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Daniel David is a Roofstock Certified Agent, real estate coach, and fellow investor in Lexington, Kentucky.

 

In this episode, we get Daniel's scoop on the Lexington real estate market - the local economy, price points, level of competition, common issues that come up on inspection reports, and what makes it a great market for investing. 

 

Explore investment opportunities in Lexington on Roofstock today. 

 

Contacts and links mentioned in the episode:

Daniel David - 859-797-4007 daniel@makekyhome.com, www.makekyhome.com

www.LocateInLexington.com 

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Transcript

 

Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only and is not intended as investment advice. The views, opinions, and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.

 

Mark:

Hey, everybody, this is Mark Woodling with Roofstock. Thanks for joining The Remote Real Estate Investor podcast. Today we have Daniel David, who's in Lexington, Kentucky. He's one of our certified agents. And he's gonna give us some insights about what's happening in the market. So let's go ahead and get Daniel on.

 

Welcome Daniel to the remote real estate investor.

 

Daniel:

Hey, Mark, thanks for having me on. It's a pleasure to be here.

 

Mark:

Awesome. So are you in Lexington today?

 

Daniel:

I am, you know, in the Lexington Kentucky area actually born in this area grew up here, graduating high school from here. But then I ended up joining the army back and 98. So shout out to any army vets that are you know, listening to the podcast.

 

So spent three years in Heidelberg, Germany loved it, I if I could go back there, I would go back there. Immediately, I came back started started being a wedding DJ, believe it or not. So I'm used to talking on the mic used to talking in front of crowds and you know, engaging and making things a lot of fun. So hopefully, we'll be able to make some, some fun stuff here today. And then you know, of course, you know, doing weddings is not just a one day event. There's the planning sessions, you have the rehearsal, you've got the wedding, and then you've got to find time to go promote your business.

 

Well, during this time, you know, my son happened to be in kindergarten. And he's like, Dad, can you come spend some time with me, you know, pick me up from school today. And I was like, I can’t I have a meeting? And then he's like, well, that's okay. You can pick me up on Friday. I was like, No, I gotta go to rehearsal. And then Sunday, you know, was the bottle showed or promote, to generate more business? And he was like, you know, dad, when are you going to stay home and spend some time with me. And I was like, that was the dagger that if I could have quit that day, I knew I would have.

 

So I knew some things needed to change. And that's what got me involved in real estate. So I ended up going with a large national brand, my first run out the gate with KW, Keller Williams, and my second month in the business, I actually listed 26 homes. A lot of people thought that, you know, look, you don't know what you're talking about, you don't know what you're doing. And then once I listed those 26 homes, those same people were like, okay, so maybe you do know what you're doing just a little bit. So end up getting into coaching, training, mentoring, and then have the opportunity to join the EXP where I coach training mentor, you know, we've got about 1000, our group across 38 states, four provinces in Canada, Mexico, and Portugal and Puerto Rico as well.

 

And so we've got tools, models and systems and things like that. But I've always been a real estate investor. I'm an investor agent. So I love talking to numbers. And you know, talking about cap rates, and all that good stuff that most people just don't.

 

Mark:

That's awesome. I've heard a lot of really good things with EXP Realty, these days where they're bringing on more investors centric agents that really know how to talk numbers versus, you know, selling somebody owner occupied homes. So that's great that you've made your way over there. And I also hear you're a real estate coach. So maybe give us a little background on how you've been coaching, whether it's buyers? Or is it families, like tell us about you know, that experience?

 

Daniel:

Well, you know, it kind of covers a vast range. So if you're working with buyers, there's certain things that you're looking for that, you know, can save time of, you know, if you're looking at, it doesn't matter whether you're buying real estate to invest, or you're buying for your personal reasons, one of the best things you can do if you're not paying cash, make sure you have your financing in order first. This is going to save you so much time on the back end and also on the front end. Because when you are pre approved and you've got all your ducks in a row, it's just like you've got cash on hand. So when we find something we can move rather quickly.

