Rental Property Investing in North Carolina

New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes

I'm strongly considering investing in NC as an OOS investment option (though I am still looking locally for a future househack too).

I am interested in cash flow and do not have a crazy budget to buy high end appreciation focused properties in boujee areas :)

I am most interested in small MFHs (2-4 units), though I am open to SFHs in certain (niche) cases.

What are the best reasonably-priced cashflow-friendly areas (cities, towns, or zip codes) in NC for...

1. Traditional MFH LTRs

2. MTRs (hospitals)

3. STRs (tourism, whether from out of state residents or locals)

4. Section 8

5. Student housing (universities)

While I understand I can look up a (really long!) list of schools and hospitals and attractions in NC, an insider scoop to narrow things down would be extremely helpful.

I'm also open to hybrid situations within a property such as (1) MTRs in cooler months (coincidentally sick season) and STRs in warmer months (coincidentally travel/vacation season) OR (2) (furnished) student housing during the school year and STRs during the summer.

Lastly, if there are any areas to definitely avoid, I would appreciate the pointers!

I also appreciate Core 4 recommendations.

Thanks!

P.S. I selected North Carolina due to its landlord-tenant laws, property taxes, income taxes, insurance rates, proximity, climate, cash flow, and my pleasant personal experiences there :)

I have NOT yet researched STR laws there or city specific / non-owner occupied property taxes.

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes

@Jewel B.

Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

[email protected]248-209-6824

Logical Property Management4.9469 Reviews

Website View Page

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Ryan Lam
Financial Advisor · San Jose, CA · Member since 2020 · 29 posts · 15 votes
3y
Following. Hoping to gain some insight on this as well. I am in a similar situation starting to look at NC from out of state.

So far it seems like the research triangle is a strong market, the Piedmont triad is a little cheaper, and Fayetteville a little cheaper. Haven’t looked into specific neighborhoods. Cash flow vs appreciation would also narrow down the focus to specific regions.

One challenge I have run into was trying to locate reputable property managers. I’ve reached out to a few a while back and didn’t hear back from all of them. I would imagine it helps on the property management side to narrow down a specific market because it seems they usually cover one of those regions, not multiple.

0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Ryan Lam:

Following. Hoping to gain some insight on this as well. I am in a similar situation starting to look at NC from out of state.

So far it seems like the research triangle is a strong market, the Piedmont triad is a little cheaper, and Fayetteville a little cheaper. Haven’t looked into specific neighborhoods. Cash flow vs appreciation would also narrow down the focus to specific regions.

One challenge I have run into was trying to locate reputable property managers. I’ve reached out to a few a while back and didn’t hear back from all of them. I would imagine it helps on the property management side to narrow down a specific market because it seems they usually cover one of those regions, not multiple.

Research Triangle my understanding is way more expensive though. Triad and Fayetteville have solud potential. Also had several other small cities/large towns pop up on my radar for different reasons whether STR or MTR or student housing or just looking at a more secondary or tertiary LTR market. Don't have my list in front of me at the moment but Stanton and Boone come to mind.
0 Reply
Brandon Vanderford
Property Manager · Raleigh, NC · Member since 2022 · 117 posts · 110 votes
3y
The area is pricier than it used to be, but I would still suggest that you consider north Durham as a location that checks all five of those boxes.
1 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
3y
@Jewel B.
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.
[email protected]248-209-6824
Logical Property Management4.9469 Reviews
Website View Page
3 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Drew Sygit:

@Jewel B.
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

Thank you so much for the incredibly detailed and insightful response!
0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Drew Sygit:

@Jewel B.
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

Sounds like a Class C property in a Class B area that I can fix up and rent out may be best for me :)
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
Quote from @Jewel B.:

Quote from @Drew Sygit:

@Jewel B.
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

Sounds like a Class C property in a Class B area that I can fix up and rent out may be best for me :)

Fix up OOS. That seems hard, how do you plan to do that?
0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @V.G Jason:

Quote from @Jewel B.:

Quote from @Drew Sygit:

@Jewel B.
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

Sounds like a Class C property in a Class B area that I can fix up and rent out may be best for me :)

Fix up OOS. That seems hard, how do you plan to do that?

