Good markets in North Carolina for cash flow?

Question

Hello all,

My wife and I have finally gotten all of our ducks in a row (finances, credit, capital) and we are ready to take a dive into our first property. We live in Raleigh NC and its near impossible to find a property that would sell under market value. We want to do the BRRRR method but we might have to get financing from the beginning. We have just above 100k available to us so unless we can find a property around 50-60k, we wouldn't be able to pay cash without leaving us with little to no money for rehab/holding costs/any unexpected issues.

I have been looking around areas I'm familiar with. (Greenville NC, Asheville, Charlotte area, Durham, Burlington, etc.) and might have found some potential in Greenville. We are looking for a mix of cash flow markets and appreciation markets but would like to focus on the former, to help us raise capital for expansion.

If anyone has any knowledge in markets within NC, I would greatly appreciate any and all input!
Also, if there are any investor friendly real estate agents my wife and I would love to connect!

Thanks all,

Happy Holidays!

Shari P. · Answer

@Marco Aceves Fayetteville market. Active Military, retired military, DOD employees= guaranteed paycheck. All of my properties are in Fayetteville bc it’s just too good. Lots of opportunities for BRRR. The market is changing due to massive housing shortages and the C class neighborhoods are turning around! I never buy in crime areas. Great cashflow. There are FB forums for FtBragg investors that offer off market properties and a lot of wholesalers. Good luck!

Paul Vail · Answer

Marco,Like you, I'm just dipping toes in the local Triangle market. Wow, does it feel expensive in areas. However, there may be some opportunities in north and east Durham. Over the last 20 years, the gentrification of areas starting in Trinity Park and now expanding up toward Braggtown and east following the Rt 98 corridor puts a lot of underloved neighborhoods in what seems to be a long-term upward trend. With the remaking of Rt 70 as more of a freeway connector between I-85 and 147 and cleaning up the traffic flow, that whole chunk of Durham might transform further. But those are long-term opportunities for 'buying at the right price', if the remodel can attract the right tenants and working with local law enforcement can continue to put pressure on remaining gang activity.I'm not seeing as much opportunity for significant cash flow in N. Raleigh -- entry pricing is at a premium and valuations smell a little frothy. Can't bank on appreciation. Even the obvious growth areas that straddle the future 540 expansion are on the high side, 'though more affordable than around the established highway. Poole Rd and outer Rock Quarry haven't yet jumped like Garner and Ten-Ten. After years of the Triangle landing on publishers Top Ten lists for work/retirement and the resulting demand outpacing both the developers and the infrastructure, bargains are rare. Building a portfolio of cashflow via BRRR is going to be a slow grind until something upends the market.

Kenneth Jackson · Answer

I second @Paul Vail in that I like the Durham market a lot. I've spent some of my adult life in Raleigh and shifted gears to Durham in the past 4 years. I've been successful buying properties under market value here, forcing equity with updates, and refinancing out to do it again.Many folks here on BP invest in Greenville and Fayetteville and there's a wealth of knowledge for those markets on this forum. Although they might not see the appreciation like Durham, you can find some good cash flow and build a nest egg with the BRRRR strategy. I don't know these markets, but with some time and research you can learn them.With that said, why not have both? Durham gives you the upside of appreciation with the opportunity of cash flow. You may not get the 1% rule now, but in 5 years when there's still a housing shortage, rents have gone up, and your property value has gone up because you're in a desirable area you'll be thanking yourself.Let me know how I can help.

Grant Leonard · Answer

Hello Marco! There are several great markets for rentals in NC. If you are looking to capture cashflow and appreciation I recommend Durham, NC. Durham is in a rapid state of transition and growth. A ton of investors are seeing this and making Durham their primary market for investing. It may be hard to see now but in five years you are going to be wishing you bought more while you had the chance. It looks like there will continue to be a housing shortage in the market and also plenty of properties that need love.

Pat Lulewicz · Answer

Hey Marco - investor and agent in both the Triangle (Raleigh/Durham/CH) and the Triad (Greensboro/HIgh Point/Winston). I do a lot of investment volume in the Triad for folks in the Triangle and out-of-state. Shoot me a message with the criteria and kind of numbers you're looking to achieve; would love to discuss and provide my experiences so far. In addition, I have some hard money lenders I use and recommend regularly who can help you stretch your capital WAY farther.

Joseph Bafia · Answer

Greetings! I’m also in Raleigh and connected to several groups that share stories, meet and invest not only in Raleigh but also surrounding communities. @Shane Lafleur is an investor and agent and may be able to assist. Feel free to reach out and happy to share any connections.

Samuel Paldino · Answer

@Marco Aceves I live in the Greenville area and I’m familiar with the neighborhoods. Please feel free to reach out to me if you have any questions about specific areas.

Shane Lafleur · Answer

@Marco Aceves@Joseph Bafia thank you.I look forward in connecting.We have meetups in Raleigh as well as I am the host of a meetup in Southern Wake. Would love to have you there.. I’ll post on events here on the BP forums.If you are interested in Raleigh or any other markets in NC, I’m with a team that can provide value in other markets like Charlotte, Fayetteville, etc. would be happy to jump on a call and discuss real estate.Messaging you as well.Best! Merry Christmas!

Cameron Braig · Answer

@Marco AcevesWinston Salem has some good entry opportunities. Between QOZ investments, and institutional investments it is certainly trending in the right way. A strong medical presence also helps. Demographic numbers continue to be strong as well. Best of luck as you all get started.

Marco Aceves · Answer

Thank you, Josheph!Id love to connect with you and talk about the Raleigh and our surroundings!