Looking to Invest and Make Connections in Louisville

[Brianne H.]

Hi, I'm a Canadian looking to invest in the US, and in my research of various markets, I seem to keep coming back to Louisville, KY. Some of the positives that I see are:

- A significant sized population that's growing

- Property taxes are fairly low

- Landlord-tenant laws are supportive of landlords

- Cost to purchase a property isn't astronomical 

- Cost of living and diversity of jobs seem good 

Beyond that, I don't know much about the market, or specific areas that tend to be best for cashflow. I'd like to be able to do as much research as possible from a distance so that when I make the trip out, I have a better understanding of the areas and be better able to analyze deals. I'd also like to start meeting others and making connections, as I'm hoping to be able to purchase my first US property in the next 3-6 months (assuming things go to plan!) I'm looking for cashflow, and would like to buy a 3- or 4-plex, appreciation is a bonus but cashflow is the main consideration. 

- What are the pros/cons that you've found for investing in Louisville? 

- Are there other markets in Kentucky that you've found to be better cashflow? 

- Are there things that you've come across that are not investor-friendly? (Ex: A certain area has rent-control, or there's a little-known provision in the landlord-tenant act that strongly favours the tenant, or something else?) 

- Have you been able to easily find good people to work with? Handyman, property manager, realtor, etc? 

- What's your average cashflow per door? Or cash-on-cash? Or Cap rate? 

Thank you! 

[Erik Hitzelberger]

@Brianne H. Your analysis of the macro trends in Louisville is spot on! Besides the obvious benefits of investing in a growing market, the rest of the factors mean that you get consistent returns when investing here. The risk of wild variations in performance is often overlooked by many new investors. I'm glad to see that you accounted for it.

I'm certain the video @Clay Smith posted is a great source of info.  I'll add some ballpark numbers here as well. There will obviously be variance, but these should be readily achievable. 

C-) Cash Flow Areas (Fringe, but not war zone) - 40215, 40208

Price $60-100, Rents $700-1000, Cash Flow - $250-300 Appreciation - 1-2%

B-C) Cash Flow Areas (Solid Neighborhoods) 40216, 40258, 40272, 40214

Price $90-$140, Rents $900-$1300, Cash Flow $200-250, Appreciation - 3+%

B) Mixed Cash Flow and Appreciation  40228, 40229, 40291 

Price $120-$160, Rents $1000-$1500, Cash Flow $200-250, Appreciation 4+%

A) Appreciation 40299, 40241

Price: $130-$180, Rents $1200-1600, Cash Flow $100-$250, Appreciation 4+%

As far as ROI, we still see double-digit returns on leveraged investments.

I hope this helps and feel free to reach out if you have any additional questions.