Market Discussion: Fayetteville, NC

[Josh Stenberg]

Has anyone invested into NC? 

Specifically Fayetteville, NC?

I'm looking at two properties that are around $50,000 on an off-market deal that can give me a cash on cash return of roughly 25% (13,000)

I am from Seattle so would be an out of state investment

It seems intriguing, anyone have thoughts on the location?

[Alexander Felice]

Despite Dan's optimism, know that he gets paid when you buy something from him. 

you can't trust a brokers for objective information, they get paid even if you buy lousy deals #asymmetry 

The fay market is a great place to learn, but in the last ~3 years it's efficacy has decreased significantly as the foreclosure market has slowed.

It's true that the military base allows for high levels of risk mitigation, but it comes at the cost of absolutely no growth...ever. There have been rent increases in the last year or so but I believe that to be temporary on the back of the larger economic surge. Fayetteville has grown a TAD over the last 9 years but nothing like the larger national economy and that is because it essentially has one employer that is not based on meritocracy (the army). The city had the chance to reinvest into itself recently and decided to overspend (and underfund) a baseball stadium downtown, the dumbest idea they could have possibly made and now compounded by closures thanks to Covid19. These types of decisions will cost the citizens in taxes and provide no real wage or job growth. 

Since there has been a surge of new investors here in the last few years that have shrunk the profit margins and with no appreciation in sight, the important thing to remember is that YOU MAKE MONEY WHEN YOU BUY. When you buy a rental here the day you close (after rehab) is likely the best it'll ever be, it's not going to appreciate and in many cases you can see depreciation here due to excessive sprawl. 

There is opportunity in Fayetteville for cash flow, you can do flips here as well, just be diligent about finding good deals. If you're finding easy and cheap deals its most likely in bad areas, any GOOD deals in town get scooped up within a few hours.

BAH sets the market rent around $1200, so I would suggest you get rentals slightly below that range. Stay away from Murchison road ;)