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Updated 2 days ago, 12/31/2024

User Stats

263
Posts
256
Votes
Benjamin Carver
Pro Member
  • Real Estate Agent
  • Raleigh, NC
256
Votes |
263
Posts

Short Term Rental & Mid Term Rental Strategies for Raleigh-Durham NC

Benjamin Carver
Pro Member
  • Real Estate Agent
  • Raleigh, NC
Posted

If you're looking at buying a rental or house hack in the Triangle, then you should consider short term rentals.  Why? because we have a strong demand for them and great str laws.

The Triangle is visited year-round by travelling professionals in the research, medical, IT, and education space. We are in the top 10 fastest growing big cities right now, so families and singles are constantly flying in to check out the area.

Raleigh allows short term rentals if you apply for a license. Anyone can get one and it's a couple hundred dollars. Durham is even looser. Can regulations change? Of course. But 1) you're likely grandfathered in if they ever do, and 2) there are no talks or indications of changing directions on their stance. 3) long term rentals don't cashflow here, but our appreciation is super high. Airbnb gives you the best bet at getting both. 


Personally, I airbnb half of my house, individual rooms, and stay nearly 100% booked. I could tell you of countless others doing the same at scale. There is risk with any investment, anywhere, but airbnb does well here - if you buy the right place.

Locations: this is important. You want to be close to RTP (our economic hub) and the airport (located right by RTP). This is where people fly in, this is where jobs and internships are, and it's central to the entire Triangle. This is also (historically) where the best appreciation is, and our growth continues to feed that well past the covid boom. So I keep my eyes on North and North West Raleigh, Cary/Morrisville, South Point Durham, and Bethesda Durham into 27703.


Size doesn't matter as much with short term rentals. But it being updated and modern does, I bought an 84 and updated it myself (and guests RAVE about it). Ultimately the pictures combined with the location are what sells it.


You want to avoid HOAs at all costs. Townhomes and condos will not fly for this reason. A single family house with a small HOA can still present a lot of risk, so tread lightly. You'll likely see diminishing returns after 3 bedrooms unless you rent out individual rooms. Raleigh only allows 2 STR listings per house, but you could easily rent the others as mid-term through airbnb's platform (I do this). This is defined as 30 days or more, and you will easily find nurses, professors, students, and more than need a 1-3 month airbnb.

Speaking of, you could rent the whole space mid-term - and I suggest through airbnb or VRBO but you don't have to use those. You'll still make a premium over long term rental rates and not have to deal with a cleaner very often.

With airbnbs, the beauty is not having to hire a Property Manager, your cleaners act as eyes on the property. Good cleaners can restock and alert you of issues. Having a few good ones up your arsenal is crucial. Guests cover the cleaning cost. Of course, renting out the room and hiring a cleaner likely will make it too expensive for people to want to book your stay. I do by the room and house hack, and for now I self-clean (takes me 10 minutes) and make way better profit than if it were a whole house rental. 

Don't forget to run your numbers multiple ways. Conservative, aggressive. If a house hack, before and after move out. If STR, what about MTR, or LTR as a fail safe?

Starting is the scariest part. The moment the first payout hits your bank account, all that goes away. At least it did for me ;)



  • Benjamin Carver
  • Podcast Guest on Show #30
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