All Forum Posts by: Jay Leisten

The best advice I ever got was to do my first one all cash. That way any mistakes you made only financially affect your past. When you leverage it affects your future. That can be for good or bad, so why risk future money when the you that is in the present doesnt know what they are doing. Right now I am using leverage to acquire more deals, but somewhere around 15 units I'll be switching back to all cash purchases. The thought there is that within 2 years I expect a little down turn in the market so I will be living off the cash flow of the 15 and using all my work related income to buy cash assets.

I'm curious as to why the new plan cuts inside of simpsonville as the current city expansion seems to be passing that point on 64 already?  It looks like they might be tapping into the end of the Joe Prather highway that runs to Ft Knox, which runs to brandonberg and across to corydon Indiana. If so thats a legit bypass route for I 64 travel east and gives traffic avoidance for 65 north travellers as well.

Get their parents on the lease. Also take excellent before and after photos. on my first deal one of the students created unwanted issues with neighbors, and after I forwarded those complaints to the tenants, that tenant moved on and was replaced with a different  friend of theirs along with a rent increase. ;)

Investment Info:

Single-family residence buy & hold investment in Louisville.

Purchase price: $51,000
Cash invested: $6,000

Light rehab single family 3/2 and 4/1 that we expected to full BRRR in the 2 months.

Weve converted these to long term financing now and had to leave about 3k in them so not a full BRRR but they are starting to provide a return now. we had a furnace and waterheater failure in the second one which was unexpected.

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

Proximity to university and rent returns in relation to purchase and rehab cost.

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

One of my contractors introduced me to another investor who was downsizing.

How did you finance this deal?

Hard money that converted to long term lending month 6.

How did you add value to the deal?

New furnace and water heater in one, as well as paint, flooring, new garage doors and gutter.

What was the outcome?

missed a full BRRR on one due to the furnace and waterheater which were unexpected additional costs, but now that long term lending is in place, expected cashflow is 200-300 for the pair per partner depending on reserves.

Lessons learned? Challenges?

Our contractor disappeared the last week of renovations, which meant I had to hang gutters and make some minor repairs along with my wife and a friend. Also, weve learned to get the bug man in early to treat, as one of the 2 had a pretty bad roach problem that needed to be remedied prior to placing a new tenant.

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

Im a licensed realtor so I handled the transaction, we worked with Surepoint equity on the hard money, and our usual closing/ title team at Rounsavall Title Group.

I'd join you for a meetup, if you havent checked out KREIA yet, you should. Id be happy to introduce you to a few people around the room.

If you look at avg rents vs the cost to purchase, Churchill Downs and shelby park are the 2 best locations. They also arent subject to as much NIMBY intrusion from the neighborhood watch groups.

 see the other response for terms. we purchased late may, completed late july. had an offer the first few days that fell through due to an issue that went uncorrected by GC that was in their scope. it took another 5 weeks to get a second offer after 15k in price reductions and 3k in additional repairs. In the future we will be doing our own home inspection to verify work which may otherwise go unseen.

10% of purchase price down, 10% interest with no payments for 6 months, 2 points on the purchase and 2 points on the sale. 500$ appraisal as well.

I have a first look deal with a few wholesalers. in this case we put in a lower offer, and he couldnt find a buyer to beat us on terms.