Top 4 Flip & BRRRR Neighborhoods in Louisville November 2019
Updated: Nov 24, 2019
If you want to get rich it's best to dig where there's treasure. So where is the booty in Louisville? Here are 4 fertile hunting grounds where real estate loot abounds.
In total I ran the numbers on 18 different neighborhoods. I only used properties within each neighborhood that were similar enough to be "competing properties". Then I sliced off the bottom 10% and the top 10% tranches and looked at the price spread. I also analyzed marketing times which is how fast or slow properties sell. This paints a pretty accurate picture of the neighborhoods and their market conditions.
Out of 18 neighborhoods here are four of Louisville's; in alphabetical order:
Germantown- Germantown returns a 170% margin between the top and bottom tranche. I only included 2 bedroom houses with no basement in my analysis. Why would I do that? Two good reasons. Foremost is that it made the properties in my data set very similar giving my results more weight than if I had broadened my search parameters. Second, there's a common and incorrect belief that you should only buy 3 bedroom houses and that's poppycock. In appraisal speak, it's market acceptance that's important, and 2 bedroom houses are plenty desirable.
At the low end expect to pay about $75,000 for a more than comfortably broken-in dwelling. Keep in mind we are talking about the 2 bedroom submarket in this area. The resale value, or ARV, will be about $205,000 for a spread of $130,000. It's a fierce fight to pick up a deal in this neighborhood and the typical dilapidated property will sell in just 4 days. A remodeled house will spend about 20 days on the market.
Iroquois- Iroquois comes in at a sky high 208% margin between the top and bottom tranches. I used 1,000 to 1,250 sq.ft. houses with no basements. The average low end tranche property is $43,500 and the upper tranche is $134,000 for a spread of $90,500. The marketing time is about 26 days for a low end property and remodeled properties sell in about 29 days.
Newburg- This is a popular buy and hold area but the margin between the bottom and top of the market is an attractive 174%. I used the prevalent 3 bedroom 1 bath houses with no basements for my analysis. My average number for the low end price is $48,000 and the average remodeled house went for $131,000 for a spread of $83,000. Marketing times are about 105 days for the low end and just 15 days for a remodeled house.
Shelby Park- If you've been paying attention to our real estate market this is no surprise. I used 2 bedroom houses without basements in this market too, just like in Germantown. The spread between the top and bottom of the market is a whopping 219% and that tops my list. If you've looked at any of these low-end properties you know how worn out some are, but the upside potential is undeniably good. My low-end house average price was just $49,000 while the top end average was $157,000 for a $108,000 spread. The typical fixer spent 46 days on the market while the typical remodeled house was sold in 19 days.
These numbers reveal a lot but they don't paint the entire picture. I hope it helps you on your quest.