Affectionately known as the Bluegrass State, Kentucky has a lot to offer aspiring real estate investors. One primary attribute of the Kentucky housing market is affordability. With a median home value that is approximately $100,000 less than the national average, Kentucky is receptive to first time flippers looking for an area that is relatively safe and relatively affordable.
Now let’s dive deeper into how to flip houses in Kentucky.
Kentucky House Flipping Stats
Median Purchase Price
Median Resale Price
Price Per Square Foot
Kentucky Population Size
Median Household Income
High School Graduation
Travel Time To Work
Best Cities for Flipping Houses In Kentucky
- Bowling Green
Safest Areas In Kentucky
- Fort Thomas – Safety Score: 89.83
- Independence – Safety Score: 89.24
- Madisonville – Safety Score: 87.30
- Danville – Safety Score: 86.74
- Erlanger – Safety Score: 86.34
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In Kentucky
- Find a property in Kentucky that is undervalued
- Source funding from a reputable hard money lender in Kentucky
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In Kentucky
1. Use FlipScout By New Silver
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Kentucky.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Kentucky, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
Kentucky Housing Market Analysis
House Flippers In Kentucky Are Focusing On Good Areas: The median resale value of house flips ($183,840) is higher than the median home value in Kentucky ($159,346). This indicates that property investors are focusing on run down homes in mid-to-high income areas where they can make a sale quickly after the renovations have been completed.
Experienced flippers know how to transform the after repair value of a home, by focusing on renovations that are known to increase resale value. In addition, house flippers are clearly choosing the right areas, knowing full well that the desirability of a suburb has a fundamental influence on the final sale price.
Home Values Have Appreciated By 7.1%: According to Zillow, home values in Kentucky appreciated by 9.5% over the last year. Moreover, property prices have been steadily increasing since late 2012.
Despite taking a small dip when covid-19 first arrived in the US, the Kentucky real estate market has responded well since then. Historically low interest rates have increased demand for homes, while the supply of houses hasn’t increased proportionally. This is a recipe for continued home appreciation, at least in the short term.
Homes In Kentucky Are Affordable: The median home value in Kentucky is approximately $159,346, whereas the median home value in the United States is $266,222. That’s about $100,000 less than most states. This is good news for first time home buyers and first time flippers. It reduces the risk involved when flipping houses, and it reduces the capital needed for new homeowners to take their first step on the property ladder.
Higher Than Average Revenue Per Flip: Where the average revenue per flip throughout the US is just north of $60,000, the average revenue per flip in Kentucky is approximately $72,400. This is excellent news for house flippers. It means that you can potentially spend extra budget on top class renovations, knowing that you should comfortably recoup your losses when the home is resold.
For more details on how to figure out the right price to pay for a property in Kentucky, have a look at our detailed article on using the 70% rule.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
If you’re committed to flipping houses in Kentucky, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.