Is the 1% rule applicable in the Triad region in North Carolina ?

[Tristan S.]

Hi,

I am looking for more information concerning SF rental properties in North Carolina where I have some family. I am looking specifically in the Triad area which encompass Greensboro, Winston Salem and High Point.

Is it realistic to find properties that follow the 1% rule ? I know that property taxes are much lower than where I live now which should be beneficial for the cashflow but I am not too sure about the rent levels.

Also, is there any small multifamily available in those areas (duplex, triplex, quad) ? 

Thank you so much for your help and looking forward to reading your answers.

 

[Greg Fitch]

I find that right now High Point lacks the middle class that Winston Salem and Greensboro have, and the multifamily inventory reflects that - it's usually in rough shape. Both WS and Greensboro have more diversified economies and are seeing lots of downtown investment now. I think you'll see more appreciation potential in the two larger cities if you buy in solid neighborhoods.In general however the Triad is not building anywhere near the amount of apartment housing that would satisfy apartment household formation, so reasonably priced units rent almost immediately anywhere in the area. So it depends on whether you want to invest for cash flow or appreciation.