 

When you're looking to invest in real estate. You know, one of the best person investments that I can give advice is buy a duplex, especially if you know you're just starting now live You know, maybe you just graduated high school you're got, you know, roommates and things like that. It's amazing how much profit you can make. If you can buy a duplex, live in one side, and then run out the other, basically, when you're renting out the other, they're making your mortgage payment, then, you know, once you finish school, move out, take advantage of this IRS rule that the government has is the three five rule. So if it's been your primary residence for three of the last five years, you can actually claim that still like your personal residence, and not pay capital gains tax on that. So at the end of year three, look to sell that thing off, cash out, and now you've got a big nice cash portfolio to start going into future investments.

 

Mark:

Well, that's what's so interesting about today with you know, all the pandemic is that people are moving in are much more mobile. So they may be moving from California and in trying to find a market like Lexington, Kentucky, and in finding that the price point is just so affordable, where they can pick up these properties for, you know, nothing compared to what they're paying back home. So yeah, house hacking. That's, that's what they call that little strategy. But well, I would love to hear more about the coaching as we go through. Cuz, you know, the reason why I ask is do you coach more individuals or families to me that you end up as a life coach, because you know, there's two parties to any decision, you're gonna have to play mediator here and there. So, you know, we'd love to, Who is your typical client type, so maybe give us a little background there.

 

Daniel:

You know, I love working with investors, it's your typical agent does not understand how to work with investors. You know, they're more concerned about, you know, hey, look at the nice decor in the house. All Did you see that this has a garage, and investors like, okay, so tell me the cap rate? Does, what's the cash flow on this? What's the numbers look like? And so, you know, if the numbers make sense, then we can look at the house. And, you know, if it has nice aesthetics, that's a plus.

 

But, you know, let's look at the numbers and look at the meat and potatoes, let's dive into. And so, you know, back in 2015, I actually started a real estate investors group on and we can find it on meetup.com. And no, that is not a hookup site, just so you know. So we've got currently over 500 members, 556 Last time I checked. And, you know, we talk about how to buy, sell, invest, and even, you know, the fix and flips, you know, Lexington is a perfect market, if you're looking to buy and hold not so much on the fix and flips because everybody's looking to fix and flip. And those are few and far between. and it's like sharks circling. And they just all pounce, and they end up driving up the profit to where there's no like, meat on the bone at the end of the day.

 

So I, you know, buy and hold is like the best strategy that I found that works really well because Lexan has some great numbers for rents compared to prices. And you know, you mentioned like, back home or outwest, where you know, 300,000 won't even buy at the front door, you know, here in Kentucky 300,000 will get you a pretty nice place with with a good cash return on investment.

 

Mark:

Now, that's that's great Intel and exactly what we want to dig deeper into. So let's go into Lexington. And let's actually give people a little tour that may not be so familiar with it. So what I know is that it's the second most populated city in Kentucky. I think that's always a big thing that most people don't recognize. It's the horse capital of the world. So I think that that's a pretty big deal. Maybe known for a little bourbon and some other activities, you know that around fine tastings and, you know, good things like that. And then of course, University of Kentucky, Wildcats, though, maybe why don't you give us a little tour of the city and go through anything that people may know or may not know and, you know, give us your perspective on it.

 

Daniel:

Okay, so Lexington is, believe it or not one of you know, it's growing we're, we'd like to be a little conservative on growth as compared to some of the other cities. It's, it's definitely like an old money town. So you've got horse racing for those horse enthusiasts. You mentioned the bourbon. Some of the best bourbon in the world is produced right here in our backyard. So we've got a whole bourbon distillery trail the trail you know, if you're ever in Kentucky, I recommend you go check out the bourbon trail. We do have the University of Kentucky and that is what kind of anchors Lexington and then that's also followed by the medical industry we have some of the top medical physicians and things like that in in the world are right here in Kentucky. And that's that's not a well known fact, you know, one of the cardiology departments and things like that we, we strive for success there.

 

We've also got, you know, for those that like, some companies that you may have heard of, we've got Amazon, we've got Lexmark is anchored right here. And then if you've ever eaten, Zoe's, Zoe's was founded right here in Lexington, Kentucky. So awesome, great companies with opportunities and growth for, you know, future investments and things like that.

