Forestville NC VS Garner NC

[Vaidehi Sapre]

Hi, we are new to investing in the NC area. I have seen in forums that prices are increasing here but we still see potential as tech companies are moving there. 

We are looking at the suburbs to have some better ROI. So can you tell me which is better are for rental investment of Forestville vs Garner. Both are close to Raleigh.

Also if there are other recommendations pls let us know.

Thanks

Regards

Vai

[Sammy DeStefano]

@Vaidehi Sapre

Garner, NC is your way to go between those two options. The reason this my opinion is the 540 Hwy project that was approved by the state. 

For those new to Raleigh, NC - there are two main highways that create a tight circle around the city of Raleigh.... the first is referred to as the 'inner beltline or the 440 Hwy' and the large ring that goes around the city is referred to as the 'outer beltline or the 540 Hwy'. However the 540 Hwy is incomplete at the moment. It looks like an upside down nose ring with the 'Southern Raleigh' area of Garner, Clayton and Fuquay Varina not complete. The project was recently approved and is racing towards completion with an estimated completion of 2026. I am extremely bullish towards this area.

If you were to reverse search real estate transactions from years past, you will see that everywhere the 540 Hwy is built, equity is injected into properties within weeks/months afterwards due to the increase of population, foot traffic and commercial business entry. Cary, Durham, Wake Forest - every town near the highway since they began.

[Vaidehi Sapre]

Quote from @Sammy DeStefano:

@Vaidehi Sapre

Garner, NC is your way to go between those two options. The reason this my opinion is the 540 Hwy project that was approved by the state. 

For those new to Raleigh, NC - there are two main highways that create a tight circle around the city of Raleigh.... the first is referred to as the 'inner beltline or the 440 Hwy' and the large ring that goes around the city is referred to as the 'outer beltline or the 540 Hwy'. However the 540 Hwy is incomplete at the moment. It looks like an upside down nose ring with the 'Southern Raleigh' area of Garner, Clayton and Fuquay Varina not complete. The project was recently approved and is racing towards completion with an estimated completion of 2026. I am extremely bullish towards this area.

If you were to reverse search real estate transactions from years past, you will see that everywhere the 540 Hwy is built, equity is injected into properties within weeks/months afterwards due to the increase of population, foot traffic and commercial business entry. Cary, Durham, Wake Forest - every town near the highway since they began.

 Thank you Sammy! Which are the hot rental neighborhoods? Am also looking at Greensboro even though its far out but the house size vs the price is still reasonable. Whwn looking at the RTP area it hard to get positive cash flow. 

And is it good time to look at Charlotte? 

[Dustin Goldstrohm]

Sammy is absolutely correct. I have investment property within about a mile of the construction he is talking about and have minimal complaints. Plenty of building happening in this area for years to come.

[Pat Lulewicz]

Agreed on looking S Raleigh in Garner than N Raleigh in Wake Forest for a better return. With that being said, N Raleigh closer to 540 will still provide good opportunities if you can find some value-add, but rent to price is more favorable in Garner.

@Vaidehi Sapre don't look so much at "hot rental neighborhoods" as just good demographics and economics + safety. Rentals just want a good home in the Triangle that's conducive to school and work, so even if you're the only rental property in a stellar A class community, it doesn't mean that neighborhood isn't a good rental neighborhood. 

Regarding Triad (Greensboro, Winston, High Point) - highly recommend any Triangle investor to take a look at that market and just have your property managed for you. It's the direction I end up seeing most of my clients and a lot of other investors go after their 13th offer, where they're 1 of 20 offers, gets rejected. Will still usually see higher ROIs in the Triad than buying the Triangle and self-managing.

Don't discount Alamance County either - Burlington, Mebane, Graham. Great growth recently. If you're open to it, LTRs and STRs in Wilmington provide great bang-for-buck with incredible economics in that city, plus can net your family a vacation home to travel to.

[Cory J Thornton]

@Vaidehi Sapre - Everyone has given you some good local insights. All of the areas mentioned have great potential. Wake Forest is projected to add another 10k housing units by 2030...and that is a similar story anywhere in a reasonable commute to Raleigh. Personally, In this market, I would consider qualifying multiple towns around Raleigh, and become familiar enough to be comfortable buying in any of them. The chances of a good buying opportunity jumping up in one or two specific neighborhoods in Clayton is narrow (not impossible). The more areas you can qualify and put on your list, the better the chances are that something meeting your criteria will pop onto the market in one of the. 

The other thing I would say is be incredibly comfortable with your numbers. If you run your numbers and a property checks the boxes, then assume is does for someone else, and don't wait until the next day to take a look and make an offer. 

Best of luck in your investing and learning Journey! 

[Vaidehi Sapre]

Thank you @Pat Lulewicz

Which All areas do you work in and how much does the property manager charge?

Also how is Fuquay Varina area?

There is a interest rate hike this week and how is market their responding to it. You think the house prices will come down or settle there. Cos with current interest rates nothing is making cashflow positive.

[Vaidehi Sapre]

Thank you everyone. I am now looking more at Garner and Clayton properties.

[Dustin Goldstrohm]

Quote from @Vaidehi Sapre:

Thank you everyone. I am now looking more at Garner and Clayton properties.

 It's a great area but as everyone mentioned keep an eye on all of the surrounding areas. If you need boots on the ground, let me know. I can do 360 virtual tours free of charge. Good luck!

[Stephen Tassy]

I have a lot of investors and friends who have properties in the Garner/Clayton areas and have a variety of investment strategies that are working for them. Definitely great place to invest, would love to share more.