General Discusson About Fayetteville, NC

32 Replies

Hello BPers. I wanted to start a new topic for Fayetteville, NC. I was hoping to make some connections with some other investors who were interested in, or familiar with Fayetteville, NC. I am looking for my next deal and one of the areas I was considering looking into was the North Point area. This is generally the area which is bordered to the north by 295, the east by Ramsey St, to the west by 210, and BUS 401 to the south. 210 and Ramsey sort of form a “V” shape to the south and Country Club Dr. cuts through the middle (W to E).

I have recently found several homes in this area which meet my criteria but they move quickly and I have not been able to get one of them as of yet. Have any of you looked into this area? What are your thoughts? Experiences?

Do any of you have any other areas you are interested in, or actively buying in?

Finally if there is anything else Fayetteville related you guys would like to add to this please feel free.

I only invest in Fayetteville. Buy and Hold

great area, I have a few in your highlighted area, and a few outside that.

As you said, homes in Fayetteville go quickly, they are cheap and lots of competition. Unfortunately this has ramped up over the last few years and deals are definitely getting tighter, still lots of room for profit, but you gotta move diligently when you find something good.

@Alexander Felice how has that neighborhood panned out for you? I dont own anything in that area but I am looking for something there. Most of what I see is under contract in about 3-5 days. Have you seen this as well? 

There are a few that hang around quite a bit longer but they are not priced right, or have more issues than I am capable of dealing with at the moment.

I'm not too picky in Fayetteville. Between my partner and I we own ~40 something units and manage quit a bit more. There are certain areas we won't buy in: Murchison road, FSU and some area's we just don't: spring lake, far west in Raeford. West of Fayetteville is great and a not as competitive. Directly south of town and jack britt are most competitive, but not necessarily better deals. Hope mills has pockets of greatness. Really the area isn't the most important part when buying in Fayetteville. This post right here might be the most detailed I've ever talked about it in fact ;)

as for timelines: if you want to get a great deal, I recommend moving very quickly. I try to have my bids in on deals I like well within 12 hours of it coming on market. I also constantly look at the 45+ lists to see what other investors miss. Also, pay attention to deals that come back on market after falling off. I find that the houses in most disrepair are the ones I do best on. It's plenty easy to buy a house that's move-in ready and you'll face the stiffest compeitition and the highest prices. If you can find houses with weed growing through the walls like I buy, there is more opportunity cuz most people get scared off ;)

@Alexander Felice I could not agree more with moving quickly. I also agree with you on the areas, the Murk, Bonnie Doone, FSU area are not places I am interested in. I will say that Fayetteville in general has improved significantly over the years. I first landed there in 91 and have seen some changes. Some areas that had been decent in the past have declined over the years, Hope Mills is also an area I am interested in. I think Jack Britt is probably the best area for schools, even though the public school system in Fayetteville is in a very sad state. I am in the Rockfish area and I think that is a decent area but the "deals" are getting tougher to find.

Do you manage all your properties? or do you have a PM in the Fayetteville area? I use a PM for my NC property. 

Hello I am in my first year of being an investor. So far I only have two homes in VA that I own. I am looking to expand to areas near military bases like Bragg.

I was looking today on one website and found over 400 houses under 100k. I also notice there were over 30 homes for rent in the west side of Fayetteville. Should that be a concern that there are so many homes for rent in the area? 

@Kenneth Stump I dont think that is an issue. Homes are always for rent in Fayetteville. I think the large dispora of military people will always provide a large population of renters. Many people coming into Ft. Bragg do not want to buy in that area since they will probably be moving on in a couple years time. To some the hassle of home ownership is not something they want to deal with. The Basic Allowance for Housing (BAH) which is basically a stipend the military pays to service members to cover the cost of housing generally covers the rent and often times utilities and military folks are willing to use that to cover rent. 

There are other people in the area who also just can not afford to buy for various reasons and have the choice of living in a mobile home or renting a reasonable SFR in the area.

Bottom line I would not be concerned about the amount of rentals, just have a solid property at a competitive price and I think you will be OK.

@Paul Schu thanks for the info. I am prior Army so I understand the BAH and the military life, that is one reason I am looking to invest around military bases. 

@Kenneth Stump I like investing near military bases as well. Have you looked around any other bases? I like Fayetteville because I am (was) familair with most of the areas/neighborhoods. If you have not been in Fayetteville lately take into consideration the new 295. I think that is a game changer for Fayetteville. 

@paulschu yes I have looked at other bases. One of my properties is next to Fort Lee. I am also looking at Fort Hood I was stationed there for my first duty station and I used to own a house about 20 minutes from the base. 

the new 295 is actually better than I had hopes for. I agree that it will be a large boon for the city.

