Better Investment Properties In Louisville

[Robert Bergeron]

Hello, I currently work with a few investors here in Louisville from California as their realtor. Is there a shortage on listings there or is it just the ROI here in Louisville?

[Michael Seeker]

Originally posted by @Robert Bergeron:

Hello, I currently work with a few investors here in Louisville from California as their realtor. Is there a shortage on listings there or is it just the ROI here in Louisville?

CA rental properties trade in low single digit CAP rates (down to 2-3% or lower in SF area). Louisville or any other midwest city will provide significantly better cash-on-cash returns than most areas on the coasts.

Generally speaking, people invest on the coasts more for appreciation and the middle of the country more for cashflow.  Your CA investors are likely targeting Louisville for the cashflow and/or to diversify from high-appreciation, high-risk investments in their local markets.