question related to rental demand for buy and hold in clayton NC,

[Vijay Nidumolu]

Dear all,

My realtor really likes Clayton NC and its neighborboods for buying a relatively new property and renting it out there. I am not sure of the sustainable rental demand in Clayton area, as there is really lot of new construction going on there. 

May I know if anyone has recently rented in Clayton, or has good/bad experience holding rental in Clayton Nc ? Is  fayetteville NC, saturated when it comes to finding tenents who can pay ~1500$ rentals.

Any insights about outskirts of RDU are very helpful. We have a rental in hollysprings. But ,it appears prices have appreciated a lot to buy there and get decent returns there. Also I noticed that there is less supply of 1~5 year old homes in hollysprings or fuquay varina.

one of my friends advised me that greensboro, high point NC are going to be like RTP in future . Please comment on the same.

thanks and regards

vijay 

[Dan DiFilippo]

I don't know quite so much about the Clayton area.  I've been there a couple of times, but that's it.  Homes values appear to be mid-range for the greater area.  And it appears to be a play on Raleigh.  So I guess that's good.

Here in Fayetteville, we don't have rents around $1,500. Not at the investment level, anyway. But I presume that we have a lower price/rent ratio. For example, you can find SFR's on the MLS that are meeting the 1% rule (or better) around the $100,000 line. And if you're interested in forced equity, you can lower your cost basis and really rock and roll (although those margins are becoming more compressed every day).

Broadly, though, I like Fayetteville.  In these uncertain economic times, it may be the largest fixed economy in the country.  That is to say its primary employer, the US government, will not be going out of business anytime soon.  And if it does, well you know the saying: the government will bankrupt the entire country before it goes insolvent.