 

Mark:

So what I've been reading about, is that just the low overall cost of doing business out there. So it's very attractive, I think it's a competitive tax environment for companies to move to. So what are some of the companies you'd say that are making a splash right now? Are there any technology companies or companies that are maybe building the next great facility that they're looking to move to out in the Lexington area?

 

Daniel:

There's plenty of opportunity for those companies that want to take advantage of those industries, Metro nets, kind of installed their fiber optic network throughout the area. So now we did a true gigabit up and down, that opened up a time of opportunity. And we've had some companies that are taking advantage of those opportunities. And then other companies that are kind of like, Well, you know, I'm not sure about this whole fiber optics thing.

 

So there's great opportunity to hop in on the technology side. Lexmark a, you know, they are pretty some of the best printers in the world. They are, you know, anchor here, so they're taking advantage of some of those opportunities. And then, you know, you've got a lot of law firms here in Kentucky, you also have a lot of medical opportunities. So if you're in the legal or medical industry, Kentucky's, especially in Lexington, Kentucky is a great spot, we are considered a retirement town. It's a so if you're looking to retire. And I think money magazine has had us and consistently in the top 20 since like 2005, which is just insane.

 

So we have some great nightlife, and then, you know, some, some great little off the beat restaurants. So we want to get away from those chain restaurants. We have some great local eateries here that would, you know, rival some of the great cuisines are probably used to experiencing.

 

Mark:

That's awesome. Well, let's I want to dive a little bit further into the quality of life in a second, but you touched on it for a second they gigabit city. That's a big deal. Or gigabyte, oh, no, which when you pronounce it, but that's a big deal. There's only a handful of cities around the country that have the entire city infrastructure set up to have a gigabyte download speeds. So yeah, so MetroNet, is the name of the company and are is their headquarters in the area as well? Or is that just their presence?

 

Daniel:

They have some some of the companies and then because they've already set up that infrastructure here in Lexington, they're expanding to the surrounding cities and bringing that in as well. So that is a huge benefit, especially if you're looking to invest because I know, tenants are looking for, like the high speed internet to be able to stream and do things like that. So it used to be that we just had spectrum cable. And that was it. That was like the fastest internet that you could find, which you know, drove prices up. And, uh, you know, now that MetroNet has come in, it's been a game changer. And so a lot of those companies that had that, you know, kind of Monopoly have had to really rethink what they're doing because so many customers now have choices. Now, you know, it used to be that everybody had a landline phone, and everyone has a cell phone, so there's no need for a landline phone anymore. So your older population, they're still used to having that landline, your younger population. It's like nope, I'm completely mobile. I don't want to be tied to one spot which makes you know investing in elections and a great opportunity.

 

Mark:

Sure, into between all the colleges around town you have this you know, gigabyte city or gigabit. And what I've been reading about is the the millennial population that's really attracted to the area A. I think it's because it's post college, but also if you have the technology and you have This future thought on how to keep some of the the youth their income the restaurants, because these are the people with the disposable income. So what do you see in terms of like the city makeup, I heard a little bit about being a great place with for retirees, but when you see, are dealing with even local buyers, who is the buyer that you're working more closely with, or who's the renter, that you may be working with looking to rent a property?

 

Daniel:

Well, usually when you first come out of college, you've got that massive student loan debt. And so mortgage companies take that into consideration. Now, they are policed here locally, if you're in a certain field, they will forgive your student loans and not count that into your loan, which is a great benefit. For buyers, and I, you know, sellers have that opportunity as well, for your renters that, you know, whatever up whatever reason, you can't get qualified.

 

Lexington does have, you know, some pretty competitive rent rates, you know, you can look anywhere from like, for a two bedroom, one and a half bath, probably looking at, you know, around that 1000 to 1200 range, where if you get on the outskirts, that's probably closer to like 900-1000.

 

Mark:

Wow.

