Investing in Henderson, NC

[Aris Mantalvanos]

All,

Looking at an opportunity to invest in a duplex in Henderson, NC.  I am in Raleigh, so it's within an hour's drive.  I am struggling with the cliche location, location, location.  The property is fully rented with a year's leases on each.  It's also pushing the 2% rent to property cost envelope and would be netting about $1000 monthly.  I am not so much concerned on appreciation, but more so rentability and sustainability to rent at that price in that area/geo.  Anyone with experience in Henderson?

Thanks,

Aris

[Todd Concienne]

@Aris Mantalvanos I am familiar with the area but personally do not invest there and would not. You are correct it is probably not an appreciation play, at least in the short term, as what you can potentially get closer to Raleigh. You need to check crime rates in the specific neighborhood you are interested in and do very good due diligence on the property. Be sure to check vacancy rates as well as rent delinquency rate. As you get to that 2% rent to value rate it should throw red flags as to why. These are usually going to be below C neighborhoods. Check the relative school districts as well. This will be Vance Granville schools most likely.