Investments around the Raleigh/RTP Area in NC

[William Meng]

Hi,

We have been looking to invest in a single family home around the Raleigh area in NC and would appreciate any advice from the fellow members of the BiggerPockets community. We like the area for a couple of reasons. The area has seen very strong population growth over the past few years as well as an influx of employers and businesses. The state overall has seen growth in its population as many migrate in from other states. Next, we love the state and its climate, and see it as a potential destination for a winter home when we have the time a few years down the line. For now, we would rent out the house and prefer to have a positive cash flow on it. 

We are specifically looking at homes in some of the suburbs such as Holly Springs, Apex, and Wake Forest. Our criteria is around 1500-2000 sq ft, a maximum age of 30 years old, and a budget of $450k. What do you guys think about the area and the cities I mentioned? Any other suggestions for areas that offer good value, are safe, and easy to find tenants? Any places that you would stay away from? 

Any advice is greatly appreciated!

Will

[Tiffany Alexy]

Will,

Those areas are nice, and it's true the Triangle has been experiencing a lot of growth these past 5-10 years.  Because of that, much of that growth is already priced in.  Your budget is healthy, but to get positive cash flow on that will be tough.  It's going to depend on a lot of factors, age/condition of the home, etc.  Rents have been going up pretty significantly these past 2-3 years as well, so its possible that it may not be cash flow positive now, but could be in the future, especially if rates drop and you're able to refi.  But I don't foresee that happening at least in the next few years.  

I'm an agent and investor and grew up in Cary, so happy to chat more if you have any questions.