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Private Lending in Kentucky

Residential investment financing across Kentucky’s major metropolitan areas. Bridge, DSCR, fix & flip, new construction, and build-to-rent programs.

Investing in Kentucky

Kentucky combines favorable tax treatment (no income tax on retirement income), low acquisition costs ($180,000–$240,000), and strong rental demand in urban cores. Louisville dominates the market with $240,000 median and manufacturing-driven employment. Secondary markets like Lexington and Covington offer even lower entry points and higher cap rates.

The state's bourbon and horse country heritage plus outdoor recreation appeal attract relocating professionals and retirees. Landlord-friendly laws and property tax rates around 0.85% create efficient rental operations. For portfolio investors, Kentucky offers compelling risk-adjusted returns with limited headline appreciation.

Kentucky Markets We Serve

We lend across Kentucky’s major metropolitan areas. If your project is in or near one of these markets, we want to hear about it.

Louisville Lexington Covington Bowling Green Owensboro

Available in Kentucky

Every loan program we offer is available to qualified borrowers and properties in Kentucky.

Market Snapshot

Median Home Price
$240,000
Property Tax Rate
0.85%
Population Growth
0.4% annually
Annual Permits
~8,500 annually
Landlord Friendly
Yes
Top Yield Market
Lexington

What Works in Kentucky Right Now

Louisville Metro Acquisition-Rental Scaling

Acquire 5–8 single-family rentals in Louisville ($180K–$240K). Cap rates of 6–7% with stable tenants. DSCR refinance into long-term fixed financing. Limited appreciation but strong cash flow and tax benefits.

Lexington Value-Add Multi-Unit

Acquire 2–4 unit properties in Lexington ($110K–$160K cost basis). Light renovation. DSCR financing locks 7–9% yields. Limited appreciation, predictable income.

Covington Suburban Infill Fix & Flip

Target Covington (Cincinnati suburbs) for acquisition and value-add. Bridge financing, 5–7 month renovation. Resale to owner-occupants or convert to rental. Higher appreciation than pure Louisville hold.

Frequently Asked Questions

What's Kentucky's tax treatment of real estate investors?
Kentucky has no income tax on Social Security or retirement income, attracting retirees. Capital gains and ordinary business income are taxed at ordinary rates. No state property tax on secondary homes, but investment properties are taxed normally.
Are there landlord-friendly eviction laws?
Kentucky is landlord-friendly. Evictions require 14 days' notice for non-payment. Court proceedings typically conclude within 2–3 weeks. No just-cause requirement. Deposits and entry fees are governed by statute but permissive.
Does Kentucky allow unlimited rent increases?
Yes. Kentucky has no rent control. Landlords can set and raise rents freely, supporting predictable DSCR underwriting.
What rental income can I expect in Louisville?
Louisville single-family rentals typically rent for $900–$1,050/month on $180K–$240K properties. Cap rates of 6–7% are typical. Lexington and secondary markets support 7–9% cap rates on lower-cost-basis properties.

Also Lending In

Start Your Kentucky Investment

Our team has deep experience financing residential projects across Kentucky. Reach out to discuss your next deal.

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