All Forum Posts by: Greg Fitch

Zach I'm sure you could figure this out by looking at a map so to repeat the obvious, if you are thinking about real estate investing throughout in the state or outside whatever town you land in, you might think about easy access to major markets which would put you near I-85. It connects the Triangle, Triad and Charlotte. Also consider I-40 which partially overlaps with I-85 and connects Raleigh and Winston Salem which I-85 misses.

Hi Zach - I live in the Triangle and invest in Winston Salem so I’ll chime in here. The Triangle is thriving, with top universities, corporate relocations, biotech, great restaurants, awesome airport, etc. Lots of young people moving to Raleigh especially, The Triad has a lower cost of living and is more of a manufacturing and distribution hub. Winston Salem specifically still has some good white collar jobs but the loss of its various corporate headquarters - most recently BB&T bank - through mergers means a lot of office vacancy and that will slow down downtown investment. There is no Starbucks downtown for example! I don’t know much about Charlotte. Good luck with your decision. 

I bought a few multifamily properties in Winston Salem over the past 18 months. We’ll see how they perform. I think the city  has a number of attractive qualities in that the local economy is relatively diversified and large and large apartment owners don’t own as much inventory as in neighboring Greensboro so it’s an easier market to enter. I think the loss of corporate headquarters over the past decade has slowed down investment in town and emerging neighborhoods will take longer to improve. To be continued -

Justin, thanks for the reply. Another time. I hate asking but looks like infections in NC are again on the upswing.

Hi Justin - I'm an investor in town - would like to join but only if the event is outdoors - do you have a venue finalized yet?

Found it. Guardian Water and Power, Raleigh. I think I completed a webform and a sales person got back to me pretty quickly.

Last year I looked into submetering water for a 24 unit I own in the neighboring town, Winston Salem. Details are a bit fuzzy but I'll share what I recollect. I spoke to my property manager who helped me get a quote - and then she talked me out of it. First, the installation quote was higher than expected because labor costs were high - commercial plumbers are licensed and in short supply - and also the existing plumbing of each unit had to be brought up to code (so if you have an older property expect extra costs), and finally walls had to be repaired and repainted. Then the property manager noted that there's no process for enforcing payment, unlike rent in which nonpayment can lead to eviction. Finally I understand one has to get approval from the NC Utilities Commission to submeter which may be a straightforward administrative process but extra effort nonetheless. On the flip side, she said that, at least for my market, being able to promote to tenants that water is included in the rent as a selling point. All in all, I thought for now submetering wasn't going to offer a quick or high payoff. Perhaps in a few years if and when the property improves I'll take another look. There is a company in NC that makes the submeters; if you want to talk to them let me know and I'll find their contact information. Hope that is useful information.

Weston as a fellow Chapel Hill investor welcome to the area; It’s a nice quality of life. But you’ll find that most Triangle real estate does not cash flow positive, and with your work and family obligations you may or may not have the bandwidth to deal with traveling to distant and marginal areas.  The amount of cash you can dedicate to real estate investing represents a big commitment for you but it could take you years to accumulate funds for a sufficient deposit and renovation costs, during which time you could be chasing continued rising housing  prices. So I don’t know how well you’re going to achieve your financial goals this way. It would be a perfect amount to put into passive real estate investing (syndications). And no management headache and they’ll find markets that cash flow. I suspect you will come out ahead by time you reach my age and be a lot happier. We have a few young kids and I know what a difficult balancing act it is. Happy to discuss further offline. 

Peter that is good news. I just bought a 24 unit in Winston Salem. How is your investment there going?

Shamit, in general, there's a drastic shortage of working class rental inventory in the Triad so that's in your favor as you assess opportunities, but more specifically I agree with Justin that High Point is probably the least appealing investment market there, depending on your investment criteria. I think the best opportunities are along the I-85 corridor and near the downtowns of Greensboro and Winston Salem. That's where I see investments and jobs going. Having said that, like anywhere, there are good neighborhoods and bad neighborhoods and neighborhoods that may be good in the future; I'm sure you know how to assess that. Keep in mind there's more price sensitivity than in the adjacent metros, a reflection of lower income levels.