Where do we invest near RTP in current situation

Question

I am an out of state investor who wants to invest on a property around RTP. I am hoping Apple's arrival and jobs in RTP will bring in more appreciation and rental potential to those areas.

However APEX/Cary/Morrisville seem to be highly appreciated and my realtor is suggesting to buy in fuquay varina and holly springs and was saying it is very easy to rent in those areas(3br - $1600 to $1900). I am not sure if this can be trusted and wanted to see inputs from locals. My budget was under $500k for single family.

Tim McGarvey · Answer

@Karthik Arun your budget should depend on your investment goals. You mention appreciation potential, which has been a huge upside of investing in Raleigh, Cary, Apex, etc the past several years. Between the housing shortages and job growth many investors are expecting prices to continue to go up, but this is not guaranteed. You'll have a hard time cash flowing on a SFH in Cary/Apex/Morrisville ($1900 rents vs $600k purchase price will just never add up) assuming you're taking on debt to finance it. Many people will bet or speculate on these cities moving forward, based on reasonable assumptions (Apple), but you may be limited on exit strategies if something changes in the world and pricing plateaus. Just understand your numbers and exit strategies - you will likely be losing some money each month while you wait for the appreciation. There are other cities 30-60 minutes outside of this core area that provide better immediate returns, although potentially less appreciation upside (Zebulon, Burlington, Fuquay).

Chris London · Answer

@Karthik Arun people often ask me what the next Cary/Apex is going to be.

Holly Springs announced this week that Amgen will be breaking ground on a $550M manufacturing facility. This is in addition to FujiFilm Diosynth Biotech.If you look at the town's website and the future development there is little question HS is the next Cary/Apex. Link.

I was riding my road bike from Cary to Holly Springs this past Saturday and as I crossed over Old HWY-1 and took a left on Woods Creek Rd it was new home developments, one after the other, all with signs up saying. 'coming Fall 2022'. This is near 12 Oaks for anyone trying to look it up.

Certainly has my attention.

Keith Amado · Answer

I’d say there is still definitely room for potential. The problem would be actually securing something. Even at that price point you will very likely get into bidding wars with home buyers that are looking to live in the home. I would be concerned about overpaying for a home that may not appraise at your purchase price.

As far as ease of renting, if you have a decent home in any of those areas, you should have no issue securing a tenant within 7 days.

Karthik Arun · Answer

Thanks Everyone. With appreciation point of view, do you think cary/Apex/Morrisville have much more potential? I ask this question because trying to see if i am stretch my budget to say 600k and see if i can get a SFH in one of these places.

Also how easy is it rent in cary/apex or morrisville?

Shane Lafleur · Answer

@Karthik Arun

Sounds like you have a good approach on the market. I can confirm You can find something in any area you mentioned for your budget.

I currently live in Holly Springs and though it has a very strong neighborhood feel, the commercial space along 55 is well developed also HWY 540 is making good headway through our area.

Again depending on your goals and efforts, RTP, North Raleigh and coming down through Cary, Apex will be strong suburbs of Raleigh. With that said you might find more for your money in Holly Springs and Fuquay especially which both have decent growth. Even so slightly catching up is the South Raleigh/Garner Area and Clayton are appreciating along with the Raleigh Markets.

Paul Nordhaugen · Answer

I live in Cary. Both of those areas are growing very well and both have a good quality of life. I saw on the news recently that Zebulon is expecting some big employers to come in soon and growth is there too, so you might want to check out that area as well. I have a realtor I could recommend if you don't have one already. I wish you well in your search.

William Boyd · Answer

I live in Raleigh and would agree. Buyers and renters are purchasing in satellite towns like Fuquay Varina and Holly Springs that use to be rural but are developing quickly. Lots of investment in infrastructure as well as in residential and commercial real estate down there. Those areas are definitely worth looking into.

Where do we invest near RTP in current situation

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