First Time Investor Researching Durham/Raleigh NC vs. Columbus OH

Buying & Selling Real Estate
2yFollow

First Time Investor Researching Durham/Raleigh NC vs. Columbus OH

Nick Sokoloff
Member since 2024 · 1 post · 4 votes

I'm new to investing in real estate and am about ready to make my first purchase in an investment property. I was steered towards Columbus OH by an agent I met here on BP. Then, another trusted colleague told me to look in Raleigh and Durham NC. I have been speaking with agents in both places. Before being told to look in Raleigh I was pretty sold on the amount of growth Columbus is showing and all the Tech happening in the surrounding areas. But after speaking with an agent in NC, I'm equally as sold on options in the Durham/Raleigh area. 

The agent in Columbus was encouraging of buying long term rentals in C neighborhoods while the agent in Raleigh was promoting short term rentals in B areas in Raleigh and Durham. Both options seemed to have listings in similar price ranges (250-400k range).

Maybe there isn't a right or wrong here. But I wanted to get more thoughts on these two options from other investors to see if anyone had been looking in these areas as well. The agent in Raleigh pointed out that the jobs coming into Columbus, in particular at the 20B chip plant would likely be more blue collar jobs vs. the higher paid tech work that is entering into Raleigh, which I believe she said was growing by 5,000 residents per...month? 

My goals are appreciation over everything. However, cash flow is always great and having both would be incredible (duh). Hoping to start in a market and really get to know it so that I can buy more over the next few years. 

Any insight welcome. 

Thanks!

4Reply
172 views

Most Popular Reply

Mike PaolucciBusiness Member
Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votes
2y

@Nick Sokoloff

I can't speak much about Raleigh, but as someone who started off OOS investing in Columbus, I can't complain at all when it comes to the appreciation I've experienced. 

Here's an example why:
2021 - purchased a duplex for $145k in C class. Fast forward couple of years, sold it for $195k about 8 months ago and 1031 into an A class duplex. 

The timing was perfect with the A class duplex, but that's the kind of appreciation I've experienced for most of my portfolio in Columbus on top of the cash flow getting better as the years have progressed and rents and increased. 

Happy to answer any questions you might have. 

[email protected]614-892-9184
Reafco - Mike Paolucci 512 Reviews
WebsiteView Page
4Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Ariel Herrera
    Rental Property Investor · Member since 2019 · 19 posts · 25 votes
    2y

    Hey Nick 👋 although I’m not an expert on both markets - based on your goal being appreciation another factor you may want to look at is migration trends.

    Redfin posts data on migration trends by city. By the numbers it looks Durham is a more desirable market for an influx of residents across the US - https://www.redfin.com/city/4909/NC/Durham/housing-market

    0Reply
  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votes
    2y

    @Nick Sokoloff

    I can't speak much about Raleigh, but as someone who started off OOS investing in Columbus, I can't complain at all when it comes to the appreciation I've experienced. 

    Here's an example why:
    2021 - purchased a duplex for $145k in C class. Fast forward couple of years, sold it for $195k about 8 months ago and 1031 into an A class duplex. 

    The timing was perfect with the A class duplex, but that's the kind of appreciation I've experienced for most of my portfolio in Columbus on top of the cash flow getting better as the years have progressed and rents and increased. 

    Happy to answer any questions you might have. 

    [email protected]614-892-9184
    Reafco - Mike Paolucci 512 Reviews
    WebsiteView Page
    4Reply
  • Schaefer Marks
    Member since 2024 · 5 posts · 2 votes
    2y

    Apple is building their East Coast headquarters between Raleigh and Durham. 5,000 jobs with median salary of $240k/year. Google has already build an office in Durham which houses their largest collection of engineers (around 400-500). The agent you spoke with in Raleigh is correct. These are not blue collar jobs. 

    2Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Hey Nick, welcome to BiggerPockets! You’re in the right place to learn about remote investing. For someone who is currently working in Columbus and grew up in Cleveland. I would say, the Ohio market in general is a very beginner friendly state to get started with your real estate journey. I have seen so much growth in Columbus when it comes to appreciation and job opportunities which I have experienced. On average, 80 people move into Columbus weekly. On the other hand, if you have a lower budget, let’s say $100-$150k. Cleveland would be a great market for you. I have experienced cash flow anywhere from 10-18% with so much more to offer. As a real estate agent and an investor, I am on the market daily and explore opportunities for myself and my clients.

    Let me know what questions you might have:)

    [email protected]614-412-2912
    Reafco.512 Reviews
    View Page
    3Reply
  • Avery Heilbron
    Realtor · Raleigh-Durham, NC · Member since 2018 · 324 posts · 218 votes
    2y

    I can't speak as much to Columbus but I am sure you can't go wrong with either. Durham is a great market with lots of price and rent appreciation and a ton of development. I am a realtor in Durham and would be happy to discuss if you end up this way

    2Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    I haven't heard much about Durham but I do know the Columbus population on a percentage basis is growing at a rapid rate.

    [email protected]614-662-1652
    Reafco - Samuel Diouf528 Reviews
    WebsiteView Page
    1Reply
  • Kai Kopsch
    Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
    2y

    Columbus & Raleigh-Durham are both great places to invest as an out-of-state new investor Short-term rentals can be challenging and is always subject to new local registration and taxes. 