For one, an excellent team. I'm also more than happy to travel there to check in. And I do have a few friends in MC as well.
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
Quote from @Jewel B.:

Quote from @V.G Jason:

Quote from @Jewel B.:

Quote from @Drew Sygit:

@Jewel B.
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

Sounds like a Class C property in a Class B area that I can fix up and rent out may be best for me :)

Fix up OOS. That seems hard, how do you plan to do that?

For one, an excellent team. I'm also more than happy to travel there to check in. And I do have a few friends in MC as well.

You'd have to station there to babysit for a period.
0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @V.G Jason:

Quote from @Jewel B.:

Quote from @V.G Jason:

Quote from @Jewel B.:

Quote from @Drew Sygit:

@Jewel B.
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

Sounds like a Class C property in a Class B area that I can fix up and rent out may be best for me :)

Fix up OOS. That seems hard, how do you plan to do that?

For one, an excellent team. I'm also more than happy to travel there to check in. And I do have a few friends in MC as well.

You'd have to station there to babysit for a period.
Not opposed to it! I can work remotely anywhere in the country for the most part.
0 Reply
Kenneth Woodruff
Investor · Lancaster, PA · Member since 2022 · 74 posts · 104 votes
3y
@Jewel B. From a fellow PA resident I wish you luck! We have properties across NC. East coast, in Southport, quiet beach area, not a lot of commercial so vacation rental is lower than typical beach areas, but costs are lower than a Myrtle, or Fla beach, worth looking there is beach is something you want, Oak Island is nice, quiet and a great spot. Charlotte area is nice, and north up 77 has some great spots near the lake, expect to pay $$$$ there. Asheville, our favorite property, great city, great culture, extremely pricey entry now, will be tough to cash flow but appreciation should remain strong. Be careful across the state if you are looking at STR as many local municipalities have started to ban them in one form or another. Woodfin, just north of downtown Asheville just created a permitting process, the legal side of how they all hold up is yet to be determined, but the trend is there. Fayetteville is a military town and prices a bit more friendly, with good rental demand, but still tough to cash flow. Good luck in your search, if you decide to buy or need any references for PMC, GC etc.. feel free to reach out.
1 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Kenneth Woodruff:

@Jewel B. From a fellow PA resident I wish you luck! We have properties across NC. East coast, in Southport, quiet beach area, not a lot of commercial so vacation rental is lower than typical beach areas, but costs are lower than a Myrtle, or Fla beach, worth looking there is beach is something you want, Oak Island is nice, quiet and a great spot. Charlotte area is nice, and north up 77 has some great spots near the lake, expect to pay $$$$ there. Asheville, our favorite property, great city, great culture, extremely pricey entry now, will be tough to cash flow but appreciation should remain strong. Be careful across the state if you are looking at STR as many local municipalities have started to ban them in one form or another. Woodfin, just north of downtown Asheville just created a permitting process, the legal side of how they all hold up is yet to be determined, but the trend is there. Fayetteville is a military town and prices a bit more friendly, with good rental demand, but still tough to cash flow. Good luck in your search, if you decide to buy or need any references for PMC, GC etc.. feel free to reach out.
As long as STRs aren't totally banned, one might say a permitting process and increased barriers to entry could be a good thing as it reduces competition.

0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Kenneth Woodruff:

@Jewel B. From a fellow PA resident I wish you luck! We have properties across NC. East coast, in Southport, quiet beach area, not a lot of commercial so vacation rental is lower than typical beach areas, but costs are lower than a Myrtle, or Fla beach, worth looking there is beach is something you want, Oak Island is nice, quiet and a great spot. Charlotte area is nice, and north up 77 has some great spots near the lake, expect to pay $$$$ there. Asheville, our favorite property, great city, great culture, extremely pricey entry now, will be tough to cash flow but appreciation should remain strong. Be careful across the state if you are looking at STR as many local municipalities have started to ban them in one form or another. Woodfin, just north of downtown Asheville just created a permitting process, the legal side of how they all hold up is yet to be determined, but the trend is there. Fayetteville is a military town and prices a bit more friendly, with good rental demand, but still tough to cash flow. Good luck in your search, if you decide to buy or need any references for PMC, GC etc.. feel free to reach out.

