Thoughts on Covington, KY?

[Sean Robinson]

Hello! 

Currently looking into Covington, KY area for single family homes for my next investment. I have been doing a lot of research into the greater Kenton County area in general. I wanted to know if anyone has had any experience looking at potential investments in the area and have any general thoughts. I'm currently not located in this area so my knowledge is limited to what I can do online and from calling up local brokers. 

Thanks!

[Evan Haag]

Hey Sean, 

To Jay's point, there are definitely good and bad areas of Covington. I'm finding that in the desirable areas right now, a high majority (95%+) are homes that are either fixed up and selling at a premium, or priced to be owner occupied, and leave little to no margin for an investor.

There are several areas in Covington that are not as "hot" that deals can be made. However, that is for a reason. Personally, I own about 40 total apartment units across 5 properties in the Covington area, and this is what I've seen as of late.

Studio, 1bd: These are on the market and snatched up immediately be renter demand. When I have a vacancy, I get calls left and right about these. Example: I listed a studio on Facebook marketplace for $550, and had 100 messages within 24 hours.

2bd: I only own 2 of these, and these took a little longer to fill.

3bd to 4bd: I own 1 of these that I just purchased, so I don't have a great feel yet, but I can tell you my perception. Finding a person that is qualified for a $550 studio means its just one person. That's easy. Finding a couple or group that can afford a 3bd or 4bd, your tenant pool will obviously be reduced. That being said, again to Jay's point, there are a handful of properties, even on the MLS right now, that could be bought, fixed up about $10k or $15k, and still be a 1% or maybe even a 1.5% property. But without the fix up, you won't get a qualified tenant that wants it, and be left with many applicants that have 1.5x or 2x the income instead of the ideal 3x.

Just my thoughts, good luck and if you have any questions, shoot me a message!