Multi-Family Investments in the NC Triangle Area

[Jake Morin]

My name is Jacob and I am in the US Air Force. I am likely to be stationed at Ft Bragg in the next 3-4 months. I recently sold a property management company that also owned three houses in San Antonio, TX and am looking to invest in a duplex, triplex, or quadplex in the Cary/Apex area when I get there. I am looking for some advice on the current state of the market in the triangle area. More specifically, I know Cary is a very nice/expensive city with the best schools but can you find value found there in the multi-family market? It appears that the real estate market in Apex would be a solid place to invest in new-builds, does that seem right? Thank you so much for the help!

[Caleb Heimsoth]

@Jake Morin I used to live in Cary. There’s very little multifamily in general in the Raleigh/Cary/apex area. The stuff that hits the market usually gets multiple offers within a few days.

I know an investor who just paid 270k for a duplex in Cary. They had one two hour open house and by the end of the open house, there were 8 offers (all of them were cash) and something like 6 were above asking (asking was 260k).

The main reason he got it was he had a prior relationship with the listing agent. Also keep in mind one unit was vacant and needs about 15k in work. So that’s 270k to buy it, 15k to rehab it and he will probably get 1200-1300 rent per unit (2600 total). That’s the type of deal you’ll be looking at in those areas of the triangle.

Durham can be a bit cheaper but you also need to be aware of where you’re buying.

Most local investors I know who are still actively buying are buying in Fayetteville, rocky mount, garner, etc.

People still do deals in Raleigh area but it’ll be less than 1 percent rule and it’ll cost you 40-50k in a down payment