What are your thoughts on some smaller markets such as Boone/Blowing Rock (STR/mountain/outdoorsy getawaways) or Stanton (LTR)?
0 Reply
Kenneth Woodruff
Investor · Lancaster, PA · Member since 2022 · 74 posts · 104 votes
3y
I think those areas will be ok for entry, I don't know anything about the markets though. STR cabins would be a good find
0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Jewel B.
will this be your first investment?
why not invest locally?
0 Reply
Pat LulewiczBusiness Member
Realtor · Raleigh NC and Greensboro, NC · Member since 2019 · 396 posts · 393 votes
3y
I think that team who wants you to succeed can overcome the need to "station out here to babysit". "Babysit" one member who you pay accordingly to babysit the rest of the team - aligned financial interests overcome most roadblocks. I've helped numerous OOS clients coordinate the rehab work and I report back-and-forth as the intermediary, so its definitely a great strategy.
You're transitional MFH LTRs that do more than 1-2% CoC will be best found in secondary and tertiary markets - think Fayetteville, High Point, etc. Duplexes are common. Triplexes are tough and will generally look like Frankensteins. Quads are somewhere in the middle depending on market.
Most people have hit on it, but STRs are best served in your vacation towns - beach and mountain. New Hanover County is a great location for that and can support the MTR market as well if desired or needed. Most large and medium metros will support the MTR strategy given the type of employment we have in those. Your real deal breaker is HOA restrictions on renting for less than 12 months at a time, so you limit the inventory available for these strategies if it has an HOA. Just means you have to move hard and fast when you find the right now. Also, consider the cost of management being significantly higher if you outsource vs self-manage on STRs.
Section 8 Housing Authorities will vary drastically in communication and ease/difficulty of working with you from city to city. Have had great success both personally and anecdotally with High Point, Winston and Greensboro HA's.

PM me if you want to discuss any of this further; we'll chat about goals nad strategy.
1 Reply
Jay ThomasPro Member
Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
3y
North Durham is a great option for those looking to settle down in an area that has it all. It offers a quiet, suburban atmosphere with strong schools and plenty of recreational activities nearby. Although the cost of living is higher than it was in years past, there are still affordable housing options available. From parks and trails to restaurants and shopping centers, North Durham has an abundance of amenities and attractions for every lifestyle. The area is known for its friendly people, welcoming atmosphere and high-quality services. Investing in North Durham real estate can provide a safe, secure and comfortable place to call home. Plus, you’ll be part of a vibrant community that values connections and encourages growth. If you’re looking for a place to call home that offers all the benefits of city living but with a laid-back suburban feel, North Durham is your ideal destination.
[email protected]832-889-5607
3 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Nicholas L.:

@Jewel B.
will this be your first investment?
why not invest locally?

Yes it will be my first investment.
I'm looking locally too but there is limited inventory, so I would probably need to look off-market. In addition, if I'm buying locally, I would like to use an FHA loan and house hack, but I won't be able to start the conventional loan process for a few months.
0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Jay Thomas:

North Durham is a great option for those looking to settle down in an area that has it all. It offers a quiet, suburban atmosphere with strong schools and plenty of recreational activities nearby. Although the cost of living is higher than it was in years past, there are still affordable housing options available. From parks and trails to restaurants and shopping centers, North Durham has an abundance of amenities and attractions for every lifestyle. The area is known for its friendly people, welcoming atmosphere and high-quality services. Investing in North Durham real estate can provide a safe, secure and comfortable place to call home. Plus, you’ll be part of a vibrant community that values connections and encourages growth. If you’re looking for a place to call home that offers all the benefits of city living but with a laid-back suburban feel, North Durham is your ideal destination.

I will check it out!
0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Pat Lulewicz:

I think that team who wants you to succeed can overcome the need to "station out here to babysit". "Babysit" one member who you pay accordingly to babysit the rest of the team - aligned financial interests overcome most roadblocks. I've helped numerous OOS clients coordinate the rehab work and I report back-and-forth as the intermediary, so its definitely a great strategy.
You're transitional MFH LTRs that do more than 1-2% CoC will be best found in secondary and tertiary markets - think Fayetteville, High Point, etc. Duplexes are common. Triplexes are tough and will generally look like Frankensteins. Quads are somewhere in the middle depending on market.
Most people have hit on it, but STRs are best served in your vacation towns - beach and mountain. New Hanover County is a great location for that and can support the MTR market as well if desired or needed. Most large and medium metros will support the MTR strategy given the type of employment we have in those. Your real deal breaker is HOA restrictions on renting for less than 12 months at a time, so you limit the inventory available for these strategies if it has an HOA. Just means you have to move hard and fast when you find the right now. Also, consider the cost of management being significantly higher if you outsource vs self-manage on STRs.
Section 8 Housing Authorities will vary drastically in communication and ease/difficulty of working with you from city to city. Have had great success both personally and anecdotally with High Point, Winston and Greensboro HA's.

