Hey BP family. Anyone investing in the Henderson, NC area? Received calls from 3 sellers in Henderson who got my info by word of mouth. Any input about this will be helpful.
Hi @Tedroy Johnson - My wife works in the public service sector up that way and states the economy is very grim and does not have many job opportunities. Plus you're getting farther away from the strong university system that the Triangle has. I see a lot of opportunities come across my screen up that way but don't see the economy improving in Henderson, so I stay away.
I think Henderson has tons of potential. I've met with many landlords who have been enjoying big fat cash flows for 20+ years from that town. If you're investing for cash flow, the numbers make sense. The property prices are very low, but the rental rates are still pretty strong. I wouldn't try to fix and flip anything in that town though. If you're not scared of low-income and Section 8 vouchers, which I'm not, then Henderson (and the thousands of towns in America like it) has literally a cornucopia of opportunity. I met with one guy who has 16 units there, SFRs and duplexes, and in 19 years of land lording he's never had more than "a week or two" of vacancy on any one unit. Look, people are either in favor of low income and section 8 or they are not. Personally, since most of my mentors are big fans of it, I am big fan as well. It is true that your properties will experience a little more wear and tear, but for the prices you can buy them, and the "guaranteed" rent checks from the government, I think it's all worth it. Another thing to point out about section 8, is that once a tenant loses their status with the government is extremely difficult to get it back, so any tenant who has had the section 8 voucher for a while knows how to treat properties and landlords so that they keep it. But this is not a forum about the pros and cons of low income housing, BP probably has tons of articles about that already. I actually just picked up a 9000 square-foot building there that will be converted into 10 apartments over the next several months. I'll keep you posted about how it is going with the renovation and the rental phase if you want. Feel free to reach out to me about that or the sellers that you have looking to sell there too. My partners and I may be interested. I am an NC licensed broker too, so if you want me to use my RealtorPowers and help you research any of those or other properties, reach out to me anytime. Brandon AT associated housing dot com.
I have some property in Henderson, I agree with what Brandon says. It's a unique market there - most people in town are permanent renters. They will never own a home, even though they are available for very low prices. Yeah, they can be trouble, but if you don't own a slum then there are quality tenants to be found. Section 8 is a big, big thing here. There are several 50+ unit apartments that cater entirely to section 8.
I have a friend who has done very well being a landlord here for 30 years. No major war stories. No major vacancies, ever.
I'm currently building some new units, they need to be finished cheaply and with durable finishes.
Henderson is very neighborhood specific. Some areas are VERY bad and property worth next to nothing. Rents are very low, crime very high. Bullet holes easy to find. Just a few miles away you will find millionaire's in mansions. Not much middle class.
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