Purchase in town where there is literally nothing to rent?

Purchase in town where there is literally nothing to rent?

Contractor · Raleigh, NC · Member since 2019 · 16 posts · 8 votes

So, I am looking at purchasing for a buy and hold on the outskirts of RALEIGH, NC. Which most may know is rapidly growing. I am looking far enough out to be affordable for me at this moment because the closer you get to RALEIGH, the higher the purchase price. When I look on Zillow to see the current rents in certain areas, I have found a couple towns, that literally have no houses listed for rent. I have talked with some acquaintances and they say all their units they have are always 100% full. Common sense tells me, if there are deals in these towns, I need to buy them up, and I can probably set a better rent rate since there is not many homes available to rent??? Am I right?

I can move my cursor (on Zillow) to the next town, 10 to even 20 minutes away, and there are several houses available for rent. Thoughts? This might be the market that I need to focus on?

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Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
6y

Check more sources than just Zillow... RentOmeter perhaps... or contact a PM/agent in the area who may have an idea of rental densities. Or, spot check with county records in your target neighborhoods. Just check for non-people owners (e.g. LLCs) or mismatch between property owner and address. 

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    @Jeff Williams  Buying in a town with low vacancy rates is often a good move.  As you know people with houses in that area, talk to them about the type of tenants that they get.

  • Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    In more rural areas, it's possible that rentals are marketed differently than in the city. ie, maybe people put ads in the newspaper, put up paper plate ads on the local supermarket bulletin board with tear off phone numbers, etc. Probably need to do some actual legwork there and find out how people rent properties around there. Ask someone, "if you were looking for a house to rent, how would you find one?"

    Is this "commuting distance" from Raleigh? 

  • Contractor · Raleigh, NC · Member since 2019 · 16 posts · 8 votes
    6y

    @John Teachout

    Yes, it is commuting distance. But I’m not sure I need to focus on distance to Raleigh. Only because in this area of NC, there seems to be growth, jobs, colleges, military, etc. so whether you are 1 hour, any direction of Raleigh, there is something that is drawing the residents.

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    6y

    Check more sources than just Zillow... RentOmeter perhaps... or contact a PM/agent in the area who may have an idea of rental densities. Or, spot check with county records in your target neighborhoods. Just check for non-people owners (e.g. LLCs) or mismatch between property owner and address. 

  • Investor · Raleigh, NC · Member since 2019 · 1 post · 0 votes
    6y

    Im in Raleigh.  Happy to give you my $.02.   What areas outside are you referring to specifically?   Some are too far for commuters, and others are just undesirable in the market. Let me know what you are thinking and happy to give my #bornhere feedback.

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