First Timer Needs Guidance - Lexington, KY

[Caelan Lebryk]

Hello, I’m a soon to be real estate investors based out of Lexington, KY. My market is HOT right now - average days on market is 14 days.

Currently I viewed a single family home in an up and coming area (distillery district for any of my lexingtonians). The house it self has 3 bedrooms, 2 full baths. As I am still young, I would be house hacking (5% down conventional 30 year) this property with a couple roommates for a year and then renting it out after we leave. The numbers work GREAT with all expenses, 15% for repairs, etc. cash flow is looking like $400-500 a month. HOWEVER, the only thing holding me up on this property is the neighborhood. Like I said, it’s an up and coming area with lots of cool bars and restaurants being put in and is industrial. The neighborhood is C to C-. The two homes across from the one I’m looking at have been flipped and look amazing while pretty much every other home around it hasnt been touched and looks rough.

When searching for properties in suspect areas what are some tips or experiences you all have had?
thanks for any response!

[Reed Meyer]

Hey Caelan. If you're looking to house hack just ask, "will I be comfortable here?" I wouldn't recommend buying in an area where you feel like you'd be scared to walk around at night. However, if you feel that there are some cool bars around and things to do then it sounds like it is probably in the path of progress. A lot of times on house hacks the best way to do to it is to buy just outside of the desirable areas. This is how you'll find numbers that work best for Self-sufficiency and living for free/lowering your rent as well as increase your upside in the future and expedite your time to a refinance out of the low-money-down loan with PMI.