We’re currently evaluating a 30‑unit townhome portfolio in Western Kentucky, and I wanted to share a few observations for anyone investing in small‑market workforce housing.

A few things that stood out during underwriting:

• Stabilized assets with legacy tenants behave very differently from typical value‑add plays.

• Separately metered utilities create a clearer long‑term runway for NOI growth.

• Heavy CapEx completed by prior ownership can shift assumptions more than expected.

• Rent‑reset potential is highly dependent on turnover velocity in these sub‑markets.

For those investing in similar markets, I’m curious how you approach:

• Underwriting stabilized assets with value‑add potential

• Managing legacy tenants in small‑town environments

• Stress‑testing rent growth assumptions in workforce housing

Always interested in hearing how other operators think about these dynamics in Kentucky or comparable markets.