Redmond, WA · Member since 2017 · 134 posts · 65 votes
Hi folks, I've been hearing a lot about Apex, NC being a good rental investment property. "d like to purchase a $200-230K house (preferably 0-3 yrs old) and rent it out. I live in Seattle, WA so won't be in person to manage it. Thoughts? What kind of rent can I expect? I don't plan on having Property mgmt as I don't for my other properties in TX and it's working out fine.
Raleigh, NC · Member since 2017 · 8 posts · 5 votes
8y
Vikram,
I own a rental property in Apex, NC and live in the triangle area. Its pretty difficult to find a good deal at the moment and most houses are going for over ask as the market is so hot. It really depends on what you are looking for if you are looking for great cash flow its probably going to be tough but if your looking at something like appreciation the market is pretty decent for that as the area continues to grow. Honestly, there is probably other more favorable markets out there. Personally I have had to look out of the area to find decent deals.
Raleigh, NC · Member since 2017 · 8 posts · 5 votes
8y
Vikram,
I own a rental property in Apex, NC and live in the triangle area. Its pretty difficult to find a good deal at the moment and most houses are going for over ask as the market is so hot. It really depends on what you are looking for if you are looking for great cash flow its probably going to be tough but if your looking at something like appreciation the market is pretty decent for that as the area continues to grow. Honestly, there is probably other more favorable markets out there. Personally I have had to look out of the area to find decent deals.
Redmond, WA · Member since 2017 · 134 posts · 65 votes
8y
Thanks Thomas! Of course, as investors, we'd all like positive cash flow from day one. But my main goals (for now) are appreciation and eventual positive cash flow. As long as there is no significant negative cash flow (like say, over $250/300 a month), I'm ok.
You said you had to look "out of the area" - did you mean areas other than Apex, Cary, Holly Spring, etc. or outside the Raleigh/Triangle area itself?
If you're wondering why I, a Seattle resident chose NC: I believe in the idea of rental investments, but due to both time commitments (and I'm probably a chicken!), I follow the "tried and tested" versus researching a brand new market myself. I bought a rental in Austin following my cousins' several rental investments there, and this time chose the Raleigh area because my Seattle buddy and his sister both bought rentals 2 years ago and are happy (~$150 to 200 cash flow per month). I've read other hot rental investment markets on this forum like Indianapolis, etc. but don't know of anyone who's personally invested, and hence don't feel comfy proceeding in that path.
Raleigh, NC · Member since 2017 · 8 posts · 5 votes
8y
Hi Vikram,
Outside of the triangle in general. To give you a little prospective I bought my property (leveraged) in Apex a few years ago for a decent price and cash flow is around 200-300 a month after expenses. However keep in mind I manage myself and do most repairs myself which helps out. If you have a lot of repairs and capital expenditures it could push you into the red. However the triangle area is a solid market and has been appreciating on 3-4% a year. If the economy heads south I think Raleigh has better stability then others.
Charlotte, NC · Member since 2017 · 6 posts · 3 votes
8y
I lived all of my life until a couple months ago on the Cary Apex border and I personally think that fuquay varina is the best place right now. If your looking for cash flow there would probably be even better places than that though away from the RTP area. My mother does hold a number of properties in the holly springs fuquay area but she purchased them before the market lit on fire I personally would look towards the charlotte university area because the returns there are promising and there is a strong rental market. Houses in my current neighborhood that are 3 bed 3 bath that cost around 175k can demand around 1300 a month in rent which is decent. Also there is a major commuter train that goes through charlotte that is about to open in the spring that from what i had heard when i was in real estate school down there should bring solid appreciation to the area.
Investor · Southport, NC · Member since 2017 · 38 posts · 26 votes
8y
Thanks for the info from everybody here. I'm considering moving our family down to that area. Good to hear what is going on as investors. Let me know if anyone out there has a good rental option for us to rent for about 6-12 months before we buy ourselves. We've heard great things about the Holly Springs, Cary, Apex area for families. Likely to move in the Summer/early Fall. Thanks in advance.
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Vik J. It would be virtually impossible to find a single family home that new in Holly Springs or Apex in the price range. Are you also looking at townhomes? You might be able to swing that in a town home, but the communities often have limits on how many can be sold to investors, if any.
If you are ok with an older home, you can find some single family inventory. You can expect to get about $1300-1400/month in rent for a home that price in Apex or Holly Springs.
Redmond, WA · Member since 2017 · 134 posts · 65 votes
8y
@ Dawn Brenengen - Dawn, thanks for your response and the insights. Yes, I meant townhomes. In fact, for my price range and "age of the house" criteria, I believe a town home is what I'll mostly end up investing in!
