Single Family Home Investment in Raleigh, NC

[Shaum K.]

My wife and I invested in a multifamily syndication 270 unit in Raleigh last year, which was our first experience in REI. From an active investment perspective, we're thinking that buying a home in Raleigh could be a better cashflowing investment due to the lower prices compared to the DC area where we live. My wife grew up in NC and we have friends who have lived there and liked it or family/friends who live there now, her parents live in NC too so could help us with the home if necessary. From my read of the forums it does seem Raleigh/Cary/Durham it will be hard to find properties that cashflow since it'a sellers market. What advice would you give to us? It's either this or more passive investments in syndications with decent COC returns at least for the short term.

Thank you for taking the time to respond in advance!

[Ryan Daigle]

Hi @Shaum K.. I believe we've invested in the same syndication! I live in the area and was happy to get a piece of something in my area I could drive to.

If your priority is cash flow then it's going to be very hard to find anything that compares to what you're getting in the syndication (around 8%). This area has just had too much appreciation recently to get that kind of cash flow unless you're looking to do a heavy lift like a wholesale purchase and rehab.

Something else you might consider is being a hard money source for flippers in the Raleigh area. You provide the loan at 12%+ to the folks on the ground doing the heavy lifting. Less risk and time involvement for you, though I'm not sure how much capital you have access to.

Hope that helps!