Durham Neighborhoods

[Dave Olverson]

Recently, I have been doing some research on the neighborhoods of Durham. As someone who doesn't (yet) live in Durham, I wanted to share my thoughts on the different neighborhoods and let people:

a) tear apart my thoughts if they are incorrect and

b) share their own thoughts on Durham neighborhoods!

Here's are my notes so far:

• Duke Park & Trinity Park - Seems like these neighborhoods have already "arrived". Really good neighborhoods, but properties might be too pricey and deals might be scarce here.
• Cleveland-Holloway - Currently "arriving" - could be some good deals to be had, but who knows for how long!
• Albright - Might take a little while longer, but given proximity to Cleveland-Holloway, could be the next up and coming neighborhood.
• East Durham - REALLY hit or miss. This could eventually be up and coming, but even more so than the rest of Durham, the landscape drastically changes block-to-block. This is a more risky area for investing
• Forest Hills - Another nice neighborhood on par with Duke Park and Trinity Park, but MAYBE there are still some deals to be found here?

I'd love people's thoughts on these neighborhoods as well as neighborhoods that are a little further away from downtown. Where do people currently invest and what neighborhoods do you focus on?

I am especially interested in a few questions:

• What neighborhoods have good cash flow? A lot of the downtown neighborhoods I assume are good appreciation plays, but there must be neighborhoods further out that are good cash flow opportunities.
• How do people feel about the Warehouse District?
• How do people feel about Watts Hospital-Hillandale?

Thanks for playing!

[Dave Olverson]

@Dana LaBerge - thanks for following up. For what it's worth, I think what people say is true. I HATE repeating this phrase because it feels like such a copout, but it truly is block to block. In fact, I know some streets where I would feel more comfortable buying on one side of the street than the other due to crime associated with a street that has properties with a back yard that meets the back yard of one side vs the other.

It is a very hot market and I think that cash flow based on no improvements is not really possible. Cash flow based on buying a distressed house and rehabbing it are certainly possible if you find the right deal, but you have to be really careful that you know the specific area well to know if it is a good investment.

I even know really "hot" areas that still have high crime (or perhaps have even higher crime than they used to because they are hot and gentrifying, which causes tension).

Durham just passed legislation called Expanding Housing Choices which makes ADUs and duplex conversions legal throughout the city. I think the only way I would invest in single family rental homes here right now is if I could get them for a deal and add an ADU or split it up into two units in a cost-effective way.

Of course, others may have more appetite for risk than I do and I certainly think that Durham as a market is continuing to rise and get even more robust with many more people moving to the area every day.