All Forum Posts by: Celli Mowery

@James Wilcox thanks so much for the insight. It will be interesting to see how Kentucky's economic growth impacts these areas. The mega site in Richmond, as well as Mt Vernon, will really change the landscape in these areas as they did in E-town when the battery plant came in play. I'm excited to see growth :)

0 Votes

Lexington-Fayette, Kentucky

Quote from @Drew Sygit:

My apologies w/my earlier post (below), I was on my phone and not laptop so it wasn't tagging.
I will if I may add some additional thoughts...
1) The appraisals I've seen in these markets are no where near Zillow estimates. I have a flip on the market now that the appraisal is $60k over zestimate. Taxes are calculated at sale prices and I believe much of these areas have had little to no re evaluation in years (I've experienced this myself on properties with rehabs that I've added double the size).
2) County vs "in town". The need for building permits in the counties is limited to plumbing, HVAC, & electrical. Building permits don't pass onto the PVA for reevaluation so they have no reason to stop by to visit.
3) Cash flow: Some might want $300+ cash flow monthly while others may be ok with smaller numbers and take the appreciation and tax benefits. I do think the renters out there looking for $700-1000 properties are moving out into more remote areas. Properties at that rental point don't exist (I have 2 rental clients now that $1200 is the least I can find & its a dump). If your product is nice, I believe you'll attract the right kind of renter (factory worker, lineman, etc). One thing I will say there is a shortage of is properties that accept a pet (single pet, ie 1 dog)

You will see a lot of manufactured housing on this corridor, but there are some older homes needing updates since the parent or grandparent had just passed (just toured a great one that sold for $219k in a week (cash) that was massive but my buyer was afraid of the work & it was easy fix and flip)

As I mentioned below, I'm very curious to your style-what makes the right deal for you?

I looked at several properties on Zillow in Mt Vernon, not seeing anything attractive.

Also, only a single rental!

All the cheap properties are MAJOR fixer-uppers with no Rent Zestimates - probably because there are not enough rental data points.

This one is priced at $135k with only $1,152 Rent Zestimate. How well will it cashflow?
https://www.zillow.com/homedetails/75-Fish-St-Mount-Vernon-K...

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Lexington-Fayette, Kentucky

@Remington Lyman I don't disagree with you. The outlying areas of Kentucky aren't as sexy as Lexington & Louisville. But something big is coming. The properties I've had appraised in the last year have some significant jumps. I had one in October(23) to April(24) jump 40k (same appraiser) and it wasn't even a completed new construction. I've seen too much economic development & new construction down this corridor in the last 12 months. Starbucks has just opened off exit 77 in Berea, London is trying to capture a second Starbucks, and 2 new restaurant chains are in the works at the exits in London....something is coming, and it's not the somewhat new Buc-ees :)

Quote from :

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.

I believe it's due to the limited number of agents and investors from that location on this site.

0 Votes

Lexington-Fayette, Kentucky

Hi Drew

i met with a woman today looking for a rental
She is considering a $2000 mo lease from a friend for a comparable size home to this in north London

I have another tenant who isn’t ready to settle down also looking for a rental. This is a little big for him but he’s looking at $1200
2 bedrooms but could easily transition to Mt Vernon (disabled vet no pets)

Curious how you measure cash flow? What makes a deal attractive to you? For everyone it’s different which is why I ask. Is your order cash flow first, appreciation second? How do you judge what deal works best for you? Quote from @Drew Sygit:

@Celli Mowery looked at several properties on Zillow in Mt Vernon, not seeing anything attractive.

Also, only a single rental!

All the cheap properties are MAJOR fixer-uppers with no Rent Zestimates - probably because there are not enough rental data points.

This one is priced at $135k with only $1,152 Rent Zestimate. How well will it cashflow?
https://www.zillow.com/homedetails/75-Fish-St-Mount-Vernon-K...

0 Votes

Lexington-Fayette, Kentucky

Hi James

interesting message -I know I’ve seen your name often on the Bluegrass Investors Group

I have spent the last 5 years investing in London and while some of the concerns you mentioned did exist when we started I’m finding we haven’t had issues with tradesmen coming from Lexington & Richmond for us in recent years. We also have some great crews locally that have done well for us.

I’ve found interest blowing up for rentals in the market and the lower rents we once saw have risen significantly in the last 3 years. Berea is extremely difficult for renters to find low price points and they’ve pushed themselves deeper into Eastern KY while Lexington commuters come into southern Madison county and beyond as they did into Jessamine county. I see a lot of new construction in Richmond and Berea as I travel from Lex nearly every day
im excited to see how the mega site in Mt Vernon and Richmond grow these areas

What surrounding areas of Lexington are you seeing more activity?

Quote from @James Wilcox:

Quote from @Celli Mowery:

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.

1 Vote

Lexington-Fayette, Kentucky

I've been a member of BP for years! Finally getting my profile up and running after investing in RE since 2016 and leaving my W2 in 2024.

Investor

Short Term Rental Host

Mid Term Rental Host

Real Estate Agent

Fix & Flips

New Construction

The majority of my focus is south of Lexington in anticipation of a large mega site coming to the area. (https://dataispower.org/rockcastle-mega-site/)

As an investor and owner myself, I understand the math needed to make a solid investment for your portfolio.

If you have interest in these markets, lets connect!

0 Votes

Lexington-Fayette, Kentucky

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

3 Votes

Lexington-Fayette, Kentucky

All Forum Posts by: Celli Mowery

Celli Mowery has started 2 posts and replied 17 times.

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