I am looking for more information concerning SF rental properties in North Carolina where I have some family. I am looking specifically in the Triad area which encompass Greensboro, Winston Salem and High Point.
Is it realistic to find properties that follow the 1% rule ? I know that property taxes are much lower than where I live now which should be beneficial for the cashflow but I am not too sure about the rent levels.
Also, is there any small multifamily available in those areas (duplex, triplex, quad) ?
Thank you so much for your help and looking forward to reading your answers.
The one percent rule tottally applies in the Triad As for small multifamily (duplex, triplex etc) they are few and far in between although don't let people fool you, they do exist, they are here and I have seen them. There just aren't that many.
Plenty of "1% rule" homes in the triad. Keep in mind these homes may be older and may require some additional cap ex.
The 1% rule does apply in Greensboro. There are also small multifamily properties available but you have to activily engage in this market. Let me know what you are looking for in the small multifamily space. I have a bussiness partner in the Triad area actively pursuing small multifamily properties.
You will probably find that most properties here in Greensboro that meet the 1% rule aren't in neighborhoods that are super desirable. We have a few properties that were close to meeting this when we bought them but most of these were small multi family, duplexes and quads. We tend to look for properties that need some work and offer a chance to bump up the rents.
However, like any other market you need to do a more comprehensive cash flow analysis. You are right that our property taxes are relatively low. For example, I bought a quad 3 years ago ( 4 2 bedroom Apts) for 330,000 which grosses 2800 per month. The cash flow is positive, with probably a 5-6% roi. My first inherited tenant is moving out in a month and I hope to renovate and increase the rent on that unit by 300 per month.
The Zillow app suggested rents seem to be fairly reliable here. I check these first whenever I have a vacancy.
So, where are the cashflow areas?
@Greg Fitch thank you very much for the insight. I do appreciate.
It is completely possible to hit the 1% rule in the triad. There are tons of small multi family properties in Greensboro and in Winston however they don’t come available very often. Good luck!
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