What's happening in the Triangle?
Anyone hear or see what is happening in the Raleigh/Durham and surrounding areas? Companies are flooding the area and creating jobs and an increased need for housing. Apple, Google & Meta are just a few to name. If you are already investing in the area, has this changed your strategy? And if you are just starting to invest in the area or looking to get started, how does this impact what you will do to get started?
Hi Katherine! I have three properties in Raleigh (2 short-term, 1 long-term) and this has definitely changed my strategy. I felt I was getting outpriced so I started buying out of state in Jacksonville, FL last year. However, now I have decided to revert back to RTP and focus on short-term rentals and mid-term rentals. My units in Raleigh are performing WAY better than expected so now I am in the process of trying to put ADU's on existing properties and buy 1-3 more homes in Raleigh, Garner, or Durham this year with big enough lots to potentially put an ADU on them.
So glad to hear how well your properties are performing! And adding the ADU's when using it for a rental is always a great use of space! Look forward to connecting and hearing more about your future investments.
I have been trying for 12 years to put an ADU or split a lot and develop in Garner. Should I ask 'Good luck to you' or do you know something I don't? From the Garner website regarding Accessory Structures:
A building on the same lot, but detached from the principal building, for which the use is incidental and subordinate to the principal use. In residential districts, accessory buildings may be detached garages, workshops, storage sheds, hobby-type greenhouses or similar minor buildings (roofed structures).
Not ADU like in "habitable".
@Katherine Serrell have you talked recently to the Garner Planning department about your ADU ambitions? I'd like to know what you are doing differently that makes you confident in a Garner ADU possibility. Have their rules changed recently? I've been 'shovel ready' for 11 years. I'm all ears.
@Chris Martin ADU's don't have to be detached. If I were to purchase in Garner I would likely finish a garage, attic, add on to the existing dwelling, etc. Garner would be my last choice since I would prefer to have a detached ADU but if the right one popped up I would try to go that route. Definitely not "confident" nor do I pretend to be, even if any of the municipalities state ADU's permittable, since they ultimately have room to be subjective and I don't want to go in circles for months or years with them. I know Durham's planning department is 6-12 months out with permits right now so Raleigh is my first choice but comes with its own set of challenges and the lots tend to be smaller.
Hi @Katherine Sommer! All the exciting news has not changed my personal strategy much. I will say it has made me slightly more flexible on what I will accept for day-1 cash flow numbers knowing that rents have a strong probability of increasing YOY. It certainly makes deals harder to come by, and it can be hard to stay committed to my deal analysis metrics when deals come in go in a matter of minutes. It also validates my feeling that the triangle housing market boom is not a "bubble," and will see sustained growth in the coming years. Raleigh is an exciting place to be right now!