Investors in Raleigh, NC

21 Replies

Hello BP,

I've started traveling to Raleigh recently for work. I can see why this was rated as one of the best city capitals to live in and why many from up north are interested in relocating to this city and others who are interested in investing. Does anyone here live and work in Raleigh and/or invests locally into the Raleigh/Durham/Chapel Hill area?

Best,

Ray

Originally posted by @Ray T. :

Hello BP,

I've started traveling to Raleigh recently for work. I can see why this was rated as one of the best city capitals to live in and why many from up north are interested in relocating to this city and others who are interested in investing. Does anyone here live and work in Raleigh and/or invests locally into the Raleigh/Durham/Chapel Hill area?

Best,

Ray

Lots of Raleigh investors on BP. I've been here for 47 years so I've seen quite a bit in the Raleigh market over the years. It is indeed a good place to be both for investing and for general life. I do see it changing, and not for the better. But that is probably just the curmudgeon talking. I want my old Raleigh where I could get to Cary in 22 minutes instead of 45, but I want todays prices. Typical. 

Do you guys have any tips on areas to look at in Raleigh? It seems like some places the rents are 1100 for a 2br but then 2 blocks down the rent goes up to 1500. Do people tend to rent in multi family, single family, or the new condo buildings. I see a lot of newly built condos for rent. Trying to learn a little more about the market. Thank you in advance

@Bin Chen

I’ve seen the trends in home prices tie very closely to the assigned schools. People are willing to pay and be on waiting lists to get their kids in those particular schools. At least that has been my experience in North West wake county and the RTP area. I’ve been here for 20+ years and absolutely love it!

@Bin Chen It is probably easier to specify where you do not want to have a rental. Parts of east and most of southeast Raleigh are not the most attractive areas to live. Rents swing widely depending on amenities. I paid $1,700/month for a 2/2.5 townhome in Boylan Heights so I could be walkable to Glennwood. My neighbors are paying $1,800/month for a 2/1 house in East Raleigh because it was completely renovated. You can also pay $1,100 down the street for something much older. Notwithstanding all of this, the Raleigh price points are not attractive as rents are somewhere in the .5%-.7% range rather than they ideal 1%.

I live and own rentals (SFH and townhomes) in Raleigh. My family moved here from New Orleans several years ago, and we love the area. Great quality of life and still has a small town feel while offering all the amenities of a big city. Although prices are rising, I've found the Triangle to be a sound and stable area to invest due to the growing population and diverse economy with universities, RTP, etc.

Hi @Ray T.

As a wholesaller in the Raleigh/Durham/Fayetteville area I see a lot of deals and know this is a great place to invest and different strategies are likely to favor different areas. 

For example, in Raleigh right now I am seeing more flips rather than buy & holds simply because prices are getting relatively high in many parts of Raleigh while rents are relatively low when compared to other parts of the country (i.e. Philadelphia, D.C. etc.) But as @Ben Koval mentioned, prices do vary based off factors like schools.

For Durham I see a mix of flips and rentals with flips being more prominent for the same reason of price:rent ratio getting a little high right now.

Fayetteville is a different story. With prices still being relatively low, Fayetteville is still showing a lot of BRRRRs, flips, buy & hold and long-term rental plays.

That being said, it doesn't mean you cannot find good deals for different strategies in each of these markets. You just need to know where to find them!

Overall, Raleigh and many places within 1 hour of Raleigh are great places to invest and where you invest should depend on your investing strategy. Population growth throughout NC is on the rise, which typically correlates to long term appreciation, which is another benefit in all three markets to note.

Hope this helps! Good luck with your investing journey!

@Bin Chen I never have a shortage of qualified rental applications for properties 20 min or closer to Duke University/Hospital (Durham). This is the largest employer in the Triangle with UNC down the road ranking #5. I also never have a shortage of qualified applications for properties in S. Durham (near the mall). I find $1500/mo rent to be the sweet spot so you can always reverse engineer what you need to buy to make that $ work.

@Danny Randazzo    
good question = my phone auto-corrected and so my question didn't make much sense. 

I was inquiring whether anyone knows of any build to rent operators in the Raleigh MSA (new construction for rental properties - SFH or townhome variety). For investment and/or partnering...


@Dan Rowley I'm not aware of any specific company but I'm sure they exist. That is an interesting investment opportunity when they are available however I think the downside is still in the small sized scale of the SFR or townhome. Getting more units provides more scale

Originally posted by @Chris London :

@Bin Chen I never have a shortage of qualified rental applications for properties 20 min or closer to Duke University/Hospital (Durham). This is the largest employer in the Triangle with UNC down the road ranking #5. I also never have a shortage of qualified applications for properties in S. Durham (near the mall). I find $1500/mo rent to be the sweet spot so you can always reverse engineer what you need to buy to make that $ work.

Hey Chis. Thanks for posting this insightful comment.  I am planning a move to Raleigh in a few months and will be investing in a SF to live in for a few months and then rent it out. This info helps give me some direction.

Michael Douglas