Fayetteville, NC - Any thoughts on this area as a rental location

15 Replies

I know there are investors that like the area and do well there. Military bases nearby provide consistent demand, and as Raleigh continues to grow it should get better. You need some one very familiar with the area if you are going to invest. My brother lives in Raleigh and it seems like the first 30 minute of the news every night revolve around the crime in Fayetteville.

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Fayetteville is a good market for rentals. I own 32 doors there 

Upsides - recession resistant cash flow, houses are mostly small, simple, and don't need much. 

Downsides - very little appreciation growth, rents are unlikely to increase

FANTASTIC town to get your feet wet. Good luck! 

@Geren Williams

@Geren Williams, seems like a location with steady growth and little volatility. Here are some interesting metrics derived from Census data for Cumberland County which contains Fayetteville.  

Population in Cumberland County has be increasing steadily since 2007

Rent has increased marginally, enough to combat inflation. About a 1.9% CaGR. 

@Geren Williams Fayetteville, NC is an ideal place for B/H investors, particularly new ones just learning. It is a military town (Fort Bragg), so that comes with +/- versus non-military towns--do your research. Most people will tell you that the rental performance indicators are strong, and that you should not expect much in the way of appreciation. If researching ARVs, know that the Fayetteville MLS does SF ranges of 100 (i.e. 1100 to 1200 SF), and that Zillow will just make everything end in 50....i.e. 1150 SF. So, look to the tax record for the actual SF for a better chance at accuracy. You'll want to ask whether the property has a special assessment coming up. There's lots of conversion to city water/sewer going on. I own a half dozen in the area. You might want to reach out to the local HomeVestors franchisees in Fayetteville to see if they have any off-market inventory available.

Good advice Adam Schneider! Zillow seems to miss bonus rooms in their square footage. That can add sometimes 250 sf! Another thing to look for in the Fayetteville market is underground oil storage tanks in the older ranch homes. Always get a termite inspection! There are many places in Fayetteville that are having problems with well water also. Just my two cents!

@Geren Williams I am a real estate agent with Five Pillars Realty Group. We work mainly with investors. We're familiar with the local market and are investors ourselves. I have a small multi-family that we house hack, we also have a good relationship local vendors i.e contractors, lenders, property management, etc. If I can be of any help, please feel free to reach out.  

@Geren Williams As a good amount has already been discussed on the market, I would also agree it is a cash-flow market with little appreciation compared to Durham/Raleigh for example. However, it has a easier entry to the market then Durham/Raleigh for an investor and the large-tenant pool makes for steady rents. Additionally, it has become a target for larger apartment investor players due to increased attention with regards to the new construction, ie.  Minor League Baseball Stadium being built and what this holds for the area.

Side note: We recently acquired 13 units in Fayetteville, NC working with Five Pillars Realty Group mentioned above, solid group of folks if you need a network and broker relationship in the area.

Definitely good investing in Fayetteville (and surrounding areas).  The turnover on property is high at all times, so there's a killing to be made if you're a savvy investor and can spot the deals.  I do a little bit of everything, but primarily sales and management of investment homes for out of state investors. 

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@Geren Williams , local knowledge matters in Fayetteville. It's been a few years since I lived there. The crime tends to be concentrated in a few areas (probably best to avoid those), but has decreased in others (like the area near Spring Lake, now that they have a police department). Fayetteville also contains some of the most highly and most poorly rated school districts in NC.

The baseball stadium development is probably a wildcard. Minor league stadiums are generally money losers for cities that invest in them, and NC is ground zero with examples. 

Originally posted by @Mac F.:

The baseball stadium development is probably a wildcard. Minor league stadiums are generally money losers for cities that invest in them, and NC is ground zero with examples. 

don't get me started.....

The baseball stadium is obscene to me. Fayetteville is a city with a single employer and mostly service based disposable income type economy, so the last responsible thing to do would be spend $40,000,000 on another disposable income sink. Of course the tax payers love the idea, their fiscal irresponsibility and lack of understanding knows no bounds.

They tried asking citizens to pay for parking at the new garage next door and the response was outrage.....LOL! 

Blind leading the blind