Investing outside the Triangle

[Haley Mize]

I’m very interested in learning more about the small towns and surrounding areas outside of Raleigh. I’ve noticed a lot of investors targeting markets like Fayetteville, Spring Lake, Roseboro, Mebane, and Louisburg.

One thing I’ve noticed is that finding properties outside the Triangle at below-market prices can make it much easier to create affordable opportunities for first-time homebuyers, which also seems to help flips sell faster. The same trend appears to apply to rental properties as well.

Beyond affordability, what other reasons are driving investors and buyers to areas outside the Triangle? Also, what other towns are people showing strong interest in that still offer a reasonable commute for those working in the Triangle?

[Pat Lulewicz]

I'd categorize Fayetteville as its own MSA, instead of a submarket of Raleigh. Has its own employment, life style, etc. and Spring Lake falling as a sub of Fayetteville. In other words, I wouldn't analyze those 2 based on Raleigh stats like employment, demographics, etc.

The other markets you mentioned are definitely more affordable and can make it possible to build a portfolio that has some cash flow, which is why I like to invest in the Triad over the Triangle; still get economics that work while also having growth upside.

I think when you look at the smaller areas your mentioned like Louisburg and Mebane, and then looking out to Sanford, Zebulon, Pittsboro, Franklinton, etc - those end consumers (buyer or renter) are looking at lifestyle preference. They want land and quiet, and sacrifice some commute (if they even need to - i.e. remote jobs or retired) to get that.