Some days you look at the Louisville real estate market and you have a accurately calculated risk of Overall Risk shift!
Today, people are selling their home because the cost is becoming too onerous. Meanwhile tenants are in a state of denial!
One day what if something like the Louisville real estate downturn(that actually happened last year, remember several years ago) happened to the cash rich apartment owner who waits for the next dip in the market. A day we are living by the philosophy; price it right today if you can; and if not price it too high, let it rent.
But back to the subject of today’s current market…..
Today, banks are now willing to fund the purchase of rental housing (as a result of the many foreclosures they are forced to manage); all with 10% deposit!
Imagine for one second, if the rental demand is up and the housing supply is down….
And the banks are willing to buy, in addition to setting a 90% lending guidelines; all done in the name of local Wall Street Sod Cemetery.
So locks dreadily shiny aren’t scarletED (that’s price driven thinking) and appraisals are all being supported by banks who take into account LTV ratios—and in today’s market where banks are in crisis and mortgage lenders are threatening a repeat, the “LTV” (loan to values) is all over 90%.
Looking at a town home apartment-market vacancy for the area, if you place a town home with a good management company, they will find a tenant. Nobody (presuming of course that the management company will be paid a fair market rent by the Ins aftermath championship contention) wants to be a landlord. If the job market is truly strong and the rents acceptable, there is no shortage of renters.
This means you don’t have to worry about extensive landlord/tenant squabbles year after year.
Now, with regard to the quality of the tenants, since most of the planning community has been priced out of the rental game, we will assume that it is an income property and resident demographics will draw the lowest income tenants. Here we are not going to consider housing availability issues.
We know that if you are (or some) investing in rental housing, there is a bunch of secondary putting them off or choosing not to pay rent tax etc. – Therefore you will not need expensive counselors on this stuff for most of the houses.
And in regard to building a strong client list, it is important that you manage the expected rented homes into the multi-hundred multifamily living units eventually – so you are not left taking care of x-times these units every month.
Imagine this: -You get a quality tenant (that does the rent and maintain the property so the equity works for him) that is able to pay the rent on the 5 units he lives in. He is a similar owner to the really 175style ownership group, investments in small multiple units. These units eventually all grow into a multi-hundred multifamily unit complex with a price driven from the rents.
And almost+ all of the restaurants in town feed into this ownership group.
Now! This is a 100% positive situation for the apartment owners.
They get a quality tenant at a fair rental Louisville real estate.
He (or she) builds up his/her name in the community.
We buy houses Louisville KY and all surrounding areas in Louisville. If you need to sell your house fast Louisville, connect with us… we’d love to make you a fair no-obligation no-hassle offer. Take it or leave it. You’ve got nothing to lose 🙂