 

Daniel:

And you're still close enough to where you can commute, when I think commute, I think anything 15 minutes or less, is you know, you're right there.

 

Mark:

That's incredible. So you have this younger, younger set of, you know, let's call it the millennial generation. And next thing, you know, we have Gen Z coming around the corner. You know, what I've been reading as well is that, you know, this is one of the most highly educated, you know, post graduate groups in the in the entire country. So I saw that 42.9% of the population 25 years or older has at least a bachelor's degree. And 18.6% has a graduate or professional degree, which is the 11th highest. Let's see ranking Lexington, the 11th most highly educated city in the country. That's incredible. Wow. So the colleges are keeping the the renters around or whomever you may be buying as well. But they're staying around so they don't just graduate and then take off for the big city. It sounds like they're they're sticking around and spending their disposable income there.

 

Mark:

Yeah, it's, and a lot of that ties back to birth friendly city. No, we were not like all up in your business. But when you talk to us, we're cordial. We're, you know, we're genuinely interested when you're trying to carry on a conversation with us, we're not trying to, like turn up our nose and say, See, everyone's helpful, and very supportive. And I think that drives a lot into why you're seeing a lot of retention when students graduate from UK.

 

So we also have Transylvania University, which, you know, is not on the same level as UK, as far as like, student wise population. But academically, they, you know, like you said, they rival pretty much anyone in the nation. So we have a lot of educated people that choose to remain here just for the sake of, there's opportunity. And we're growing, we're still, you know, expanding. We're in Lexington has not reached its full potential yet. And so there's plenty of opportunity for growth. And that's what makes it attractive to a lot of people.

 

Mark:

Well, that's great. Well, we'll put some show notes and links into the podcast. But there's locateinlexington.com, that's where I got a lot of my information. It's the economic development group out of out of Lexington, or typically, it's the, you know, the Chamber of Commerce, that puts out a lot of great content. So I highly advise anybody to go check that out and study some more of those statistics.

 

But let's get into the actual like, let's get into the micro economics of this and start talking about what little pockets of Lexington that you're really focused on. So as a kind of a preface, you know, Daniel is the one that is a part of a certified agent network at Roofstock. So he's actually underwriting a lot of the properties from the MLS and then posting them to Roofstock. So he comes up in estimates if it's vacant, or rent a random out as well as potential rehab.

 

So maybe Daniel, give us a little idea about when you're going through and looking at properties. What are you looking for that you would consider as a good investment property and maybe walk us through some of the pockets around Lexington and talk about whether it's schools that are the driver or areas that are more a cap rate for Guess you know where you can get the better return on your investment. So give us a little Intel there.

 

Daniel:

Well, so let's talk about the sweet spots, because I love, love talking about sweet spots. So in Lexington, one of the hottest areas is the Kenwick subdivision area that's 40502 on the zip code, anything that you can pick up there that is increasing in value. So just to give you an idea, like what we saw last year, compared to this year, numbers were up about 20%, just in that area alone, which is just crazy.

 

So Lexington as a whole, we had about 1.9 months of inventory the last year that has, unfortunately decreased it's like 1.3 months of inventory right now, which, you know, not saying you can't find deals, because a lot of investors think oh, well, you can't find deals on the multiple listing service. Well, that's where I get a lot of my deals. If you know what you're looking for, you know what you're doing, you can find cap rates as high as like nine, nine plus percent on properties that are on the Multiple Listing, I find those all the time and upload those for you on Roofstock.

 

So, you know, what I've been experiencing? Since I have joined Rootstock, I'm actually you know, we're, we're writing about an offer per day. Right. So it's, it's just crazy. And there's a reason that a lot of investors were targeting. And it goes back to all of the things that we have discussed throughout the podcast.

 

Mark:

That's great. So maybe walk us through a few other areas, or how do you kind of divide the lines is it highways that are dividing is it you know, other areas that kind of separate where some of the better schools are give us an idea about how you would kind of generally categorize that.

