Good markets in North Carolina for cash flow?

[Marco Aceves]

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! 

[Paul Vail]

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.