North Carolina MSAs premise check, Real-World Guidance Request

3 Replies

Hi all,

I live and invest in NJ, but frustration with the landscape for further investment here has been motivating me to unfold the map and look elsewhere.  Particularly, taxes eating up on average 3-4 months of income every year is getting harder and harder to swallow.  

Like a lot of folks on here I'm sure, I've stretched the search to surrounding states, then to the Midwest, Northwest, Southwest, Southeast, back to NJ and then back around again.  I've read through countless posts and podcasts about dozens of markets and strategies and the information is invaluable.  (BP is awesome).  

I place more weight on the desire for cash flow, but as I believe its more of a spectrum than an either/or, I'm trying to identify markets where there is at least a greater likelihood for appreciation as well. Long story short, I'm drawn to a few of the MSAs in North Carolina for a number of reasons: population growth, job growth, climate, taxes, lower acquisition costs, and I'm a Jersey boy so I like the East Coast. I think this area is going to be attracting people and jobs for the next several decades.

So...Raleigh/Durham, Greensboro/Winston-Salem etc. I'm starting to dig in to these areas. I guess I'm just asking for a premise-check from people who are active there. Doing some preliminary scoping online for example...the following is straight off the MLS

2010 Todd St Greensboro NC

3 beds / 1 bath asking price 65,000

Taxes 785

Seems like it could bring in 700 / month

Those familiar with this market...is this a horrible area, do homes rent out easily, is this somewhat typical? Is this a decent price point? Again, this is about 5 minutes searching the MLS, just trying to get ideas / feedback...

Peter,

That is a rough area, just off of Freeman Mill Road. It may be right a "project".  That is okay if that is what you want. Some areas that may be on the upswing is just south of Gate City Blvd. These are older houses that UNCG has recently moved into that area, after being landlocked for decades.

Also the tax situation in Greensboro has changed , they just revalued property, mine jumped about 16%. It has been a long time.

I hope this helps.

Dana Moore

Hi Dana, I've been poking around Greensboro too, and curious about your comment about areas on the upswing. You mentioned just south of Gate City Blvd and I was wondering are you talking more about the downtown area to I-40, or elsewhere?

@Peter Antipatis

I think you're numbers are pretty spot on.  I purchased a 3/1, 950sqft home in the Lowdermilk area (a little east of downtown Greensboro).  This was in January 2018 and specs were 35K purchase, 15K rehab and rented it out for $750/mo.  

I was a little high on my pricing but after about a month was able to get it rented.  This was also in March when there were some pretty decent storms coming through.  My PM told me that it would probably rent out at $700 and was surprised we got $750.  I like to go a bit on the high side as a built-in filter for tenant quality.


As a SoCal investor, it was a bit different to wait a whole month to rent it out (properties rent out with less than a weekend vacancy here), but the numbers still made sense.  In your case (being from NJ) I am sure you are used to the seasonality of renters and vacancy.

Also, current comps for my purchase are coming in around 65K (in-line with what you are seeing)

Best of luck/skill and let me know if you have any other questions

Aloha,

Matt