craigslist a 3 bed, 1 bath home on Market Street for around $15k. At the time, that did not sound like a deal but I looked anyways, turned out it was tri-plex and I negotiated them down to $8k. I had about $8k in repairs and I have it fully rented today for almost $1300.
I was fortunate enough to have another business that was surviving the recession when I started. Banks were not loaning money during that time so I had to find properties I could buy for cash, thus I ended up with Portland properties. I don't regret going that route but, if I could do it over again, I would have bought Germantown properties for a little more ($20k - $35k) which would have tripled in value, higher rents, and easier tenants.
Investor · Falmouth, KY · Member since 2016 · 37 posts · 13 votes
10y
Welcome aboard. Might I suggest hudhomes.com as a resource. It seems the inventory in the Louisville area is much greater than hear in northern Kentucky. You might also check out hudsomandmarshall.com as they have a decent inventory in your area. If you go the auction route, be sure to check them out first.
Real Estate Agent · Edgewood, KY · Member since 2015 · 59 posts · 20 votes
10y
You can try https://www.hudhomestore.com/Listing/PropertySearchResult.aspx?sState=KY&sLanguage=ENGLISH
Do you have a team together? An investor friendly agent, attorney, accountant, General contractors , etc. if not, let me know. Whether you investing in east end, shivley, Dixie hwy, or hurstborne, it can be a learning experience.
Where are you thinking of investing?
Real Estate Agent · Louisville, KY · Member since 2016 · 78 posts · 40 votes
10y
I have an agent. We met when I was purchasing my home, and then he helped me sell my mother's condo, when she died. He is an investor himself, and is the person that sparked my interest in the industry.
I've got an attorney for some stuff, but I don't have a real estate specialist nailed down yet. I was referred to one at the KREIA month last month, and I plan to connect with him this week. Please recommend someone.
I have a GC connection that is currently working on some of Portland improvements, but I have yet to approach him. I have a couple of other names. Please recommend someone.
I need an accountant. Please recommend someone.
I've spoken with some loan officers, last week, and have submitted financials for pre-approval. Please recommend someone.
40214, 40215 are where I've done most of my research and leg work. I'd like to hear some experience from folks that focus in the West End investors.
Real Estate Agent · Louisville, KY · Member since 2016 · 146 posts · 135 votes
10y
Welcome Ian. I am a newbie from here in Louisville too. Home of the great, late Muhammad Ali! Best of luck to you sir and who knows, maybe we can work together some day.
Investor · Louisville, KY · Member since 2010 · 55 posts · 42 votes
10y
Hi Ian, I have 22 doors in Portland :) There's lots of advice I can give you, but the single most important is, screen your tenants well, background, credit, etc. Proper screening can make you or break you, especially in the Portland area.
Real Estate Agent · Louisville, KY · Member since 2016 · 52 posts · 19 votes
10y
Welcome to the party @Ian Hooper! I'm a new investor in Louisville myself so feel free to hit me up if you ever need anything. Other than that, good luck :)
Investor · Louisville, KY · Member since 2010 · 55 posts · 42 votes
10y
@Stephen Lewis Various places, I bought a couple that were for sale by owner, two more from a company that bought bulk REO's from the banks, then the remainder on the MLS, but that's dried up.
I bought my first property in July 2009 for $6k, it was an estate sale and it needed a complete rehab, I ended up with way too much money into that property, but it was a great learning experience. Second property was a FSBO, an apartment building on Portland Avenue (across from the Portland Museum), a wholesaler had it under contract and was asking $35k, I ended up paying $17k, rents today for $1700. My best deal to date was a listing by Econohomes, they were advertising on Craigslist a 3 bed, 1 bath home on Market Street for around $15k. At the time, that did not sound like a deal but I looked anyways, turned out it was tri-plex and I negotiated them down to $8k. I had about $8k in repairs and I have it fully rented today for almost $1300.
I was fortunate enough to have another business that was surviving the recession when I started. Banks were not loaning money during that time so I had to find properties I could buy for cash, thus I ended up with Portland properties. I don't regret going that route but, if I could do it over again, I would have bought Germantown properties for a little more ($20k - $35k) which would have tripled in value, higher rents, and easier tenants.
Louisville, KY · Member since 2016 · 42 posts · 1 vote
10y
Wow those are some great deals. I have one property that I bought at the auction for $2000. I'm slowly rehabbing because I don't have much money. I'm seeking a way to get funding to rehab and let the cash flow pay back the loan. Those are some great deals you've acquired. Congrats
Investor · Louisville, KY · Member since 2010 · 55 posts · 42 votes
10y
@Stephen Lewis I paid for many rehabs on credit cards, though I would do that as a last resort because your credit score will take a big hit if you start maxing them out. Once the rehabs were done I was able to get a loan via River City Bank to pay off the cards because I had a property that was rented. Take it slow, look for deals on Craigslist and Habitat. I once bought a whole set of kitchen cabinets for $100, included the sink, faucet, etc... guy put in a new kitchen and got tired of the old stuff sitting in his garage :)
Some other thoughts for funding...
- Have a car that's paid for so you can get a loan on it again? - Friends or Family? - Credit Cards (last resort)? - Bank line of credit? - Crowd Funding? - Borrow against your retirement account, another last resort tactic? - Hard money lender?
Keep us posted and let us know how you do. For $2k, was this a west end house? If so, watch your budget carefully, those $2k houses sound like a good deal, but the cost to rehab them can be more than they are worth when you're done.