Greenville, Greensboro, or Wilmington, NC?

Question

Hi everyone, a close friend and I are partnering to get into real estate investing and trying to confirm our market (out of state) and strategy to begin with (ideally buy and hold). I work in property management software so I often talk to property managers and investors across the country about their strategies and experience with investing in their areas… and I’ve many of times heard great things about the up and coming cities and towns of North Carolina and the state’s landlord friendly laws. We initially were looking into Raleigh (because I have a personal connection there) and the triangle, though as we further explored, we learned the numbers don’t look great for purchasing and renting out long term … and so we’ve decided to look at markets outside, but not far from Raleigh, where we can get close to that renowned 1% rule. We’re starting to narrow in on a few: Greenville, Greensboro, and Wilmington, though it seems it may depend on the strategy for which market would be best to start in.

Ideally, we’d like to start with single-family long term rentals to start growing our portfolio, but then we’d like to get more creative with mid-term or short-term rentals that could create better cash flow. Greenville seems to have the lowest price point and so easiest for long term rentals, though Greensboro seems to be a close second. With Wilmington, it feels like we’d need to get further from the water (and closer to the college?) to make long term rents work with purchase prices. We are  interested in college student rentals as well and so it makes why we’ve looked at these markets.

We’d love to hear any insight and would love to talk to anyone who invests or works with investors in any of these areas. Ultimately, which market (including surrounding towns/cities) do you think would be the best to start our real estate investing portfolio in: Greenville, Greensboro, or Wilmington? (Or Raleigh if we could get creative but that seems like a stretch).

Jayme Currie · Answer

Hi Tim,

Greensboro has my vote but I'm an investor and agent here so I'm 100% biased haha.

Cole hit the nail on the head mentioning Greensboro's economic diversity. We have a strong economy that is not reliant on any one employer/industry. Multiple universities, hospital systems, large corporate employers (Proctor and Gamble, Honda Jet, Syngenta, Mack Trucks, Volvo, Toyota). Having a qualified (employed) group of tenants to rent your properties to is huge for minimizing vacancy/turnover/eviction.

Outside of investing, Greensboro is an attractive place for people to live: 2-3 hours to either the mountains or beach, relative affordability compared to Raleigh/Charlotte, mild weather, arts/entertainment, I could go on. These factors are drawing more people here everyday, which means that property values are poised to continue to rise.

I feel like Greensboro (really the Triad as a whole) is a sweet spot for getting a combination of cash flow and appreciation. The market can support LTR/MTR/STR so you also have some flexibility there to try out different strategies.

Happy to hop on a call to answer any questions you have about the area!

Pat Lulewicz · Answer

As a starter, the 1% rule is likely as antiquated as the 2% inflation target. Look at returns %, net cash flow, IRR (if you want to get crazy), and appreciation. Don't forget about equity paydown and the tax benefits. Without that, its very easy to get sucked into tertiary markets or low-price pockets of the cities you mentioned because it's at or near the 1% rule but the day to day management becomes a headache...there's something to be said for less of your time getting sucked up by poor properties vs 1% extra CoC on a spreadsheet.

You are correct on all accounts with your analysis. I'll add with Wilmington that unless you're specifically looking to be a student rental, going near UNCW isn't a requirement to be a rental. There is such an oversaturation of STRs, that when regular people that live there are looking for a LTR (particularly a dog-friendly one), the rent wild regardless of where you're located; I suppose being closer to campus will provide you the most tenant demand. I recently converted a STR into a furnished LTR (not students) and the returns have been amazing with so much less work.

Cole Bossert · Answer

All three markets have potential—it just depends on your goals and risk tolerance.

Greenville is a great starting point. Lower prices, strong rental demand from ECU and nearby hospitals, and it’s easier to hit solid cash flow metrics, especially with long-term or mid-term rentals.

Greensboro is a bit more balanced. It’s bigger, has more economic diversity, and can offer steadier appreciation, though the cash flow may not be as strong as Greenville.

Wilmington is appealing for appreciation and STR/MTR potential, but it’s pricier and zoning can be tricky near the coast. If you go that route, look further inland or closer to the college to improve your numbers.

Greenville, Greensboro, or Wilmington, NC?

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