Chapel Hill housing options

[Phuong Tran]

I am coming through with my son for about 1 year for him to attend school in Chapel Hill. I invest in other markets in the US, but have not bought something for me to live in for a long time. I am looking for something close to his school in 27517 that I can rent/sell with relative ease after we leave. But it seems the housing market there is quite heated now, a real seller's market in Chapel Hill. Trying to find a 2.5 BR cottage-like housing with a garden. I am exploring some options: 1) Buy outside CH a fixer upper and find for myself a rental in CH close to my son's school; 2) Ideally, try to find something I can add value to in CH where I can live in, and rent out/resell with ease. 3)  Househack a MFH 4) Other. I would really appreciate other's thoughs. Is #2 possible in this market (for both houses and condos). Many thanks, and I look forward to connecting with Triangle area investors when we arrive next month.  

[Danny Kaminsky]

Hi Phuong, #2 might be possible but will be tricky in Chapel Hill. There are a few reasons I think Chapel Hill is a tough town to invest in: 1) Elite public schools make it compelling for homebuyers 2) Many high-paid workers in healthcare, tech, and education have pushed up home prices 3) A recently (~4 years ago) lifted moratorium on building apartments has allowed a huge acceleration in building, so MFH supply is skyrocketing now, but not SFH. However, there are still good deals here or there, most require creativity though. 27517 is one of the highest-growth zip codes in the Triangle for the next 10 years (considered the "path-of-progress" to the West by many), so if you can find something there that works, it will appreciate.