 

Daniel:

We do have some schools that you know, outperform others, you know, as a real estate agent, I am kind of bound by this no discrepancy rule, kind of things. But Lexington if you think about it, Lexington as itself as if you think of a wagon wheel, and then each spoke points to the center. So the center is downtown, we have this road called New Circle Road or Circle 4 it makes up the outliers of Lexington, and then each exit points as a spoken and all focuses towards downtown. And then we have now started to take that wagon wheel. And now we're putting another wheel around that where we're getting into some of the other areas that have direct access to like, I64, I75. And we've noticed some rapid growth in those areas as well, that's out in the Hamburg area.

 

Also, we just build a new high school, Frederick Douglas high school that has drawn a lot of investors into that area. And then you know, because we have UK, there are some opportunities to invest in the UK student area where you will constantly have an influx of students, you'll never run out of opportunities there. Most of those are more than four units, though. So if you're interested in that field with me, I'm sure we'll go over my contact information later on. And we can discuss those opportunities.

 

Mark:

That's great. That's great. So, you know, when you're underwriting these properties in general, you know, is there a certain cap rate that you're really looking for? Because I know, like you said, the price points, you know, can be a bit higher in some of the areas but it sounds like your taxes also are not nearly as high as what you'd experience in areas like Texas where I am. So what is the price point and expectations that buyers should expect? You know, in terms of maybe like something between 100 and $150,000, you know, what should a cap rate look like and then 150 to 200, and so forth.

 

Daniel:

Most of the tax rate and Fayette County is 1.278%. So, you take that into consideration, which puts you know, if you're buying a property at like 100,000, you, you're right at about 200 a month or something like that, which points to 2400 a year. Or if you go lower, then of course that varies your cap rates. And my sweet spot is you know if I can find anything 9 plus I'm golden, but if I can get it between that seven and 9% I know most investors will no bite on that

 

Mark:

Fantastic. Wow. Yeah, those are numbers that you You really don't see in some of the the major we would call like tier one cities. But as you get into these secondary markets where you have less competition, and there is a little bit more available inventory, it doesn't sound like there's much so you need to add quickly. But, you know, there's some markets where I mean, properties aren't aren't on MLS for more than four to six hours, and then they're snapped up. So it sounds like you have a little bit of breathing room, but not a whole lot of time to react.

 

Daniel:

No. And so there is a great sitting right outside of Lexington. It's Richmond, it's about 20 minutes away. It has it's another college town, it's got Eastern Kentucky University is there EKU. And you would be surprised on $125,000 property, you want to take a guess at what the taxes are per year.

 

Mark:

No tell me

 

Daniel:

$25

 

Mark:

What Aren't you getting for $25, though? That's what concerns me?

 

Daniel:

Well, it makes a great opportunity for some investments, I actually have put a couple of those up on Roofstock. So you can check those out. And the cap rates on those. I think one of those was like 14%. So it's definitely worth at least checking out.

 

Mark:

So is it just an unincorporated town where they're not paying You know, the local city taxes are what makes it such a steal?

 

Daniel:

Just county taxes, not so much on the city end? And the county taxes are like .099321 or something like that. I mean, it's it's absurd tax rate. And I was like, No, this can't be real. But I got on the property value administration, which investors if you're not checking your PVA rates, you need to go check those out prior to on any potential investment. That's a added bonus tip there.

 

Mark:

PVA stands for what?

 

Daniel:

Property value administration,

 

Mark:

Okay.

 

Daniel:

And basically, they're the city elected officials that go around, they collect the taxes for the city on the property. A lot of people think, well, it's the sheriff's office that does that, well, yes, they go out and they serve the tax, notice that it's all paid to the county or to the city. And so when I said there's some great opportunity to invest in properties, not just in watchmen, but also the outskirts, Richmond in is one of those areas that it's definitely worth checking out.

 

Mark:

Very cool. So we've touched on a lot of the highlights, and I always think it's good to go through and really, you know, put a spotlight on the city, some of the great things, tell us about the negative aspects. And you know, I don't want to beat up on Lexington too much. But this is where I want you to be very forward with us. You know, are Are there any common issues that you see, in most of the properties, you know, that are investment properties that somebody may acquire, but what are the things that investors should be looking out for in keeping their guards up on?

