Best rental area in NC & *Ideal* rent range

[Ben Kirchner]

I'm curious to what areas North Carolinians have found to be a good % return when considering purchase price to rent.

Personally, I live in Durham.  Unless I'm buying a wreck and doing a bunch of rehabilitation, I don't see getting 1% rent.  I have invested in Garner, NC (35-40mins away) with several properties.  For these properties, I've purchased them all under $100,000, and have been able to rent for $1100, with my newest addition expected to rent for around $1250 after some rehabilitation.

What other areas are good to look for this price point (~$100,000) and this type of rent return?  

Also, I've considered looking to higher end properties (~$200,000) in NC, but my thought is in North Carolina, if someone is going to pay $2000+ a month, they're more than likely going to buy a house.  While some may be only in the area for short term periods, I would imagine this would be a smaller crowd than those renting for the ~$1000 range.  I'd be interested if others in the area have found the same, or different.

[Chris Martin]

See also this and the comments posted. The 1% rule of thumb was easy to achieve 5+ years ago for much of Garner, but not as much now. To answer the "purchase price to rent" ratio question... older homes (50s-70s, early 80s) in older neighborhoods or not in subdivisions, older townhouses and condos, houses under distress sale conditions (estate, pre-foreclosure), outside the main high-$ areas (on the periphery, so 20+ minutes from where $250K-$300K "starter" homes are being built)... what I am familiar with: northern Harnett, western Johnston counties. Probably also southern Franklin and Nash counties, etc.