Fayetteville Real Estate and Market Trends

[Lincoln Hancock]

Hi there,

I've been researching investing in some apartment complexes and/or multifamily (single-family homes too, in fact) in Fayetteville, NC. The presence of Fort Bragg there, as well as the affordability of RE in general, is tempting. However, something does not rub the right way. Maybe because I'm based in AZ, and contemplating a move out there? IDK. Anyway, I'd love any and all input on RE market and future outlook of this NC city. Thanks in advance.

[Alexander Felice]

Fayetteville is a decent area to invest, I invest there! 

Sure it has flaws:

ZERO appreciation no matter what anyone tells you, in fact because of the lack of growth above systemic economic increases, you'll find that many houses depreciate as newer homes are built since it often costs a homebuyer the same money to buy new houses year over year, So older homes just get older with no increase in demand. 

Increasing competition in the area make for people buying tight deals that won't ever get better. So you really have to "make money when you buy". If you buy a retail or close to retail deal in Fayetteville you're loooking at 30 years of meager cash flow and nothing else. This makes for a lot of complexity for a meager return, the stock market is a far and away better way to invest than that. 

There are pros though don't get me wrong:

You get economic insulation against the larger market forces. This makes it really lucrative for new investors.

There is a nearly endless supply of renters, so vacancy rates stay low and the price/rent ratio is a appealing.

Also be careful analyzing from a distance. There are pockets of the area that will look appealing on paper but will be treacherous to deal with. I don't really recommend anything under ~750/month rents.