PM me if you want to discuss any of this further; we'll chat about goals nad strategy.

Wow, thank you so much for such a detailed response.
0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Jewel B.
OK - there is limited inventory everywhere. House hacking locally is a much more powerful beginner strategy than buying something random OOS.
0 Reply
Jared Trindade
Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes
3y
Hey Jewel! NC can be a great location to invest in, MFHs can be effective in most city areas in NC, as there is always a demand for cheaper rentals. Fayetteville is a great rental location in general (No Matter which way you go) As the military population is high and it is primarily off base and interwoven with civilians. I believe the last time I check Fort Bragg is the largest military base in the world, with 55% of the military population living off post. I used to sell cars in Fayetteville, and every week there was some new guys being shipped in from across the country who always need two things if they want out of the barracks. A Car, and place to stay. I currently live locally here in a Fayetteville as a licensed agent, and have seen the demand for housing as it relates to rentals always being extremely attractive in the area.
Alternatively you can look to places like Durham NC, only recently in the past couple years have investors been going crazy in Durham, for a long time it was a no go zone for a lot investors. That has changed and become a hot zone! With college and a rather large municipality Durham could be a great location to look as it relates to students.
I'd love to connect, I specialize in primarily off market properties in NC, and might have tools and resources to help you find an idea of where and what might benefit you.
Best wishes!
2 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Nicholas L.:

@Jewel B.
OK - there is limited inventory everywhere. House hacking locally is a much more powerful beginner strategy than buying something random OOS.
I am looking into both options. And out of state doesn't necessarily mean randomly selected. I have been researching markets based on several factors and chose that one as high potential for a number of reasons, not to mention I have actually been there before and have some friends out that way, and I would happily go back and visit to house hunt. If something becomes available here first for househacking, great! And if something becomes available there first with high cash flow, great! I can then roll that higher cash flow forward into a local house hack as soon as possible. For example, STR/MTR/student housing (wish can also be used for personal use) in NC with higher cash flow, then use the cash for an FHA MFH house hack here. I like to stay committed to my goals but flexible in my approach so time will tell. Thank you for sharing your thoughts. I appreciate dissenting opinions.
0 Reply
Jewel B.Pro Member
OP
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 121 votes
3y
Quote from @Jared Trindade:

Hey Jewel! NC can be a great location to invest in, MFHs can be effective in most city areas in NC, as there is always a demand for cheaper rentals. Fayetteville is a great rental location in general (No Matter which way you go) As the military population is high and it is primarily off base and interwoven with civilians. I believe the last time I check Fort Bragg is the largest military base in the world, with 55% of the military population living off post. I used to sell cars in Fayetteville, and every week there was some new guys being shipped in from across the country who always need two things if they want out of the barracks. A Car, and place to stay. I currently live locally here in a Fayetteville as a licensed agent, and have seen the demand for housing as it relates to rentals always being extremely attractive in the area.
Alternatively you can look to places like Durham NC, only recently in the past couple years have investors been going crazy in Durham, for a long time it was a no go zone for a lot investors. That has changed and become a hot zone! With college and a rather large municipality Durham could be a great location to look as it relates to students.
I'd love to connect, I specialize in primarily off market properties in NC, and might have tools and resources to help you find an idea of where and what might benefit you.
Best wishes!

Great point about a car and a place to stay! After all, housing, transportation, and food are typically the biggest three expenses a person has.
Thank you for the insightful response, and I would definitely be interested in connecting.
0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Jewel B.
OK - it's not really efficient to try to use cash flow from an out of state property to fund a house hack. Typically in the first few months or longer, there isn't much cash flow coming in as you pay a listing fee, clean up, stabilize, etc. - so cash is going to be going out, not coming in, potentially setting you back substantially on your house hack goal.
Do you have the 10-25% down payment + reserves for something OOS?
0 Reply

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