What NC city has a stable Multi-family market?

Question

Hello, I’m a newbie investor & determined to purchase  my first multi family property this year. I currently live in High Point, NC & trying to figure out we’re would be the best market to start in, such as Raleigh, Charlotte, Durham & Cary. I’ve been doing research with growth population & it looks like Raleigh leads in that category, but I would like to get some feedback on someone that knows the market well .  I will greatly appreciate it!

Laura Shinkle · Answer

Hi @Gabriel Pais and @Emmett Burton you're both right, the multifamily market here in Charlotte is minimal at best. They really don't build these types of properties here. The ones that are out there are few and far between. Either far out from Charlotte in surrounding towns and needing work or if they are in Charlotte, they won't cash flow like most investors are looking for.

And Emmett, believe me I wish they would build them. However, splitting these buildings into individual townhomes/condos is more profitable than selling as a quadplex. It also makes it more affordable for the everyday buyer looking for a home.

Hope this helps! The single family home market is doable from an investor standpoint, but multifamily is a waste of time here, IMO.

Troy Bailey · Answer

I have not had an issue finding multi family properties in Eastern NC that cash flow. Greenville & New Burn have allot of subdivision that are all duplexes. Outside of Charlotte I have made offers multi's in Salisbury & Hickory. As Caleb mentioned Rocky Mount seems to always have a few as well as the Wilson area.

Chris Martin · Answer

See also this BP post Total Available Market - 2, 3, and 4 units for details on Wake county/Raleigh area.

Emmett Burton · Answer

I don’t know if you’ll find a multifamily such as a duplex here in CLT. I am from Chicago where half the city is duplex/triplex/fourplex. These properties don’t really exist in CLT from what I’ve seen. With so much space, everything within a 10 mile radius of the center of the city are SFH/townhouses/condos. But full disclosure, I don’t really know the CLT market outside of the 10 mile radius in which I live. I don’t understand why developers aren’t building these flats, they would be able to fit more doors on each parcel of land they buy which would also help the housing shortage here.

Gabriel Pais · Answer

Hello Troy, thank you for sharing your valuable knowledge. I actually have been doing some research In Greenville, & that market has a lot of potential because of ECU & the population has been growing every year.  The other areas that you mentioned I’ve never been in, so I have homework to do.

Caleb Heimsoth · Answer

it’s just like any other city.  There’s good and bad parts.  If you were looking on the MLS it’s probably overpriced anyways

Gabriel Pais · Answer

Hey @Laura Yates yea I know the market is fantastic over in Charlotte, I have a few friends that moved there within the past 3 years to , though the only reason I don't want to move in that area is because I'm only looking for a duplex so I can house hack it, because this is my first property that I'm purchasing. :-)

Mr. @Caleb Heimsoth, thank you for sharing your knowledge, about those specific areas, I've been substantial research & the majority of these duplex homes are not in good shape. So I'm assuming that the reasons that the properties wouldn't cash flow, its because of the areas that they are located in?

Caleb Heimsoth · Answer

@Gabriel Pais I see a lot of small multifamily in rocky mount, but that’s just mainly because that’s where I look mostly.  I used to live in Cary and live in Durham now and I would say there’s more multi in Durham.  There’s not a lot in Cary and if you find it, it won’t cash flow

Laura Shinkle · Answer

@Gabriel Pais we don't really have a problem with getting people to move to Charlotte lol...the last statistic I heard was over 100 people a day. And investors are everywhere, with varying levels of experience.  The problem is affordable housing and a single condo is more affordable than a duplex or quadplex. Also there is more profit margins for a developer if they split it up into townhouses versus sell the building as a quad or 5 plex.

Gabriel Pais · Answer

Hello @Laura Yates, I appreciate your feedback in the Charlotte area. It's honestly unfortunate that there is no construction been incentivized for these types of properties, when they have a lot of potential to bring a lot residents & investors to the area.  @Chris Martin,  thank you for the data you just provided, those are extremely insightful numbers that show's how multi-family properties are really low in NC state. I was looking forward to investing in these types of properties here in NC, but after the information you guys shared, I'm going to have to move out of state in the near future & find a better market.  Thank you so much!

What NC city has a stable Multi-family market?

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