Thoughts on Louisville Market for Investors?

Question

Hi! I am a new investor and I am looking to purchase my first property. I am looking into Louisville since I will be moving there. I have been researching the Louisville housing market and have found mixed reviews. I am wondering what are your thoughts on the Louisville market. Thank you in advance!

Rob Bergeron · Answer

I generally am a believer in forcing appreciation to insulate yourself from risk and future overhead. Our market has tons of opportunities and great people to help you get there. I believe our market is undervalued by 20%-30% relative to our peer cities. Take educated action! Happy to plug you in to my infrastructure.

Chuck B. · Answer

I’m a long time Louisville landlord. The biggest mistake I see today is out of state investors trying to force $2000+ rents on what should be a $1400 (3br) neighborhood. Maybe the house cost too much, or they put too much into the renovation, or both… so they feel compelled to hit their target return on what should have been a more modest house/base to begin with. You can get 2000-3000 rents in lots of places in Louisville, but not in ALL the neighborhoods. There’s a huge need in Louisville for affordable housing if you can provide a quality (3br) product for $1200-$1400 per month. You have to buy it right and not go crazy on the renovation budget. The other mistake is that they have no criteria for good tenants, so they rent to people that will cause nothing but problems in the future. The FICO score is the best indicator you’ll have of how much someone has their act together.

Rob Bergeron · Answer

Here is the current rents for section 8 if that helps anyone analyze deals! New Section 8 Rental Numbers

Chuck B. · Answer

@Shaan Puri - East Russell (not west), east or central Smoketown but not west, east side of Shelby Park, Camp Taylor, Shawnee and east Portland (not West). Some of these neighborhoods are big and vary by area, or have really negative things happening on one side of them, so you can't (or probably shouldn't) consider the entire neighborhood when looking around.

While I don't have any rentals there, I look at Chickasaw regularly. There are some nice areas there that would be great too.

Rob Bergeron · Answer

Happy to! Definitely join KREIA (our local REIA). C-D areas will cashflow the most. You should get some appreciation anywhere here. Let me know when you're in town! We can hit up Surnegos.

Abtahee Ali · Answer

Hi! Thank you for your feedback. I have been looking at a few Multi-family homes to purchase. I am looking for more cash flow than a major appreciation investment. Louisville prices are appealing compared to my current market. I am still doing my due diligence but it is great to get input from investors who are invested in the Louisville market.Are you located in Louisville? I will be moving there in January. If you are available for coffee to further discuss Louisville real estate, let me know! Thank you for your help!

Abtahee Ali · Answer

Thank you for your help! I will be looking further into this method and the forum you have linked as well.

Shaan Puri · Answer

Thanks @Chuck B.!

Shaan Puri · Answer

In the same boat as you @Abtahee Ali, I have started to look into neighborhood and targeting cash flow. Would you be open to connecting and exchanging notes?@Chuck - For LTRs, which neighborhood(s) have you had good experience?

Donato Callahan · Answer

Personally, I'm impressed with the local rent growth here - especially for 3-Bedroom rentals. Rents have grown almost 20% in the past few years with the highest rents in the northeast side of the city. I'd be looking for deals over there.

Thoughts on Louisville Market for Investors?

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