Investor Introduction | Out-of-State Investing in NC

3 Replies

BP Community,

My name is Akshat, and I was raised in New Jersey. After graduating from Duke University in 2017, I moved to New York to launch my professional career as an investor focused on Energy and Infrastructure Assets (i.e. solar farms, wind farms, power plants, etc.). 

I have spent the last few months listening to numerous BiggerPockets podcasts, reading the BiggerPockets forums, and studying real estate investment books, such as David Greene's "Long Distance Real Estate Investing" and Brandon Turner's "Rental Property Investing". As such, I am actively pursuing opportunities to build a personal real estate investment portfolio to generate passive income. 

I will be targeting small multifamily properties with strong cash flow potential, and these properties will ideally be located in A-or-B type neighborhoods with A-or-B type tenants. More specifically, my initial search criteria is targeting at least 8.0% pre-tax IRR, 12.0% cash-on-cash yield, and $300 in cash flow per unit.

Given that I went to school in the Research Triangle area, NC is a real estate market that I am keen on further diligencing. As I get started on the diligence work, I had some preliminary questions:

1. Are there any specific competitive advantages the NC real estate market has over other states (TX, TN, FL, etc.)? In other words, why invest in NC vs. anywhere else? 

2. Which areas in NC provide the best opportunity for generating cash flow and meeting the search criteria listed above?

I am excited to start the real estate journey and begin the path to financial independence. I look forward to tackling the steep learning curve that is to come.

Thanks,
Akshat

    @Dawn Brenengen , thanks - three quick follow-ups:

    1. What type of returns are investors currently underwriting in the Triangle area?

    2. What is the best investment strategy to start investing in the Triangle? 

    3. Given that this will be my first real estate investment, I would prefer to enter the market as a small multifamily, buy-and-hold investor focused on A-or-B type neighborhoods with A-or-B type residents. Does this strategy sound feasible in the Triangle?

    @Akshat P. If you can actually find what you looking for as outlined then PLEASE let me in on your secrets I would pay you for them ;) The returns on what you seek would be much lower In reality I think you will find... unfortunately

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