Does it Make Sense to Buy and Hold in the Triangle Area, NC
Hi! I am a total newbie so please take it easy on me. =) But I'm wondering if it's worth it to consider buy and hold investing in the Triangle Area, NC (Raleigh-Durham).
I just learned about the 2% rule and it doesn't seem to apply for this area. For example, look at this 3 bedroom, 3 bath property in Morrisville NC (MLS 1963147):
- Sale Price: $210,000
- Size: 1,856 sqft
- Built: 2000
- HOA: $40
- Zillow Estimated Mortgage: $1,070 per month
- Zillow Rent Zestimate: $1,340
If I am to apply the 2% rule, then I should try to rent this house at around $4,000 !!!
But the Rent Zestimate is about right for this place, around $1,200 to $1,400 per month. I'm thinking I'll be getting a negative cash flow for this property, and for most properties in the area.
Are some ares just not ideal for buy and hold investing? Should I instead look at another city? I am considering the Triangle area because I live her.
Thank you in advance for your answers.