I am aware of the rental cap and investor limits. I'll have to cross my fingers and pray when I reach that point.
By "ok with an older home" - how old were you referring? I was particular about 0-5 years assuming that the maintenance work would be a lesser.
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Vik J. I think a lot of people get hung up on the idea that a new home is less maintenance than an older one, and while that might be true for a few years, most homes start having things break at 8+ years in (sometimes even less), so it wouldn't be long before you are dealing with maintenance calls for a newer home as well. I don't really care how old a home is as long as it's well maintained, and it doesn't have health issues like lead paint or asbestos.
Click Here to View Listings - This is everything in MLS in Holly Springs or Apex under 230k, built in the last 5 years (it's all 2018). So, you can see the options will be limited!
Thanks very much! I love this community, everyone's so helpful! :) Funnily enough, I had my eyes on the Salem Creek drive town home. What are your thoughts?
Cary, NC · Member since 2017 · 46 posts · 14 votes
8y
Very tough market in West raleigh (Cary,Apex,Holly Springs)
Be prepared to act fast and fight off multiple all cash offers.
I would imagine even harder from a distance with limited knowledge of the area.
The townhomes you mention are near downtown apex but almost the edge of walkable. Hard to justify a premium if you don’t get the benefit of a comfortable stroll to Main Street.
Investor · Holly Springs, NC · Member since 2017 · 7 posts · 1 vote
8y
@Vik J. I currently have a single family rental in Holly Springs, NC. Currently there are renters in the home but I plan on putting on the market in April. The list price will be slightly higher than 230K but I still believe you may be interested. I am currently receiving $1500/mo rent. The home was built in 2013. Let me know if you may be interested!
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Vik J. I know Salem Creek doesn't have a limit on investors, so it's possible for you to buy there. Comps for the smaller 1500ish square foot plan are between 1400-1500/month, so I would use $1450 as my estimate when running numbers.
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Vik J. I happen to know the listing agent at the Salem Creek Townhomes, so I sent him a text this evening. He said they are sold out of the smaller, under 230k townhomes.
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Christian Fowler Thanks for the info! It's not quite at a .6% rent to price ratio, and my buyer is looking for .7 or better for the area. Thank you, though!
Sunnyvale, CA · Member since 2017 · 6 posts · 1 vote
8y
I've also been looking at the Cary/Apex area for a while. I almost put in an offer on a property in Holly Springs, but the highway expansion project scared me away - the proposed route for 540 went directly through the property. You can view the map here on Google Maps.
Investor · Holly Springs, NC · Member since 2018 · 16 posts · 4 votes
8y
Hi all, we've been here for 16 plus years. Originally from up north - relocated yankee. My thoughts include - Holly Springs ("the Springs" is a wonderful place to raise the family. Strong schools, great activities (recreations - sports for the kids, library). Recently a number of medical offices have sprung up (Duke Health, REX (affiliated with UNC) etc. all great signs of the pending increase in population. Reason, they must receive approval to build hospitals in area (CON certificate of need). Also, a number of schools have been added or expanded - again in anticipation of the increase in population. All that being said, the market is hot. Add to that the highway expansion (mentioned in another thread) and you can bank on the explosion that is coming our way. A wonderful place to live but as far as rentals, tough to find. Most are being bought, demolished, and them putting newer homes on them.
Fuquay Varina (The Q) is also doing well. Although the next town over, its a little slower to grow. The town council is extremely conservative in granting permission to add businesses, restaurants, and the like. Many of the local business owners sit on the board, they have a vested interest in reducing competition....so I am told. Have not confirmed that. There are more opportunities there. Great upside. Plus its a little closer to the military base (Camp Lejeune) so military families can live there and still get back to base in time if they get the call.
Carrboro, NC · Member since 2015 · 29 posts · 4 votes
8y
@Andrew Laing I moved to chapel hill a year and a half ago after 20 years in SF. we really like there. there is an active RE investment group here...but like others said, deals are tough to find.
Rental Property Investor · Irvine, CA · Member since 2017 · 25 posts · 4 votes
8y
Looking to puchase new Townhomes in Apex area, but need some insight in to the market.
Do you feel there are more investors in this are now Vs actual owners living. What I mean is, are we getting in to situation where lot of investors buying and looking for renters and rents are not really attractive.
Based on what I have heard, 1800 sq.ft Town home with two car garage can get your $1500/- to $1600/-
Is this a hyped market due to Amazon and Apple news?