@Alexander Felice I agree I think it is great as it allows easy access from Fayetteville to 95. Something that used to take me 40 minutes now takes about 15. Once it is complete it should make getting to 95 a breeze from most parts of Fay, especially the Lake Rim/Raeford area.

I live in the Fayetteville area and I would not worry about there being lots of rentals on the market. The on post housing is not that good which drives a lot of the soldiers to off post rentals. New soldiers show up everyday and need a place to rent. Just make sure the house is acceptable and you'll find a tenant.

@Matt Greer I agree the constant influx of soldiers defenitely helps the rental market. Do you have any areas your looking to invest in?

I'm a new investor and possibly looking at Fayetteville for buy & hold. Seems like there are still deals available with decent numbers unlike some of the larger metro areas in the area.

The only thing that worries me is vacancies / occupancy. Just ran a quick search and Fayetteville, NC seems to rank at or near the top when it comes to the rental vacancy rates in NC.

http://www.civicdashboards.com/city/fayetteville-n...

Could anyone comment on that or is that something you simply factor into your numbers before going into a deal?

Since that data doesn't include 2016, 2017 or 2018 I'm looking into whether that vacancy rate trend has continued to increase. This article is old so it's not that relevant, but I think the general principles might still remain true? I'm curious to see people's hypothesis/will be watching this post. I've also asked a couple people I know that worked at Fort Bragg.

https://www.newsobserver.com/news/local/article10059008.html

Hi Team,

New investor here. I am active duty military moving to Fort Bragg area in mid September. I'll be looking for MFHs (buy and hold for at least $100 cash flow) and lower priced fix and flips (8-10% cap rate) by the end of the year. If anyone is interested I'd be happy to meet you over a coffee to discuss the market and future possibilities. Does anyone know of an active REIA there?

Thanks,

Dan 

vacancy has been a non-issue for me and my team. I can't remember any time in the last 5 years that I've had a vacancy more than ~10 days TOPS.

the last few properties I've rehabbed we had tenants lined up for before the work was even complete.

when I moved to Vegas and left my primary to be a rental. As I was pulling off to leave, the new tenant was there waiting for me to go.

Finding great deals in this town is far harder than keeping tenants placed.

@Tim Uittenbroek and @Julia Rockwell I am not sure the data is completely accurate. I am sure at any given time there is a plethora of available units. I know there have been numerous recent apartment projects completed in the past 6-7 years which likely contributes to the available units. I can remeber in the early 90's even apartments were always available. 

I personally have not expirienced a vacancy of more than 2 days in the past 7 years. I think like anywhere if you have a nice home at a competitve price then you will be OK. Neighborhood also plays a factor as well. There are some neighborhoods that probably just dont rent well due to the demographics in those neighborhoods. We have mentioned a couple of them above. 

@Daniel Weidman I would say, "good luck" finding the Multi Family units. I am not saying they do not exist but they are a bit difficult to find. I think with the high level of investors active in Fayetteville and the recent attention the multi family units have been getting lately only compounds the problem of finding them. 

If you see some that have been on the market for a while then there is probably a reason they are hanging around. 

I would like to chime in here if I may.

I recently purchased 3 sfh in Fayetteville; closing were in April, May and July. After my rehabs they all rented out approx. 1-2weeks(except1) - market rents

These were located off Bingham rd, in southgate, and off Graham/Strickland rd. 

Southgate was the longest to rent , Graham/Strickland (jack britt) easy, Bingham was real easy but took the longest to rehab with two baths gutted and new flooring throughout and cabinets.

Market rents were $950(2) and $850

If you have the right property management with good rehab and not that shady crab people do like cleaning a 5 yr old carpet or put rolled vinyl in living area (stupid) and lipstick the heck out of it then it will be occupied. 

All 3 of mine are in different classes of neighborhoods (no war zones) two different school districts and no problems

Looking at three others right now

Thanks rob

I would like to chime in here if I may.

I recently purchased 3 sfh in Fayetteville; closing were in April, May and July. After my rehabs they all rented out approx. 1-2weeks(except1) - market rents

These were located off Bingham rd, in southgate, and off Graham/Strickland rd. 

Southgate was the longest to rent , Graham/Strickland (jack britt) easy, Bingham was real easy but took the longest to rehab with two baths gutted and new flooring throughout and cabinets.

Market rents were $950(2) and $850

If you have the right property management with good rehab and not that shady crab people do like cleaning a 5 yr old carpet or put rolled vinyl in living area (stupid) and lipstick the heck out of it then it will be occupied. 

All 3 of mine are in different classes of neighborhoods (no war zones) two different school districts and no problems

Looking at three others right now

Thanks rob

I actually have 2 deals in fayetteville I'd be willing to wholesale

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