Who has interest in Kentucky?

Lexington-Fayette, Kentucky

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Who has interest in Kentucky?

Investor · Lexington, KY · Member since 2021 · 17 posts · 12 votes

As a BP binge listener, investor and agent, I'm curious why smaller areas of Kentucky are not receiving focus with their low land costs, & lower entry points? Ohio & Michigan were recently highlighted in the rust belt as good values that cash flow. Kentucky should have been expanded into their calculations. Too many people are sleeping on this.

Kentucky Economic Development has many site ready properties in smaller areas that are ripe for rentals. Most notably, Mt Vernon, Berea, London & Corbin all along the I-75 corridor. The Rockcastle Megasite is an example of a site ready property & is only 20 minutes north of London. https://dataispower.org/rockcastle-mega-site/. The site is just south of Lexington, another market desperately in need of rentals but higher points of entry.

A rent heavy market, with a shortage, I am receiving regular requests for rentals in these markets.

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James WilcoxBusiness Member

Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 602 votes

1y

Quote from @Celli Mowery:

As a BP binge listener, investor and agent, I'm curious why smaller areas of Kentucky are not receiving focus with their low land costs, & lower entry points? Ohio & Michigan were recently highlighted in the rust belt as good values that cash flow. Kentucky should have been expanded into their calculations. Too many people are sleeping on this.

Kentucky Economic Development has many site ready properties in smaller areas that are ripe for rentals. Most notably, Mt Vernon, Berea, London & Corbin all along the I-75 corridor. The Rockcastle Megasite is an example of a site ready property & is only 20 minutes north of London. https://dataispower.org/rockcastle-mega-site/. The site is just south of Lexington, another market desperately in need of rentals but higher points of entry.

A rent heavy market, with a shortage, I am receiving regular requests for rentals in these markets.

While smaller towns in Kentucky often have lower price points, which means less capital is required, there are limitations to the profitability of these markets. The price-to-rent ratios are generally unfavorable, and a shortage of skilled tradespeople and reliable property management can hinder the success of buy-and-hold rental investments. For instance, Berea is a charming college town, but the combination of local taxes and less favorable price-to-rent ratios makes it less appealing for investment compared to other areas in the state.

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Brian Babbs
Member since 2020 · 1 post · 0 votes
1y
Small town rentals. There is not the appreciation of the larger cities, acquisition costs are much lower, not difficult to find carpenters to do work, cash flow is over 1%, minimum regulations, and good tenants are available. Real world example 1700 sq ft modular older but very well kept. $56000 $930 rent. In small town, rural county of 14000. Don’t overlook small rural communities. Not sexy as Lexington but bank account is the ultimate measure of success
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James Janson Turner
Member since 2024 · 1 post · 2 votes
1y
I'm focusing on short term rentals around Lake Cumberland and manufactured home parks here in Kentucky.
The need for affordable housing and shortage of housing supply has made for a very lucrative investing opportunity.
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Austin WolffPro Member
Rental Property Investor · Los Angeles, CA · Member since 2024 · 139 posts · 134 votes
1y
Market Analyst here. I constantly see Lexington and Bowling Green on my "lists for out-of-state investors." Now, these "metros" are also competing against every other metro in the USA and there are quite a few metros with better overall fundamentals with similar price points (which is why I haven't written about these KY metros yet). But still, Lexington and Bowling Green continue to pop up on my lists time and time again. Perhaps it's time to do a Kentucky deep-dive...
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- Celli Mowery
  OP
  Investor · Lexington, KY · Member since 2021 · 17 posts · 12 votes
  1y
  
  Quote from @Austin Wolff:
  
  Market Analyst here. I constantly see Lexington and Bowling Green on my "lists for out-of-state investors." Now, these "metros" are also competing against every other metro in the USA and there are quite a few metros with better overall fundamentals with similar price points (which is why I haven't written about these KY metros yet). But still, Lexington and Bowling Green continue to pop up on my lists time and time again. Perhaps it's time to do a Kentucky deep-dive...
  Austin,
  I hope you do! Kentucky Economic Development is announcing new projects every day in our state and is focused on manufacturing growth. I recently met with leaders in London to learn more about growth in the area to support the Berea Business Park as well as the Rockcastle Mega Site. We are seeing a migration pattern from Florida & California on a regular basis amongst other states
  Once you look into the investment by Toyota and some of its suppliers as you move south down the I-75 corridor I believe you’ll see on your own what is up and coming in Kentucky!
  1 Reply
- Austin WolffPro Member
  Rental Property Investor · Los Angeles, CA · Member since 2024 · 139 posts · 134 votes
  1y
  Quote from @Celli Mowery:
  
  Quote from @Austin Wolff:
  
  Market Analyst here. I constantly see Lexington and Bowling Green on my "lists for out-of-state investors." Now, these "metros" are also competing against every other metro in the USA and there are quite a few metros with better overall fundamentals with similar price points (which is why I haven't written about these KY metros yet). But still, Lexington and Bowling Green continue to pop up on my lists time and time again. Perhaps it's time to do a Kentucky deep-dive...
  Austin,
  I hope you do! Kentucky Economic Development is announcing new projects every day in our state and is focused on manufacturing growth. I recently met with leaders in London to learn more about growth in the area to support the Berea Business Park as well as the Rockcastle Mega Site. We are seeing a migration pattern from Florida & California on a regular basis amongst other states
  Once you look into the investment by Toyota and some of its suppliers as you move south down the I-75 corridor I believe you’ll see on your own what is up and coming in Kentucky!
  
  That's awesome, I didn't know about the manufacturing growth! KY remains an affordable state (for now) and it's great to see the state focused on growth.
  1 Reply

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