I'm curious to hear what some of you would think in this situation. My husband and I invest in NC. We've been watching this neighborhood that is in a good area however almost the entire neighborhood is for rent and a lot are going into foreclosure. The "deals" are there but we've been wary of purchasing because of how empty it seems to be. We can't decide if it's just the downside of the market bubble because all of them went for about $40-50,000 more than they're up for now or if there's a bigger underlying problem we're not seeing.
What are your thoughts on buying at a good price but there being a possibility it won't get rented? It's definitely not a flip situation and my husband and I prefer buy and hold for passive income purposes.
Or, what are the red flags out there in this situation that I may not be seeing?
Thanks for the advice!
Having a lot of unfilled rentals around is a red flag to me. Perhaps they are asking too much for rent, but there may be something bigger happening.
Do your research, if you are not confident you can get a certain rent and keep your vacancy around 10% or less, you may want to pass.
Best of success!
If I were you I would take a look at what the homes were selling for at the peak of the market to get a feel for the appreciation potential , seems to me like this would be a great buy and hold opportunity.
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