Looking For Properties in Raleigh

12 Replies

I've recently sold an investment property in a more expensive part of the country and I'm starting to look for new properties to purchase (tick-tock goes the clock on my 1031). 
I've settled on the Raleigh area for purchase due to
1) I like the area
2) Raleigh and North Carolina seem to be on the upswing economically
3)I have friends there & it's easy to visit.
I'd like to buy 2-3 houses and I'm currently pre-approved for two $200K houses with 25% down.
I've scanned houses and rental prices on Trulia & Redfin and what I'd really like to find is a few small single family homes around 3 bedrooms that I can rent out for $1050- $1300. That should get me a modest cash-flow positive investment that I can hold on to for 10-15 years.
Does this sound crazy? Which areas should I be looking in? What expectations should I adjust? 

Thanks!

No it doesn't sound crazy. It depends on your goals. Sounds like you're looking for a mix of cash flow and appreciation, which is a good fit for the Raleigh market.

For that price point for a single family home I would be looking at Garner, Clayton, Knightdale, Fuquay area.  You could find something in that price range potentially in Raleigh or Cary proper if you were willing to consider condos/townhomes, but if you're pretty firm on SFHs, then that's where I would look.  

Would you be self-managing these rentals, or using a property manager? If the latter, make sure you are correctly estimating costs. In this market property managers are charging between 8%-10% of rents.

Sounds like a solid plan... Are you seeking turn-key properties, or are you willing to put in some amount of rehab to make rental ready? Are you seeking appriciation or cash-flow? And what is your plan for management?

@Jonathan Taylor Smith I've got enough to do some minor rehab, but I would have to travel to do that, so it's not preferable. Appreciation is a "nice to have" and factors into my decisions, but my main goal is to have the property run cash-flow positive after management fees. If I were in the area, I'd manage it myself, but I'll definitely need to interview some management companies as I settle in on the properties.

Originally posted by @Matthias Shapiro :

@Tiffany Alexy I'm not willing to do condos or townhomes due to a particularly bad run-in with an HOA several years ago. I will need a property manager and I'm factoring that into my purchase plan as well as into what kinds of houses to purchase.

 Sounds like you have a solid plan - best of luck! 

@Matthias Shapiro Have you settled on Raleigh only or  the surroundings as well? If Cashflow is your main objective, then you should consider the outskirts of Raleigh ( Garner, Clayton ) or even Durham county.

Originally posted by @Matthias Shapiro :

Henri, Ty,

Thanks! I hadn't been as focused on the outskirts mostly because I've assumed they would mean a more difficult rental market. Thank you for the tip!

 This is my assumption as well. And my reason for looking more towards the area of Raleigh,  Is this an overall opinion of most? Focus on potential multi family rentals in the “outskirts” ?