North Carolina - Multifamily 6.5+ Cap

[Allen Motakef]

Hi All,

I’m from Southern Californian and have been researching rent affordability & economic growth stats nationwide and Raleigh / Research Triangle area seems the best market since rents are still relatively affordable and local economy is growing faster than national average. Even though my primary objective is cash-flow, I also like to be in a desirable area (like Raleigh) with long term growth potential.

I’ve talked to several brokers to get a feel for the market and have been told that the cap rates are under 5.5% which is too low for out of state investing. Do you think it’s possible to get 6.5+ in this area for a B/C type multifamily property (20-50 unit)? Charlotte is also a possibility but seems to be less affordable. Any tips from local experts? Any recommending brokers?