Owner needs cash for some improvements, but if he refis interest rate is 11%.  

At my point in life everything I own is both a cash flow superstar and appreciating nicely, because I'm invested in growing, popular areas.If I was just starting off now, I'd probably be aiming for value-add in good areas where I could either live there while improving the unit(s) - ie a duplex, triplex - or where I could trade sweat equity for profit, or both.

Tapping into that equity through a HELOC or cash-out refinance and reinvesting in higher-performing assets could improve their ROI significantly.

Also, think about the bigger market factors—how’s the job market and population growth in Lexington?

That will buy you some time to get more capital together, and you know that money will be used to perform the job.

I hold a w-2 job currently and considering transitioning to holding some properties.

You are working a demanding corporate job but also want to build rentals on the side.

@Jonathan Small Nice job on this find and completion.

I have a W-2 Job, capital saved up for a down payment (or two), and a buy box based on my affordability.

Anyways, good job on being where you are, you are in an enviable position.