 

Daniel:

I would say a lot of it has to do with whatever pm you're using and pm for property management, just making sure that they're vetting, properly vetting the tenants. Because, you know, it's just like any industry, every industry has their bad apples, and some do not do as thorough job as others. So, you know, just make sure that you properly evaluate your clients out.

 

If you're charging, you know, 595 for rent, you know, that there's probably going to be some, I'm not saying that, that it will always be the case. But we know more often times than not the lower the rent rolls, the core conditions condition that they leave the property and when they leave, and that's not every single tenant, but the majority do because it's not their place. They don't care for it the same way. So we're not putting granite countertops when we go in to those facilities. You know, a nice Formica countertop, a lot of times people think, Oh, well I have to go in I have to get this place.

 

And believe me, I made the same mistake when I invested in my first property after you know, having multiple properties. Now it's just about hey, what can I do? Go and buy it low? Let's repaint the cabinets, refinish them, let's put some new doorknobs or you know, hardware on the cabinets. Let's change out the door knobs put some decent doorknobs put some LED light fixtures in it. Then clean up the curb appeal. Then, you know, okay, now we can get that reappraised it will nine times out of 10 appraise for even higher than what your original purchase for let's refi, refi that pour initial money back out with our repair money, use that money to go buy our next investment and keep growing the portfolio that way.

 

But answering, you know, getting back to your question, I know we kind of went off the tangent on that one. So, tenant mixture, we do have, we do have section eight, we do have a need for, you know, Community Housing, and, you know, those needs. We do have some landlords that, you know, for whatever reason, they, you know, COVID kind of hit them a little hard. And maybe their tenants didn't pay rent, which we know, a landlords experienced that all across the country. So, you know, we didn't experience that much here in Lexington, but we did have a few that they stiffed of the rent, and then, you know, when the moratorium got lifted, then they just bolted rather than face the eviction, which, you know, they got to live in it free for about a year.

 

So they did, you know, kind of do some damage, they didn't really take care of the place, and nothing like major, but, you know, cosmetic wise, they, you know, don't, they didn't take care of it like they should. So I mean, a couple of drywall, patches, some new paint, maybe some new carpets, and then you're out the door, or, you know, in mine, I don't even use carpet anymore, I go completely vinyl. And that's what I'm

 

Mark:

Sure.Well, it sounds like there may be some tired landlords coming, coming to market in the near future, because that is a quite a blow to take and not have income coming in, but still having to pay pay your mortgage. So yeah, that's always the risk that you take. Now, I have to, I think, really good questions that I want to jump into as well as when you get an inspection. And in Lexington, you may say, you know, Mark, there's just one thing that you will see time and time again, that falls on that inspection report. But don't freak out. Like let's not let's not jump to conclusions and say, Oh, I'm out. What are those things that a buyer should expect in Lexington, that is just going to be common, you know, and in something that's going to be easy to remedy versus a deal killer.

 

Daniel:

Okay, so inspectors love to talk about drainage issues, and the effects of groundwater on the foundation. And they'll go on for like three pages in the report talking about all these potential damages that could occur if left untreated. What that means is that on the downspouts, you need to go to Lowe's, you need to get one of those black hoses to attach the downspouts and divert the groundwater away from the house. That's about a $15 fix per downspout.

 

But they will. But if you just read the report, and you're not talking to an investor savvy agent, they will have you convinced that this home needs hundreds of 1000s of dollars in repair or 10s of 1000s I you know, almost as much as the cost to build the place. And that's certainly not the case.

 

Mark:

Yeah, and I think what we're all experiencing right now, we've had a little more rainfall than normal. So I think it's good for any investor to check even their primary homes and make sure that water is going away from the property. Cuz in the south especially. Yeah, the the grounds may dry up like in Texas, we have clay. So you know, when it gets really hot, you don't have the right moisture down there. That's when the foundation issues come about. So yeah, I do agree, you just you got to reroute the water.

