Potential Property in Durham Advice Plz

[Victor Zeytin]

Hi everyone,
I'm in discussions with a landlord in Durham for an off market sale. The property is a multi-family of approximately 17 units. I'm wondering what the general range is for properties in western Durham. The rents seem to be pretty low for this property and it doesn't meet the 1% rule. It's more like 0.7 or so. Competing properties which are closeby rent for the low 1000s albeit with updated interiors. To bring it up to that range, there would need to be some work done for sure. The property does happen to be on close to an acre of land however so potentially adding more units is a possibility I could explore. What do you guys think?

[Michael Casile]

I don't specifically know the Durham market but ... as mentioned, Google is coming to Durham in a big way AND Apple is coming to Apex (down the road) in a pretty big way as well.  In spite of our tyrant governor, NC is generally proBusiness and I think you could do well here long term.  Still, at that rate, I'd lay out some of your calculations to the seller and say you're really looking to get closer to the 1% rule.