All Forum Posts by: Chuck B.

@Jeremy Jackson For a more middle or low income property, I almost never replace carpet, though I will clean it and leave it if it's still in good shape.  

My preference would be to refinish the hardwood if it's up there.  I have never used laminate flooring as I've been told repeatedly from other landlords that it does not hold up for the long run, especially if anything is spilled on it and left that way.  I have been using Shaw click-together vinyl plank (looks like wood and has a hand scraped texture) from Lowes but it's much more expensive, usually $2+ a foot.   It looks fantastic though and the folks that now have it universally love it.  

On first floors, kitchens and baths I'm using a lot of the wood-look plank ceramic tile too.  It looks amazing as well and is a lot more durable than even hardwood. 

I think I spend more than most folks on this stuff but my goal is the least amount of replacement and repair over the long run.  Hopefully.  :). We'll see...

Ps.  I don't think you should cut the rent to $820.  Especially with section 8,because it's more of a timing issue than it is a funds issue.  They tend to come in waves as the local housing authority releases paperwork or whatever.   You just have to market regularly and be patient.  And I'm getting $850 market rent in Shawnee as well now.  

Let me know if I can help with anything.  

Best,

 - Chuck

@Vincent McClendon - I'll be there. I hope there are some interesting deals for the shark tank.  

Everything I own is in the urban service district so it's good news for me.  Outside of the USD I'm not sure it's going to be very measurable.  The recent (and occasionally giant) PVA increases undoubtedly made a rate reduction possible.  

@Michael Richardson  - Welcome to BP, fellow Louis'villian!

Wholesalers in Louisville... I've heard they exist, but I've rarely seen a deal from one that makes a much sense to me.  Maybe they're around and they're better suited for people flipping properties, as entirely different math can apply there versus buy-and-hold properties.  

Multi-family has been very hot for quite some time.  It's hard to find a good deal on purpose-built stuff.  Then again, if you're less interested in making a great return there's always something that can be bought.  

My best advice for you... don't buy ANYTHING with a finished basement.  :)

Please don't hesitate to yell if I can help with anything.  Also, check out the Louisville Sub-Forum here on BP.

Best,

- Chuck

I'm fortunate in that my partners are all serial entrepreneurs and we basically work all the time at something or other.  Real estate eats into my days but our "daytime" company consumes a lot of time at nights and weekends, so it's all a wash.   

A friend and co-worker is interested in REI so I'm trying to encourage that along.

You have to find the right (small/local) bank but they're out there. I just got a loan for a SFH rental in my LLCs name, 10% down, 20 year amort and fixed for five at 4%.

Different banks for different classes:

Cheap houses under 50K - 20% down, 7 to 10 year loans, fixed at 6.4 for the first five

Houses that are 50K-100k - 10% down, 20 year loans, fixed at 4% for the first five. 

Houses that are > 100K, 20% down, fixed for 30 years around 4% (typically purchased as owner occupied).  

@Marina Sud! its like an REI party in here.

@Jason James - Were those Marina's deals?  I saw she had two in the area.

Oak Street and Shelby between Oak and the train tracks has a lot going on (including our offices, ha!) and is undoubtedly the most promising area in this neighborhood right now.  Access Ventures, The Park and Sojourn are right here as well.  Directly south across those train tracks is the new Underhill development and just east of this area will be the new winter/Boyd Moving development.  

Camp and Ormsby are arm pits, those are going to be the hardest to turn.  There's an outstanding, newer (15 yrs old?) house at Camp and Clay, 3/1 or 3/2 I think, it's one of Michael Mawood's listings. The ask right now is 50 and it needs 10K to be excellent.  I'd buy it except it's right across the street from that bar and there's way, WAY too much sketchy traffic hanging out there at night and weekends.  I wouldn't be able to keep tenants in it nor would I want to deal with all of that.  If that bar would go away I'd be all over that house though.  

The houses west of the park are going to be an up hill climb too.  With that said, there are folks buying ALL around here and a lot of the bad tenants are being pushed out by owner occupants and people like myself that will only place good tenants.  

Would love to catch up if you'd like to have a coffee, yap, etc.  Saturday's are best for me, maybe late morning coffee and then we'll car pool it around the 'hood?

Best,
 - Chuck

@Justin H. - Hey there, long time no see!  

@Pavel Reyes Valdes has got my number.  My office is on Shelby Street and I just closed on a 3/2 on Shelby Pkwy, did a light cleanup and rented it for $1,050 a month.  I believe that will be a $1,200+ rental in two or three years and price appreciation has already begun.   I'm meeting with an owner this weekend to negotiate for another one as well, that's how much I believe in the area.

With that said, it's a street-by-street thing but I think this area is going to turn.  It's definitely a path-of-progress type bet though when I buy these places.  They cash flow fine though, so no worries about waiting it out. 

The area I think will fully turn first is quite small... just a few streets.  Some of these streets may be years away.  Let's get together one Saturday and I'll give you a nickel tour of the area and give you my thinking on it if you like.

Best,
 - C