 

Daniel:

Now, I will mention that we do have some homes here in Kentucky that were built. And they have some knob and tube wiring. So it's rare to find those. But some of those older homes, like I mentioned in the Kenwick subdivision, some of the older homes there, they're full of knob and tube wiring that are still active. And you're not supposed to splice into those, but a lot of homeowners have spliced into that. So make sure that you look for that on the inspection report.

 

Mark:

That's great. But I think just knowing what's common and what to look for is big and then when you get the inspection report, maybe tell us a little bit about how how you interact with the buyer at that point. So when when the inspection comes back, you know, Roofstock’s, helping pay for that in order for a buyer to get the roof stock guarantees. How do you like to go through an inspection report with your buyers?

 

Daniel:

So we just look at it line by line. And I'll ask them hey, you know, what are your concerns over This section, let's talk about this. Then, after we talk about the whole report, I'll ask them. Okay, so what's the deal breakers? Because we can't ask for every single thing. This is not a punch list. A, you know? What's your top? Top Five deal breakers on this? Okay? So out of those five with what's your top three? So if I can narrow it down to like, one, two or three that, okay, we can have those items requested as repairs. And then, okay, these would be nice to have, but I'm okay If they don't do this, then let's, let's submit that and see where we land.

 

You know, I'm, I'm all about trying to keep everybody on the same team, which I do, you know, bring the other side in, I don't look at it is it's like us versus them. Like, no, we're all involved here. Listen, if we can make this work financially, then, hey, it's a great investment. It's a great opportunity. If we can't work it, okay, well, then we're obviously we got to kill the deal. But I tried to see what other avenues can we take? Before we get to that point.

 

Mark:

Man, this is great. Well, everything I've heard about Lexington has been an eye opener for myself and as an investor you always want to know Where the next markets are that others maybe haven't quite cannibalized, I would like to say you have iBuyers out there, you have institutions out there. And it just seems like Lexington is, you know, more of a local investors market, you're not having as much outside interest. But that may be an opportunity for our Roofstock investors to come out to Lexington.

 

Daniel:

It definitely is. Lexington is like one of those well kept secrets, that is slowly starting to trickle out to the rest of the nation. And what we're seeing, as far as the outside interest, outside interest is high, simply because what you can buy out on the west coast, you can buy multiple properties for that same price, right here on in Kentucky.

 

Mark:

That's amazing. Well, just to kind of close it out. And then we'll ask ask how people can get in contact with you. But the probably the top statistic I always love to look at is the census data. And it shows that 54% of those in Fayette County, which is Lexington and some of the surrounding cities, is that ownership rate is 54%. That national average is 64%. So you have a lot more renters in the area. And then all these economic drivers such as you know, the colleges, you know, the the younger, you know, the the younger renter base that's, you know, graduating and needing somewhere to move up into once they get a job locally. And all the job growth that to me, those are the win win opportunities that again, there's going to be more opportunity even with low supply that you have, there's going to be more to pick from because I think our buyers can be more competitive in the market to find properties in that seven to 9% cap rate, like what you're talking about.

 

In a lot of other markets. That's kind of the unicorn that is fictitious, there used to be a five or seven to 9% cap rate, but those have been compressed and pretty much disappearing at this point.

 

Daniel:

Yeah.

 

Mark:

Glad you could be with us today. Daniel, maybe give us an idea. If somebody wanted to reach out and talk to you a bit more about what's happening in Lexington or, you know, maybe have a conversation before they make an offer. How can they get in touch with you?

 

Daniel:

Best way to get in touch with me is either by phone or text, you can text me at 859-797-4007 or you can email at Daniel@makekyhome.com.

 

Mark:

That is awesome. Thanks so much for joining us today. I am enlightened now. And I'm more than excited to see what kind of activity we get with you and start to drive some offers t so thanks for being on today. Daniel, we really appreciate it.

 

Daniel:

Mark. Thank you again.

 

Mark:

Hey everyone, thanks for listening and participating in today's podcast on Lexington, Kentucky. Daniel brought a lot of good information. So we hope that it's useful for you and we look forward to having you on next time. Happy investing.