Rocky Mount, NC real estate investments

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Rocky Mount, NC real estate investments

Roger Verastegui
Real Estate Agent · Raleigh, NC · Member since 2018 · 32 posts · 5 votes

I am very interested in the idea of investing in smaller towns in North Carolina, Rocky Mount is a place I have consistently heard of. I was wondering if there are any current investors in that area that would like to shed some light on their experiences? I would be extremely glad to sit down in person or have a conversation over the phone for higher quality communication. I am curious about vacancy rates and affordability in the area. 

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Art Perkitny
Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
6y

@Roger Verastegui

Here is vacancy data for Rocky Mount, NC

Total vacancy is at 16.4%

What you are interested in, however, is rental vacancy rates. This is competed via to following formula:

The figure for rental vacancy pencils out to be 9.1%

This is about 2% higher than what is considered healthy, but also nothing too alarming

As for affordability

For tenants rents represent, on average, 16.2% of median household incomes

For investors, rent to price ratios are hovering a bit south of 0.5% and trending upwards

Cap rates are 2.9% for SFR

Hope this helps! 

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  • Pat LulewiczBusiness Member
    Realtor · Raleigh NC and Greensboro, NC · Member since 2019 · 391 posts · 392 votes
    6y

    @Shiv I Soneja

    0Reply
  • Art Perkitny
    Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
    6y

    @Roger Verastegui

    Here is vacancy data for Rocky Mount, NC

    Total vacancy is at 16.4%

    What you are interested in, however, is rental vacancy rates. This is competed via to following formula:

    The figure for rental vacancy pencils out to be 9.1%

    This is about 2% higher than what is considered healthy, but also nothing too alarming

    As for affordability

    For tenants rents represent, on average, 16.2% of median household incomes

    For investors, rent to price ratios are hovering a bit south of 0.5% and trending upwards

    Cap rates are 2.9% for SFR

    Hope this helps! 

    4Reply
  • Roger Verastegui
    OP
    Real Estate Agent · Raleigh, NC · Member since 2018 · 32 posts · 5 votes
    6y

    @Art Perkitny Thank you a bunch, those infographics display the data very well. 

    0Reply
  • Adam SchneiderPro Member
    Lender · Raleigh, NC · Member since 2012 · 955 posts · 639 votes
    6y

    @Roger Verastegui You might want to join TREIA and attend the monthly Rocky Mount meeting.

    0Reply
  • Shiv I Soneja
    Realtor · Raleigh, NC · Member since 2018 · 36 posts · 7 votes
    6y

    I am familiar with the Rocky Mount market. I have lived in the area for around 8 months but I have been shopping around for longer than that. Here are a few of my observations:

    The one percent rule is possible in this market, whereas it is not possible in Raleigh and other similar markets. This is because home values are so low in RM that you are able to rent a $100,000 house for $850 to $1000 (depending on how you chose torent it). $100,000 goes a lot further in RM than in Raleigh. 

    • -If you go the "primary residence" route, you can have tenants sign 6 mo and 1 yr leases by the room which is more profitable than renting the entire property as one unit. If you are so willing, you can convert the living room into a bedroom and sleep there. 
    • -If you go the "investment property" route, you can place down 20% and receive a decent return (>10%). 

    There is a significant amount of rehabbing going on the Downtown area, partly due to "opportunity zones". The government designates these zones for investors to utilize capital gains and invest/rehab lower income areas to defer or reduce their tax liability on the capital gains. Also, rehabbing is occurring because companies are moving to the area, and other organizations are building up the community (RM Event Center opened 2018 and Rocky Mount Mills opening circa 2016). Talking to locals of the area, they will tell you that right now is the most movement and activity they have seen in Rocky Mount since living there 20+ years.

    These are just some of my observations. 

    Shiv

    1Reply
  • Shiv I Soneja
    Realtor · Raleigh, NC · Member since 2018 · 36 posts · 7 votes
    6y

    @Pat Lulewicz

    0Reply
  • Necho Williams
    Property Manager · Rocky Mount, NC · Member since 2016 · 50 posts · 35 votes
    6y

    Hi, 

    I'm excited to introduce myself. I'm Necho (pronounced Nico). Here's a little about me -- 

    -I'm a licensed real estate broker self managing 27 SFH properties.

    1. 2 in Wilson, NC
    2. 2 in Tarboro, NC
    3. 1 in Edgecombe County (Rocky Mount)
    4. Remainder: Nash County (Rocky Mount)

    21 of my homes are rented, 4 are currently being renovated. 2 are vacant. 

    Rentals are good. Scratch that, rentals are excellent. I have flipped - but I prefer my tenants. 

    You can do well in Rocky Mount: Get to know your tenants character. It's more worth more than excellent credit. Tenants with good character will take care your properties and pay their rent on time and thrive while living in their (your) home. 

    Happy buying and renting. 

    -Necho

    1Reply
  • Roger Verastegui
    OP
    Real Estate Agent · Raleigh, NC · Member since 2018 · 32 posts · 5 votes
    6y

    @Shiv I Soneja Thank you so much for that information, very helpful!

    0Reply
  • Roger Verastegui
    OP
    Real Estate Agent · Raleigh, NC · Member since 2018 · 32 posts · 5 votes
    6y

    @Necho Williams I appreciate you sharing your portfolio and thoughts!

    0Reply
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