Lexington, KY - Multi-family Market

[David Acosta]

Hi All,

I was hoping to get some feedback on the Lexington, KY market, specifically from a multi-family perspective.  I would love to hear how local and out of state investors are fairing.  I was pleasantly surprised to learn about the solid growth and economic drivers (Xerox, UPS, IBM, Toyota, and of course UK) in the area.  What submarkets are my fellow investors targeting and avoiding?  Any property management recommendations?  I look forward to connecting.  Any information or feedback is greatly appreciated!

- David

[James Wilcox]

@David Acosta The Lexington market is solid and has been like that for many years. While other parts of the country saw bigger impacts from the SPMC, Lexington has weathered that storm and come out much stronger. Prices of property are on the rise and inventory is currently very low. Finding a good deal here will take time and persistence because of low inventory, high competition, and savvy investors. On average properties should be around a 1% rule. The job market is strong and many people are moving to the area as a result. Some appreciation should be expected in the B-A neighborhoods but, as always, should not be something that you count on to bail you out.

I do not invest in Lexington currently due to the higher prices. Likewise, I can not comment directly on where I do have property in the city. Your buying criteria will define what type of property and where in the city you would buy though.

There are many competent property management companies in Lexington. I have personally have not worked with any but Kentucky Life Property Management (SFR & duplex), Reliant Property Management, Classic Real Estate, and Cypress Property Group are some that come to mind. The only one that I do not suggest is Positive Property Mangement.