Raleigh-Durham investing from out of state

16 Replies

Hello Raleigh BP members. I live in California and looking to invest in SFR properties out of state. Have been looking into Raleigh-Durham-triangle area. My goal is to start with one SFR/townhouse/condo in a decent area and go from there.

I would be glad to hear any tips from people who are local to the area or have invested there. Also if anyone can recommend local realtors, property managers who are good and trustworthy to oversee rehab and tenant selection and management, lawyers, etc. Looking to build my team. I plan to make a trip to the area in about a month during during the holiday period to take a look at properties, so would be glad to connect with people who know the market. Thanks everyone!

RDU is a great market! There's a lot of job growth and relocation happening right now, so a very strong rental market in addition to the seller's market we're still in.  You'll probably get a taste of that if you start looking here, as there are too many buyers for too little homes on the market.  

Let me know if you have any specific questions about the area and I'll do my best to answer them.

@Daniel Sheftman I’m a part of that job growth having just relocated here myself. So I live in this market, have started attending meetings and will continue to do so. Obviously not an expert but I can give you a bit of insight if you wish.

Also want to note I’m an out of state investor myself, so I can offer that perspective if you want it.

Good luck!

@Caleb Heimsoth , thank you for your response. From your insight and the meetings you attended, would there be a particular area you would recommend looking into? Just for perspective, I plan to cap my first investment around 200k so the very affluent areas would obviously be out of reach. 

I would be very interested hearing your perspective about out of state investing. Could I ask how involved was your process of investing, how much did the RE agents help in all the process (finding properties, negotiating price, arranging inspection, paperwork, legal, etc) or was it mostly work you did on your own? And how much of your time does it consume now?

Cheers! 

I'd love to hear your persepctive on the Raleigh market as well. I am considering that market for SF or MF investments as well and wanted to know some of the investment worthy areas and would probably have to find a good property manager.

I recommend 2 RE agents.  You've already met Tiffany Alexy  (though she politely didn't specify that she's an agent ;-) ).  While I haven't met her in person, she's great online.  :-)  I also recommend @Dawn Brenengen .  I haven't met her in person, either.  But again, she's wonderful online.  :-)  Both are property managers as well.  I'm sure either of them can be of excellent service to you.  :-)  Good luck!

Thanks for tagging me, @Jody Schnurrenberger

I love talking about the Raleigh market, so I'm happy to give you the run down.  This is not a high cash flow market, but I do think it will be a great appreciating market.  My favorite areas are close to NC State University, Holly Springs, Knightdale, E Raleigh inside the beltline, parts of Durham, and Apex, but all for different reasons.  

Hi @Daniel Sheftman . I live in San Francisco and buy SFRs in Raleigh (I'm from the area). Feel free to hit me up if you have any particular questions or need any contacts. I've also seen a lot of good posts by @Dawn Brenengen and @Tiffany Alexy regarding the RDU area. It's definitely a tough time to get in right now, but that doesn't mean you can't find deals! Just have to be patient and diligent. ;) 

@Daniel Sheftman , welcome to RTP! It's a very exciting market to explore because there's a ton of revitalization and new outer-ring development happening simultaneously, and we expect it to stay that way for quite a while. And Wake County has been a great place to call home for 17+ years.

Are you looking for rentals or properties to flip? There are a lot of great areas for both, but they rarely overlap. And if you want new(er) construction, have you considered your budget for HOA/COA dues?

Originally posted by @Dawn Brenengen :

Thanks for tagging me, @Jody Schnurrenberger

I love talking about the Raleigh market, so I'm happy to give you the run down.  This is not a high cash flow market, but I do think it will be a great appreciating market.  My favorite areas are close to NC State University, Holly Springs, Knightdale, E Raleigh inside the beltline, parts of Durham, and Apex, but all for different reasons.  

 what about downtown raleigh. is it worth speculating there esp. with amazon rumours

@Sunny D. I think speculating on amazon would be a huge gamble at this point. I think it’s a Long shot they actually come here.

That being said if you buy in downtown Raleigh you’ll likely still see solid appreciation long term.

another vote for @Dawn Brenengen

I don't live in Raleigh, nor invest there, yet somehow she has found ways to help me in my market (an hour south) over and over again.

If you have this chick in your mix, profitability is inevitable.

@Alexander Felice You make me blush  :)

@Sunny D. Caleb is right that Amazon is not likely to come to Raleigh.  We don't have solid public transportation in place, and I know that is important to the company.  We do have everything else they want, though!

We are a strong contender for Apple!

Downtown Raleigh is doing great, as is many parts of the Triangle.  What price point are you wanting to stay under?  That would drive a lot of my recommendations.  

Originally posted by @Caleb Heimsoth :

Sunny D. I think speculating on amazon would be a huge gamble at this point. I think it’s a Long shot they actually come here.

That being said if you buy in downtown Raleigh you’ll likely still see solid appreciation long term.

Speculation. 

"AMZN still hasn’t announced which lucky city will be the site of its HQ2, but that hasn’t stopped a lot of people from trying to figure it out." That's from a Fortune story a few days ago.  "At the top? Raleigh, North Carolina..."  

Educated guess. That's the word that I think fits better. 

Raleigh has the potential to land AMZN. For those of us who own rental property in Raleigh and vicinity, I would suggest you wait and see before listing property for sale. Other than property you don't want to hold long term, I see no reason to bail out... short term. My view, based on local apartment new construction absorption rates, is that the result of the AMZN decision isn't "baked in" to the recent spikes in rental prices and sales prices. In other words, the rental increases we've experienced in the last 24 months are not "speculation" but based on lack of supply and driven by intrastate migration. 

The only (recent) cases in point I can think of, related to S/D imbalance, are the cities that experienced the fracking/oil boom phenomenon. Out there, rents exploded. Values exploded. I don't think the magnitude will be the same, but to a large degree it's perception that counts. And AMZN is true adrenaline.  The analogous 'market' financial model I fall back on is this: the P/E expansion of a growth company, when the company introduces something 'New' that triggers renewed investment interest. Landing AMZN is a big deal, the 'new' part, and may (perception) trigger new infusion of intrastate or international capital. That may keep the ride going for a while for those of us property owners currently in the local rental market. Raleigh is no Shenzhen, but for locals here for 35 years it may be as close to it as we will probably ever experience. 

Yes I think we're not going to land Amazon but I do think we have a strong shot at Apple - which might be a better fit for the Triangle anyways. Their scale will be less likely to overwhelm the area and they are about as blue chip as you can get.

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