Is this a Deal in Louisville, KY

[Tyler Bodi]

Louisville, KY investors is this a deal?

I have a 2 bed 1 bath 850 sq ft  house under contract in Shively 40216.

Purchase price of $50,000 and an appraisal of $74,000 (67.5% LTV) . The house needs minor cosmetic upgrades but is practically rent ready. I also have a renter lined up.

For rent I believe I could get $650 pretty easily based on rentometer and craigslist posts. PITI on a 30 yr fixed load will be around $330.

Follow up question: what would a typical hard money/ private money loan on deal like this look like in our area?

I am working with my bank to finance the deal and am wondering if hard money/ private money may be a better option since I am having to do some creative things for the down payment. 

[Jason James]

@Tyler Bodi 40216 is a big area and depending on where you are at in the 40216 this may be a fair deal or a not so good deal. I personally like PRP better than Shively. If you are north of the Watterson the property values are a little lower and the rent a little lower. If the appraised value is $74k I would like to be all in at roughly $50k. That's all in meaning any repairs done and ready to rent. 

You should get a better rate and term from your bank. Hard money will be a little pricey but if this is a deal then it may be a good way to get into the deal and then look for some better financing later. 

Hope that helps.