First rental (Charlotte) – advice what to do next

[Steve Muise]

Rented out my primary home in Charlotte when my wife and I moved for her new job. $2500/mo. No mortgage. Not a fancy home just in a desirable area of Charlotte.

Trying to decide which direction to go for future rentals.

Have been considering more in Charlotte and/or Greenville, SC.

Options right now (1) PM on my home is a REI and knows Charlotte market. (2) Turnkey out of state (midwest). (3) Plan to attend Charlotte REI meeting(s) to try and make connections and weigh options.

Would like to hear back from vets on here.

[Sara Eastler]

Hi @Steve Muise

According to HomeUnion 2017 NSFR Report (and my lender who invests there) Charlotte is an excellent market to invest in.

"An anticipated increase in single-family construction in 2017 will start to reverse this trend. While prices have climbed, cap rates remained steady at 7.1 percent due to higher rents, making Charlotte a strong market for investors seeking above-average returns.

MARKET OUTLOOK

Employment: Charlotte employment growth will outperform the nation this year. Employers are anticipated to add 29,000 new positions by year end, lifting payrolls 2.5 percent. In 2016, 25,000 jobs were created.

Vacancy: Vacancy is projected to increase by 70 basis points this year to 8.1 percent. Last year, vacancy ended the year at 7.4 percent

Rent: Rents are forecast to grow 3.8 percent to $1,239 per month by the end of 2017.

Investment: Cash investors continue to dominate this market and capture cap rates above 7 percent, while institutional investors have moved to other markets. Traditional buyers could be enticed by an in ux of new homes in 2017, leaving opportunities for investors in older neighborhoods. "

I invest in the Greenville area and this one is strong as well, but there's power and efficiency in having your SFRs in the same location where you can capitalize on your team.

Regards,

Sara