Given the recent companies opening new offices into this area got my attention. However I am not even too sure which area to begin with. I realized that property taxes are different.
Ideally I am looking for buying and holding it long term. Rather than renovating and flipping it. While doing that I wouldn't mind if the property has some cash flow and potential to appreciate in the long term (if more high paying jobs increase?)
So if possible, could anyone please give me differences between those two areas, and the potential future of them?
Also I'll be doing out of state investment; so it'd be also good if you could recommend me some realtors to help me do some research in the area.
Property Manager · Raleigh/Durham NC · Member since 2015 · 210 posts · 293 votes
5y
@Sarp Ka South Durham (Carpenter-Fletcher, Woodlake, Woodcroft and even Hope Valley Farms) are excellent A-B class high appreciation neighborhoods with rental rates that are currently sky rocking. Centrally located it has commutable access to Duke (41K employees) UNC, IQVIA, Cisco, SAS, IBM, Lenovo all w/ 5K plus employees. There is more appreciation upside in Durham than there is in Raleigh and Durham is more commutable to RTP than Raleigh.
Rented out an SFH in Emory Woods Estates neighborhood this week for what I would consider an aspirational rental price and was flooded with out-of-state applications (NY, NJ, MA, CA) many were Residents at Duke. The lease was signed within 48 hours of posting.
Feel free to DM me if you have any questions on a property.
Raleigh, NC · Member since 2019 · 57 posts · 54 votes
5y
Hey Sarp,
Both Raleigh and Durham in my opinion will offer good appreciation over the next few years. The announcement of Apple bringing 3K jobs to RTP is good news for the area and will likely have a ripple effect with smaller tech companies following suit. RTP is the largest research park in the US so this serves as a good magnet for attracting new companies.
Good cash flow will be hard but not impossible to come by for both areas. Right now most properties are selling within 24 hours with multiple offers above listing, many times to out of state buyers making all cash offers. You may want to consider some of the surrounding cities such as Cary, Apex, Holly Springs, Mooresville, Wake Forest, Rolesville, and Knightdale. They're all short drives to Raleigh and Durham, many people who work in RDU live in these surrounding towns and commute to work. They're all growing pretty rapidly with new commercial and residential developments going up.
I have a good agent who I work with, he works with a number of investors and also invests himself, he's very knowledgeable of the area, I'll message you his contact info.
I am not necessarily interested with good cash flow; I just don't want a place that doesn't get rented out for a long time; or a place where I'd have a negative cash flow.
Rental Property Investor · Cary, NC · Member since 2019 · 55 posts · 57 votes
5y
@Chad Gray - great feedback. Two [2] notes: (1) Did you mean Morrisville or Mooresville (near Charlotte) (2) I'm an investor here in Cary, and the market here is HOT. The only properties that have made sense to me over the last 3-6 months have been off-market deals. Off-market properties are not impossible to find, but they do oftentimes require a lot of rehab.
And, the property values in Cary has been exploding recently as well.
I'm a huge advocate for investing in Cary, but know going into it: Cary is not cheap and investing for cash flow is difficult...but finding a renter is not a problem here.
Rental Property Investor · San Francisco, CA · Member since 2020 · 18 posts · 7 votes
5y
@Chad Gray - thank you for the info. I’m also interested in investing in the area and connecting with a solid local professional. Could you PM me his/her contact info?
Property Manager · Raleigh/Durham NC · Member since 2015 · 210 posts · 293 votes
5y
@Sarp Ka South Durham (Carpenter-Fletcher, Woodlake, Woodcroft and even Hope Valley Farms) are excellent A-B class high appreciation neighborhoods with rental rates that are currently sky rocking. Centrally located it has commutable access to Duke (41K employees) UNC, IQVIA, Cisco, SAS, IBM, Lenovo all w/ 5K plus employees. There is more appreciation upside in Durham than there is in Raleigh and Durham is more commutable to RTP than Raleigh.
Rented out an SFH in Emory Woods Estates neighborhood this week for what I would consider an aspirational rental price and was flooded with out-of-state applications (NY, NJ, MA, CA) many were Residents at Duke. The lease was signed within 48 hours of posting.
Feel free to DM me if you have any questions on a property.
Investor · Holly Springs, NC · Member since 2015 · 47 posts · 12 votes
5y
@Chad Gray@Scott Ashworth@Ash Fields - I would really appreciate if you are able to connect me with your realtor and/or wholesaler in RTP area. Thanks in advance.
Investor · NC · Member since 2017 · 10 posts · 3 votes
5y
Hello, In July, I will be moving to Chapel Hill and looking to do a 1031 exchange of investment properties I have in the SF bay area with properties in southwest Durham. Based on everything I read, it seems like appreciation is not an issue, but I'm interested to know what type of positive cash flow I can expect to get? I'm thinking about getting newer construction, maybe townhouses, since it will require minimal maintenance and have the added benefit of amenities like a pool, etc. It also possibly easier to purchase since it is less competitive than existing houses that sell over the asking price.
Property Manager · Wake Forest, NC · Member since 2015 · 84 posts · 56 votes
5y
@Tomer Maoz great question. I think you’ve out your finger on the challenge of 1031 exchanges into this market. I agreed that new town homes would be one of the best ways to do that. There are quite a few new developments in south Durham and in Raleigh. You may also look at the Clayton / Garner markets. With Amazon announcing their new distribution center in Smithfield these markets have good upside and aren’t too hot yet. I have investment in Wake Forest and Youngsville but have helped other investors land deals in these markets.
Durham, NC · Member since 2021 · 10 posts · 9 votes
5y
In my opinion, Durham should be the better investment. It is a little less developed than Raleigh (has more land to put homes on), has what seems to be older homes and less "nice" areas that are up-and-coming. Additionally, it is closer to RTP which allows access to all these new tech companies coming to the area.
Investor · San Jose, CA · Member since 2021 · 78 posts · 35 votes
5y
I am also debating the same on which neighborhoods are high appreciating as of today ?I talked to few locals ,it sounds like Cary,Morrisville,Apex Hollis spring are affluent with good schools (Apex friendly high school was quoted )and entry point price is higher ,I was suggested to look into booming areas like knightdale and also explore Durham areas near to RTP?any existing investors who can share thoughts on this ?which neighborhoods would you do a buy and hold investment ?
I was also speaking to a property manager today who said townhouse and SFH are appreciating at the same price and better to invest in townhouse for out of state investors as HOA can help in maintenance of lawn,roof etc , overall less maintenance, however it's goes against my investing principles of investing in SFH for long term appreciation ,what is your take on this ?