Hello, I am interest in purchasing an investment/rental property in North Carolina. What are the best neighborhoods in Charlotte, Durham, and Raleigh to look into?
Best for what? Purchase price? Cash flow? Appreciation? Schools? Commute time? Traffic? Safety?
You need to define what your business model is before anyone can answer your question
Thanks Andrew for the feedback. Specifically for cash flow.
How much cashflow are you looking for? Single family/townhomes/multifamily properties? Are you willing to do remodel work or do you need turnkey properties?
@Laura Yates this will be my first deal so I am look to break into the Market. I am looking for a single family with at least 2 bedrooms that needs little to no work.
Well as far as neighborhoods go, it depends on your price range and comfort level for classes of neighborhoods. University/Northlake is good because there is a steady stream of tenants and the average price is a little lower. Southend/Southpark areas are of course very popular neighborhoods so tenants would be easy there as well. Wesley Heights and the surrounding neighborhoods on the west side of Charlotte are a little more transitional but up-and-coming. Steele Creek is also a little more affordable and a good location IMO.
If you are looking on-market for a 2/1 that requires little to no work, you may not find anything in Raleigh or even Wake County. Some of the proximate counties (Johnston, Cumberland, Lee, Chatham, Nash, Wilson, etc.) may have something more in line. Each neighborhood has its own unique features, pros and cons and whether something is a "pro" or "con" is more subjective than objective depending on each investor. Are you local to the area? If so I would suggest hopping in a car and exploring!
I buy condos in Winston-Salem in zip code 27104. Just got one for $60000. HOA dues are $165, rent is $815, insurance is $20, manager I pay is $70, taxes are $55. I paid cash so I am getting net around 10% cash flow= $505/month net. I love condos. Most people hate condos. By the way the whole purchase price is depreciable. (not so with houses.) I saw one lately listing for $35000 and there is a tenant paying $650. You could buy it, say you could pay $33000, put 25% down ($8250) and have the seller pay the (ballpark) $1000 closing.
Most of the bs I have heard over my 30 years about investing in condos is bs. They have all appreciated at the same percentage rate as the surrounding houses. The zip code is in an established neighborhood. May favorite condo I put down $2000 and another $2000 I put on a credit card. I just started paying in the existing loan of $232 a month. Rented for $800. I love that people hate condos. Leaves more for me.
@Tiffany Alexy would be a great contact for Raleigh/Durham
Thank you @Brian Corbett !!
@Virginia Lyons , what cash flow numbers are you trying to hit? Raleigh has gotten pretty expensive these last 3-5 years but it's all relative still. If you go further out on areas outlying Raleigh (ie Garner, Clayton, Knightdale) you may get a better yield versus paying a premium to be in Raleigh proper. These cities are only 15-20 minutes from downtown Raleigh so they're rapidly growing in popularity.
I have an agent on my team that covers Durham, from what I understand it's even more competitive in Durham than in Raleigh.
When you talk about competitiveness and competition in RDU, ya'll are right, its high. Some say home prices are high, I think they are where they need to be on the way up.
I would definitely look into Garner/Fuquay/Clayton maybe west of Raleigh and past Wake Forest. Those cities are on the come up.
We have a rental property near Matthews, NC but still in Charlotte city limits. I agree with Laura's neighborhood recommendations. Once you find something you like and the numbers work, be prepared to act quickly. Good cashflowing properties go really fast. I've lost a couple properties from waiting too long and over analyzing when I knew it was a good deal.
@Virginia Lyons I invest specifically in Rocky Mount NC, which is about 60 minutes east of Raleigh. The cash flow numbers are incredible, but you have to understand what you’re buying. I can’t imagine buying there from a distance, but if you live nearby or can drive there it’s a good market I think.
Looking to get started in Rocky Mount area. Ultimate goal is rentals, starting with trailer flips, note holding.
@Caleb Heimsoth can you describe one of your newer acquisitions to me to get an idea of the types of deals available in Rocky Mount.
Are you using a PM for the units?