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Updated over 4 years ago,
What are Durham rents like for townhomes?
I'm considering investing in a rental property in the Durham area. My price range is 220-240K and less than 5 yr old construction. Of all the matches, 3 bed town homes (1600-1700 sq ft) seem to match my criteria the best.
Assuming I get a 4.7% 30yr fixed with 25% down, I'm looking at monthly $1250 payment (Principal & Interest, Property Tax, Home Insurance and HOA). I need to include a tenant finding fee and property manager fees (about $200 per month) (I'm remote investor), so total is $1450.
However, realtor.com and other rental sites show 3 bed town homes renting for $1450-1600. So in the best (and most aspirational) case of continuous rent, I'm looking at a $100ish cash flow every month.
What are your thoughts? Do you see rental prices growing in the next few years that this is a good bet (whilst there may not be immediate cash flow)?