Am I looking at the right areas?

[Yogesh M sayanakar]

Hello! I am a first time investor looking to make my savings work for me, I am particularly interested in new townhomes, but cap rate and cash on cash is coming out negative in the raleigh triangle area? I am looking at new townhomes in the 300-320k range, but finding nothing, am I looking at the right areas? Any ideas where there are better markets in the country?

Thanks in advance. 

[Shane Lafleur]

Hey Yogesh,

The Triangle can be tricky if you don't live here or don't know the area as it can be spread out quite a bit and rents vary depending on the location as well. Raleigh/Triangle experienced a tremendous amount of growth the past couple years as home prices jumped up rapidly and we are seeing the same growth in rents. Still the price to rent ratios and with the given interest rates, it'll be hard to find cashflow. 

With that, Raleigh still presents opportunity for those willing to sift through and put in the work. I have some off market opportunities presented to me monthly but for a newer investor, let alone out of state, it might be a more difficult project. Anyways, if you are interested in talking further about location in the Triangle area that you are not familiar with, reach out anytime. Best!