Real Estate Agent · Tracy, CA · Member since 2016 · 5 posts · 0 votes
Hi Everyone. Hope all is well. I'm shifting my focus to Raliegh, NC to buy my next rental property. I want to buy and hold for 5+ years. But completely unaware of neighborhoods. Please help me understand where I should be buying before it turns out to be another Austin. So far I figured Cary, Morrisville, Durham, Chapel Hill, and Raleigh are better bets being closer to the Research triangle but prices are already looking higher. My focus is Growth areas that are likely to boom after more people start moving there as more Tech Companies get up and running in the Research triangle. Thanks in advance. God bless.
@Rohini Parab Most of the cities you mention depending on how you assign cap-x, repairs, and vacancy you should be able to find turnkey properties off the MLS that leave you slightly cash flow positive each month and over the past year have I personally seen 20%+ property appreciation increases. With the high number of out-of-state people moving here for tech/pharma jobs rents have skyrocketed as well increasing as much as 20% YoY.
Cary/Apex: IMO the best cities for long-term appreciation with the strong development plans for their downtown areas. Many investors don't like these cities due to the higher prices of starter homes ($310K + for a 3/2 ranch house) but at $1800+ rent I think you'll find the best long-term buy-and-hold plays here.
Durham: no question South Durham is the ideal central location for residential neighborhood homes near RTP. Check out Central Durham if you are looking to flip something from the 1950s with deferred maintenance and downtown Durham if you want to transform something old into a trendy urban home.
Chapel Hill: Beautiful city and if you're moving here a must-see but you'll pay at least 1% more in property tax than the other cities and that can add up to at least $250 more per month in expense than you would be paying in any of the other cities and for this reason, I don't look here for investments.
Raleigh: NC State (34K students) if you are looking to get involved in student housing.
Holly Springs/ Fuquay Varina/ Knightdale/ Clayton/ Wake Forest: Some of the most popular cities on the outskirts of the Triangle to invest in. Prices are a little more affordable and with the building of new highways, there are big bets that rapid appreciation is to follow. Personally, I prefer to invest closer to the heart of the Triangle while the prices are still somewhat affordable and may eventually look out here in the future. An SFH in Cary/Apex is really only $25K or so more than an apples-to-apples home in some of these cities and with a 20% down payment that really only translates to another $5K downpayment.
For anyone that wants to learn more about the Triangle, I suggest signing up to get news from WRAL TechWire. Great daily information about the job market as well as occasional info about the housing market and how the two relate.
Hi Rohini, I am Realtor in the area you are looking. There are a lot of areas that have good potential to grow your portfolio. And yes prices are increasing in the area. Let's talk.
Hi Everyone. Hope all is well. I'm shifting my focus to Raliegh, NC to buy my next rental property. I want to buy and hold for 5+ years. But completely unaware of neighborhoods. Please help me understand where I should be buying before it turns out to be another Austin. So far I figured Cary, Morrisville, Durham, Chapel Hill, and Raleigh are better bets being closer to the Research triangle but prices are already looking higher. My focus is Growth areas that are likely to boom after more people start moving there as more Tech Companies get up and running in the Research triangle. Thanks in advance. God bless.
This really depends on what your needs/goals are. Are you looking solely at future appreciation? or COC return? ROI? What is your motive for looking out here vs. other areas?
There are definitely opportunities and growth areas in the Triangle, but you have to marry that together with what you're trying to accomplish. Every investor has different goals and what they want out of investing (esp. out of state from their current state) so you have to balance between what you want vs. what's available in the current market landscape.
@Rohini Parab Most of the cities you mention depending on how you assign cap-x, repairs, and vacancy you should be able to find turnkey properties off the MLS that leave you slightly cash flow positive each month and over the past year have I personally seen 20%+ property appreciation increases. With the high number of out-of-state people moving here for tech/pharma jobs rents have skyrocketed as well increasing as much as 20% YoY.
Cary/Apex: IMO the best cities for long-term appreciation with the strong development plans for their downtown areas. Many investors don't like these cities due to the higher prices of starter homes ($310K + for a 3/2 ranch house) but at $1800+ rent I think you'll find the best long-term buy-and-hold plays here.
