Shelby Park

16 Replies

Any Louisville investors investing in Shelby Park?  It's an area I'm starting to research and just wondering if anyone has experience investing there?  If so, what type of properties are you investing in and are you doing buy and hold, flip and hold, flips?  What kinds of tenants are you able to attract?  Any particular streets/areas you like or areas you try to avoid?

Anecdotally, it seems like an area that is at the beginning of an upward trend and with its location close to the "city center", walkability/bikability, Olmsted park, historic character, and lots of new businesses popping up.  It's close to Germantown, but the properties are a lot cheaper than Germantown right now and it hasn't experienced the investment that Germantown has yet.  Seems like it may be a good opportunity right now with purchase prices that result in a base case with good cash flow where the numbers work even if the area never enjoys significant appreciation, along with potential for upside with above-inflation appreciation.

I know Brent K. Invests there.  The Sojourn Church does also. Personally, I would not buy there. 

If you look at Zillow or city-data.com you will see he area as a whole does not match appreciation for the city average. Also, the rent to owner ratio is not favorable for owner occupants. The violent crime rate is terrible.

If your price point is for properties in the 30k- 80k range outside the west end, you could do better.

@Justin H. - Hey there, long time no see!  

@Pavel Reyes Valdes has got my number.  My office is on Shelby Street and I just closed on a 3/2 on Shelby Pkwy, did a light cleanup and rented it for $1,050 a month.  I believe that will be a $1,200+ rental in two or three years and price appreciation has already begun.   I'm meeting with an owner this weekend to negotiate for another one as well, that's how much I believe in the area.

With that said, it's a street-by-street thing but I think this area is going to turn.  It's definitely a path-of-progress type bet though when I buy these places.  They cash flow fine though, so no worries about waiting it out. 

The area I think will fully turn first is quite small... just a few streets.  Some of these streets may be years away.  Let's get together one Saturday and I'll give you a nickel tour of the area and give you my thinking on it if you like.

Best,
 - C

Thanks for the offer @Chuck B.  I suspected there would be some specific streets/areas to focus on.  I'll definitely reach out to buy you lunch and walk or bike the neighborhood on a Fall Saturday sometime soon.  

I have interesting experience with this neighborhood as a friend actually lived there for a while right after we had both gotten out of high school. It is definitely a gateway to the west and the further west you go the worse it gets.

At the same time the specific area wasn't that bad, most people were friendly and I always felt safe day or night. I really wouldn't be surprised if the area turned around as especially younger people like to live in more urban areas.

Jordan Moorhead, Real Estate Agent in MN (#40542303)

@Chuck B. I have looked at a few deals in this area but I always feel that it is still just a little rough for my liking. That said I don't know the area very well so I wouldn't know the "good" areas. I too would like to get together and learn from your knowledge of the area. Maybe we can all get together and just BS about Louisville as a whole and get to know the Shelby Park area a little better. It would also a be a good time to meet a few other BP members. 

@Justin H. Sorry I cant add any value here but I am sure Chuck would be happy to educate us. 

@Chuck B. Actually I got a lead on a couple wholesale properties yesterday in the area. One on Logan and one on Shelby. I think the ask was $60k for both and I kinda of brushed it off as I said I just never really knew or liked the area. Your thoughts on those streets? 

Great discussion guys. I'd love to do the tour with ya'll.   I'm not personally invested there (yet), but have several friends that are owner/occupants on E. Oak Street and I'm in the area a lot.  I certainly wouldn't walk around the park at night by myself, but even as a single gal I've never been super afraid down there--just very "aware" of my surroundings.  I think it would be important to consider the property's immediate neighbors.  Immanuel Baptist Church (corner of Oak & Clay) has arranged a purchase/trade with Lampton Baptist Church.  I believe the plan is that Lampton will move in when Immanuel moves out.  I'm curious how that might effect the feel of the neighborhood as well.

@Jason James - Were those Marina's deals?  I saw she had two in the area.

Oak Street and Shelby between Oak and the train tracks has a lot going on (including our offices, ha!) and is undoubtedly the most promising area in this neighborhood right now.  Access Ventures, The Park and Sojourn are right here as well.  Directly south across those train tracks is the new Underhill development and just east of this area will be the new winter/Boyd Moving development.  

Camp and Ormsby are arm pits, those are going to be the hardest to turn.  There's an outstanding, newer (15 yrs old?) house at Camp and Clay, 3/1 or 3/2 I think, it's one of Michael Mawood's listings. The ask right now is 50 and it needs 10K to be excellent.  I'd buy it except it's right across the street from that bar and there's way, WAY too much sketchy traffic hanging out there at night and weekends.  I wouldn't be able to keep tenants in it nor would I want to deal with all of that.  If that bar would go away I'd be all over that house though.  

The houses west of the park are going to be an up hill climb too.  With that said, there are folks buying ALL around here and a lot of the bad tenants are being pushed out by owner occupants and people like myself that will only place good tenants.  

Would love to catch up if you'd like to have a coffee, yap, etc.  Saturday's are best for me, maybe late morning coffee and then we'll car pool it around the 'hood?

Best,
 - Chuck

Intersting link. I'm wholesaling two houses, package deal in Shelby Park. One on Logan and one on Shelby.

Jason James I think you're talking about my houses lol

I'm so upset!! I just called Jason. Those are my houses that someone was trying to make $ on. They're not 60k! I'm pissed. I know who it is just need to confirm with Jason.

@Marina Sud , @Chuck B.

@Jason James

@Kelly Bankes

I just wanted to say hello to everyone in this forum. I'm guessing/hoping our paths cross, maybe at a KRIEA meeting. My wife and I are new to the area and we've been looking to invest in a multi-family in Old Louisville (Made an offer for place on Oak Street, but we couldn't agree to terms). Seems like there are quite a few knowledgable people here, so I wanted to introduce myself. Any advice you have would be appreciated.

Thanks,

Felix

@Chuck B. Thanks for the info. I'd love to hook up and chat. We will most def make one Saturday happen. 

@Marina Sud Sorry to upset you. Glad you reached out to me. Hopefully you get the issue resolved. 

@Marina Sud I got a call on those properties this week.  I asked the guy if he had under contract and said he was working with a woman on those.  Let me know if you need more details.

Theron

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