North Carolina investing

11 Replies

Hi!

I am new to investing and currently living in NJ. I am looking to invest out of state and will be makin a trip to North Carolina soon to begin getting familiar with the Raleigh area. 

Any suggestions on towns to visit or check out? Either looking for single family or duplex. 

Originally posted by @Roseann DeRosa :

Hi!

I am new to investing and currently living in NJ. I am looking to invest out of state and will be makin a trip to North Carolina soon to begin getting familiar with the Raleigh area. 

Any suggestions on towns to visit or check out? Either looking for single family or duplex. 

 It all depends on what your goals are, your budget, the radius out from Raleigh that you're interested in, whether you are looking for high-income or working-class or low-income tenants, urban or rural, and more.  Give us Carolinians a little more info and we can offer more targeted suggestions.

Fayetteville, Fayetteville and Fayetteville. It's a military town so there are always renters (over 50% of the town). Military members don't want to buy since they can be required to move for work. That can scare some people, but the army doesn't like to move people unless they can keep them there for at least 3 years so you don't have to worry about them moving in and being sent away quickly. There's also a few colleges to provide renters in parts of town. Houses are cheap as well. 

I kind of get why new investors look for cheaper properties in smaller cities / towns but you also need to keep in mind, that yes, you can get property in Greensboro for half the price then in Raleigh, but also your appreciation will be much less. Eg. Greensboro market went up about 35% since 2000, while Raleigh market is up over 70% (Based on Trualia market trends stats)

I don't think this makes a big difference for fix and flip, but if you are thinking about holding your investment property for 10-20+ years as rental, it might make a huge difference for your investments.

A word of caution about your willingness to look up to 1.5 hours from where you live.  I know that this has become a popular “rule of thumb” (@Brandon Turner ), and I suppose some people might find it acceptable, but if you consider self-managing or doing some of the maintenance yourself then a 3 hour rountrip is a lot.  Picture yourself dealing with a tenant call about a leaky toilet.  You either hire a local plumber/handyman ($100-150), or you get in your car and spend the afternoon on the road.  That is an expensive toilet flapper either way!  

It’s an individual choice, of course, but I have owned a duplex 45min away for several years now and I’m putting it on the market, exactly and exclusively for this reason.  Just too much hassle for me to make that round trip - and that is half of what you think you are willing to accept...

From the sound of your post, it doesn't sound like you are planning to move to NC and you are investing out of state. I would suggest you let your interviews with property management companies help you locate a specific place in your target area. They should be able to shed some light on where the wisest place to put your money would be. I would also look at how many property management companies are in that specific area in case your relationship with one does not work out in the end.