Durham: no question South Durham is the ideal central location for residential neighborhood homes near RTP. Check out Central Durham if you are looking to flip something from the 1950s with deferred maintenance and downtown Durham if you want to transform something old into a trendy urban home.
Chapel Hill: Beautiful city and if you're moving here a must-see but you'll pay at least 1% more in property tax than the other cities and that can add up to at least $250 more per month in expense than you would be paying in any of the other cities and for this reason, I don't look here for investments.
Raleigh: NC State (34K students) if you are looking to get involved in student housing.
Holly Springs/ Fuquay Varina/ Knightdale/ Clayton/ Wake Forest: Some of the most popular cities on the outskirts of the Triangle to invest in. Prices are a little more affordable and with the building of new highways, there are big bets that rapid appreciation is to follow. Personally, I prefer to invest closer to the heart of the Triangle while the prices are still somewhat affordable and may eventually look out here in the future. An SFH in Cary/Apex is really only $25K or so more than an apples-to-apples home in some of these cities and with a 20% down payment that really only translates to another $5K downpayment.
For anyone that wants to learn more about the Triangle, I suggest signing up to get news from WRAL TechWire. Great daily information about the job market as well as occasional info about the housing market and how the two relate.
@Rohini I agree with you that this area is poised for long term growth and is an excellent market for appreciation. I’ve been investing here for years and the growth has been very rewarding. @Chris London did a great job of giving an overview of the market. What I tell clients is that if cash flow is top priority look at the sub markets around Raleigh/Durham/Chapel Hill. If appreciation is the top focus, buying closer in where there are established communities with strong demand would be the place to look.
Feel free to reach out if you have more specific questions about areas.
@Rohini Parab That’s what up i change my focus over e there as well. You had any luck yet? @Chris London Great Overview I’m thinking Raleigh, Durham or Fuquay-Varina for my Flip
Going by the stats and trends on Raleigh also seems like a nice prospect?can it be more than a student rental ?can someone knowledgeable of Raleigh throw more light of any hottest zip codes in that area ? Are there any hot spots there ?from an appreciation stand point how does it compare to the other popular areas mentioned above ?
Raleigh inside the beltline (I-440/I-40): This is the 1st way most people reference Raleigh. You are either looking inside the beltline or outside the beltline. Inside the Beltline, Raleigh gets divided again. North Raleigh (high end & expensive), Downtown (constant development & expensive), NC State (Student housing), Southeast (lower appreciation, lower cost, and slow to gentrify).
Raleigh Bedroom Communities (to the South & East): Many investors prefer the cost structure of buying in some of Raleigh's developing bedroom communities. Knightdale, Clayton, Garner, Wendell, etc.
You are correct. Raleigh and suburbs are solid markets for investors. We actively assist investors from all over the country to invest in the Raleigh, Cary, Apex, Morrisville, Durham area. These are close to the Research Triangle Park (RTP) technology hub anchored by Cisco and IBM. Also close by are Duke, UNC and NC State Univ. You probably know that Apple is in the process of setting up their second HQ on the east coast in the RTP area.
Please reach out for an in depth discussion should there be a need.
Going by the stats and trends on Raleigh also seems like a nice prospect?can it be more than a student rental ?can someone knowledgeable of Raleigh throw more light of any hottest zip codes in that area ? Are there any hot spots there ?from an appreciation stand point how does it compare to the other popular areas mentioned above ?
Congratulations on getting started. The Mooresville area continues to see retail, multifamily and infrastructure development. Lake access, easy access to downtown Charlotte as well as the loop its an area that has opportunities in different areas like long term rentals as well as vacation rentals.
@Chris London gives a great run down of the diff areas. I have lived in the Raleigh area for the past 5 years and have an investment property close to NC state if you ever want to jump on a call or message me with any questions I'd be happy to help.
Something else to consider in addition to what everyone has said is that your cost will be significantly higher than the prices properties are listed for in those areas due to supply shortage and high demand. Bidding wars.