    2Reply
  • Hannah Roach
    Real Estate Agent · Fayetteville, NC · Member since 2023 · 24 posts · 28 votes
    2y

    As I cannot speak to the Columbus market, I do know that Raleigh-Durham is a growing market. According to CBS 17 News, Raleigh is the #2 hottest real estate market in the US and Durham is #4.
    You could even invest on the outskirts as well because I know some people would not want to live directly in the city. I am an agent here in Raleigh and I just had an investor purchase a property directly here in Raleigh and is now wanting to invest in Columbus! 

    3Reply
  • Benjamin Carver
    Real Estate Agent · Raleigh, NC · Member since 2019 · 316 posts · 290 votes
    2y

    Cash flow is VERY rare in RDU. Not saying can't be done. I know many airbnb owners cashflowing even while house hacking! Might be able to do it with mid-term too. Basic long-term you almost have to go commercial OR be REALLY good at finding off markets. Wholesalers BEN?! If they found a great deal, wouldn't they just take it for themselves? Most of the time yes. RDU is a great market for appreciation, my focus is to get close to breakeven, make it sustainable, and ride that wave, eventually cashflow with future refi(s) and or by using value add strategies. Happy to chat more on options, reach out aytime!

    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    Where are you finding B level areas in $250k-$400k price ranges in Raleigh/Durham?

    I think you can find high 300s, low 400s. But that bottom portion of the range, hmmm seems suspect. You need to definitely avoid some pockets in Raleigh & Durham that a lot of wholesalers, agents and the like, prey on the newbies to fall victim for. This includes the people on this board.

    Cash flow is merely a function of your downpayment, so to say it's not attainable is wrong. It just means your sacrifice is more cash up front and therefore tied more to the volatility of the house's pricing in regards to liquidity & equity at stake. Cash up front would be a bigger requirement for STRs too so it's not a "cash-flow" method, it's just your moving cash around differently. There's way less risk and variance in LTRs simply due to regulations & laws which nobody has a true view on. 

    The struggle with RTP is non-HOA, non-covenant housing availability. That's your real concern. In regards to Columbus, Columbus is growing for sure I just don't buy the momentum as an outright view like a lot of investors are. Infact, that type of momentum would make me second guess my conviction in general and not even in regards to it versus the RTP. I think assuming growth is linear is also a fundamental flaw in valuation.

    I'm heavily invested in the RTP, so take that for what it's worth but I got nothing to sell you. And intend to get bigger. ****, I probably wouldn't even accept your request if you tried. 

    2Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    2y
    Quote from @Nick Sokoloff:

    I'm new to investing in real estate and am about ready to make my first purchase in an investment property. I was steered towards Columbus OH by an agent I met here on BP. Then, another trusted colleague told me to look in Raleigh and Durham NC. I have been speaking with agents in both places. Before being told to look in Raleigh I was pretty sold on the amount of growth Columbus is showing and all the Tech happening in the surrounding areas. But after speaking with an agent in NC, I'm equally as sold on options in the Durham/Raleigh area. 

    The agent in Columbus was encouraging of buying long term rentals in C neighborhoods while the agent in Raleigh was promoting short term rentals in B areas in Raleigh and Durham. Both options seemed to have listings in similar price ranges (250-400k range).

    Maybe there isn't a right or wrong here. But I wanted to get more thoughts on these two options from other investors to see if anyone had been looking in these areas as well. The agent in Raleigh pointed out that the jobs coming into Columbus, in particular at the 20B chip plant would likely be more blue collar jobs vs. the higher paid tech work that is entering into Raleigh, which I believe she said was growing by 5,000 residents per...month? 

    My goals are appreciation over everything. However, cash flow is always great and having both would be incredible (duh). Hoping to start in a market and really get to know it so that I can buy more over the next few years. 

    Any insight welcome. 

    Thanks!


     Hey Nick, there may not be a right or wrong answer here. I would personally see which market can offer you the best CORE Four and highly consider that. Good luck! 

    1Reply
  • Patrick Knapp
    Contractor · Wake Forest, NC · Member since 2019 · 138 posts · 132 votes
    2y

    @Nick Sokoloff

    Raleigh investor/General Contractor here.

    This market is amazing, but long term rentals are hard to cashflow here just so you know. It’s a pretty solid market imo though.

    Buying a new build could be a good idea as well to prevent maintenance costs, but if you’re trying to BRrrr than bad idea.

    Personally I’m building a 3/2 1200 sq ft in Durham we plan to sell near the regional hospital at 425k which would be a good rental(mid or short).

    Durham has had a rough time in the long term rental game just so you know though. I believe it probably has to do with tech layoffs but I’m not sure…. But it’s a great market still. Biggest thing is to see what’s being built in the areas you’re interested in, apple is building there campus so that’s gonna affect us a lot.

    Hope this helps

    1Reply
  • Alyson Gordon
    Real Estate Broker · Raleigh, NC · Member since 2023 · 79 posts · 57 votes
    2y
    Quote from @Schaefer Marks:

    Apple is building their East Coast headquarters between Raleigh and Durham. 5,000 jobs with median salary of $240k/year. Google has already build an office in Durham which houses their largest collection of engineers (around 400-500). The agent you spoke with in Raleigh is correct. These are not blue collar jobs. 


     Because of this and many other companies with HQs or a large presence here, the home prices are climbing and will continue to. Buying is still competitive as well. Its a great place to invest but you won't see much cash flow though you likely will see a lot of appreciation. It all depends on what your goals are but Raleigh-Durham isn't a place you buy a cute duplex and start printing money :)

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free