Where are the 1% Houses?
I am in the Raleigh/Durham NC market. <2018 there were a few 3/2 houses here and there in sub $200K range. Putting them in the .8-1% range. I was able to pick up a few. Now, the home prices are rising so fast, that rents are not keeping up. I am searching everyday for a deal that can cash flow. But the home prices are so high and rents are not reaching anything close to 1%. Most back of the napkin calculations put the houses at 0.5%-.07%. Putting almost every deal into negative cashflow.
To make matters worse, inventory is very low. There are almost no homes under $300K.
Has anyone had success in this type of environment? Is there strategy that works in this kind of market? Do I tolerate negative cash flow and take advantage of appreciation? Will rents catch up?
The market has changed and I don't know how to evolve my strategy.