Anyone investing in the Triad, NC

[Mary Olynick]

Hi Investors, I’m thinking of investing in Triad region in NC (Winston Salem, Greensboro, High Point) out of state because most of my extended lives there and I can combine my hunt with family visits. I’m researching local economy (incomes, employment, population growth, etc.), vacancy rates & rental averages in various neighborhoods, and the numbers look promising though all over the place per micro-region. For instance, some neighborhoods have <5% vacant, while others have 20%+. Do any of you smart people have any personal knowledge on InvestIng In area or other advice on analyzing the area. I’m looking to cash flow as high as possible combined with some BRRR’ing.

[Greg Fitch]

Hi Mary - I started investing in the Triad about a year ago. I looked dozens of deals all over the Triad before some success - am in contract on my first two properties, some modest townhouse properties. My observation is that the big reason why vacancy is high in some properties is because of management issues (absentee/out of state, poor business skills, spouse dies and surviving spouse is over his or her head, etc.) or because the property and units have fallen into disrepair (often tied to the first issue, mismanagement). Really any clean and tidy unit properly priced in the Triad should be renting. I hear that from agents and officials all the time. 

I focus on properties near I-85, which as you know connects the Triad to the booming metros of the Triangle and Charlotte, and then Atlanta. I-85 is becoming one big commercial development, with light industrial and distribution employers moving in and expanding, so I think workforce housing investments near the highway is a safe bet. Having said that, even within each metro as anywhere there are neighborhoods poised for investment and neighborhoods that will continue to languish. For me, it really helps to drive the listings to get a sense of neighborhood dynamics. A multifamily located in a well cared for single family neighborhood reasonably near daily necessities and job access is particularly attractive. I avoid more distant sub-markets like Eden, Asheboro, etc. - their population and income growth projections are not good as they have not recovered from manufacturing job losses. I hope this is helpful!