I live in California but I'm looking for properties out of state to invest in due to the high prices in Southern California. One of the areas I'm considering is Raleigh/Durham/Chapel Hill.
This area is on the list of considerations for me because I think there are a lot of demographic trends that favor long-term growth. Companies such as Apple and Amazon are considering 2nd headquarters in the area. There is a large talent pool from prestigious universities in the area. Etc.
I'm looking for a modest cash-flow positive turnkey investment. I believe we are late in the real estate cycle and there might be a drop in housing prices (which I am ok with), and in such a scenario I would like the rental income to be able to at least cover the mortgage payments and would be ok with paying for other costs out of pocket. I should be approved for around $600K with 20% down. I'd be planning to use a property manager.
Does anyone have an agent that could send me a list of investments with their potential rental incomes so I can run the numbers and see if this is a viable idea?
Is this a viable idea?
Please let me know your thoughts! Would love to hear back.
@Account Closed I think that is very doable. I think you can even manage to get a little cash flow as well.
I would suggest getting 2 single family homes for around 250k each. Depending on the exact location you get get$1600-$1800/mo for rent.
The mortgage rates for this is now around 5% so your mortgage payment would be around $1100/mo then add about $300 for taxes, insurance, etc. And 10% of rent for management. So you might end up with about $100-$200 cashflow on each property.
There is alway a little work needed for tenants to move in (unless you buy new construction). But if you work with good realtor and property manage, they will take care of you.
Thanks for the advice @Jiri B. ! Do you know of any realtors that you can connect me with that have a list of properties worth checking out?
@Account Closed the inventory moves pretty fast, especially for move in ready homes. If you are in Raleigh right now, you should check out some of the investment meet up groups. There are plenty of realtors attending those to grab potential clients.
The list / search would really just depend on your specific criteria. Eg. do you want 4 townhomes, condos, 1 sfh or 3 sfhs. etc..
The option i suggested is what i normally do and what seem to work pretty well for me in this market but everyone has different goals and strategies.
I'm a realtor my self, although i mainly focus on my own deals and properties. We all have access to the same MLS database..
Hi @Account Closed - Welcome to BP! I just sent you a PM to see how I can help you out.