Rental Propertys in New Bern?

Question

Does anyone own investment properties in New Bern, NC or know what the market is like in New Bern?

Patricia Taveras · Answer

Hi Noa. I doubt I am qualified to tell you the average price of buying a rehabbing here in general, but I am happy to share my numbers on my last three purchases, which account for all but one of my rentals:In 2018 we bought a 3 bed 2 bath double wide for $15,000. We had to buy a lot to put it on, move it, rehab it, build foundation, tie in to city water and sewer, etc. Total all in cost was $45,000. It now rents for $800/mo. Last year, we bought two 3 bedroom 2 bath houses, 1100 sq. ft., with one car garages in a nice little neighborhood. Both built in 2004. Light rehabs. ARV on both is $138,000. Purchase price on first $90,000 with $10,000 rehab. Purchase price on second 100,000 with $7,000 rehab. My husband and his team did the work on both. Both are rented on airbnb, so rents vary. We love airbnb! These last two houses are what I consider to be very desirable rentals for long term buy and hold (even though that is not our strategy - it is our back up plan) - good school district, newer construction, in "cookie-cutter" neighborhood. This style neighborhood usually has a good mix of owner-occupant and rentals. The tenants are good quality and treat the place like home. These homes rent long term for between $900 - $1100/ month. There are several neighborhoods in New Bern that compare to this one - the challenge is picking one up for a good deal. (We live in our neighborhood, knew what was vacant and sent a letter to one owner, and offered to buy neigbor's house when she said she was moving.)There are some neighborhoods that are near the hospital that have some older, small, affordable homes that I would consider purchasing as long term rentals as well. They would need larger rehab budgets, but people still want to be in some of those areas. I would say ARV in those neighborhoods would be closer to 100,000 - 110,000.People hold more expensive rentals here, too, but I don't know how they make those numbers work!Hope this helps!

Patricia Taveras · Answer

@Michael ReillyThey are in a cute little neighborhood in James City. We have actually been killing it during Covid. A bunch of people cancelled at first mid March, but some construction teams booked and stayed March and April where the travelers cancelled. In May, the travelers were booking again, and the summer is hot! We have had very low vacancy the entire time. It's been great!

Patricia Taveras · Answer

@Michael ReillyI guess I could have also mentioned it's been good enough we just listed our third str on airbnb!

Patricia Taveras · Answer

@Noa LawtonHi Noa. I own two long term rentals and two short term rentals in New Bern. All are doing well. We lost a lot of homes in Hurricane Florence. People are fixing and flipping them, but if you can get your hands on a house that didn't flood that needs rehab, you'll sell it faster. There are also less homes for rent, so you'll have your pick of tenants if you buy and hold. My short term rentals are staying surprisingly booked even in January, what I thought would be a slow month. It's hard to find contractors here who have the time for your rehab though. But I do love investing here!

Patricia Taveras · Answer

@Stacy WhiteHey Stacy. Just saw this post so I know I'm a little late answering, but when I have been concerned about flood risk I have called my insurance company and they have let me know what kind of flood zone the property was in and even provide an insurance quote. Proximity to the river itself doesn't necessarily indicate flood risk, elevation is the real concern. Plenty of properties close to the river did not flood because of higher elevation. Hope this info still helps in some way.

Stacy White · Answer

Hello - I'm wondering if anyone knows anything about flood risk in this market. I'm looking at a storage facility but it is quite near the river beds and that does concern me. Looking into the cost of flood insurance, but definitely not good for business if it's in a higher risk zone than other facilities.

Sean McDonnell · Answer

There are a lot of good opportunities in New Bern for BRRR and flips. A lot of properties sustained hurricane damage over the past two years that are still on the market. What type of property are you interested in?

Michael Reilly · Answer

@Patricia Taveras what area are your str’s in? Have they been affected at all by Covid?

Noa Lawton · Answer

@Patricia TaverasWhat would you say is a the average price range of buying and rehabing a rental there ?

Noa Lawton · Answer

@Sean McDonnellHey Sean, Thanks for replying. I’m interested in Long term rentals.