All Forum Posts by: MJ Jav

I live in Raleigh and have a close friend who is an active investor in San Antonio, TX. The purchase price of SFH seem to be a lot lower in San Antonion than they are in the Triangle area. I think it would be worth exploring that market as your money likely can go further. The Triangle is a great area bu tin high demand with a lot of people relocating here so you'll have a lot of competition with home owners and investors alike. Just another perspectiThank

I think @Ananth NA is right on point. A SFH can generate cash flow but is really more of an appreciation play compared to a MF property. The value of the MF will be determined mostly by the cash flow it brings in. If cash flow appreciates so will the property value. The SFH, however, will appreciate with or without cash flow.

I also agree with the observation about the 1% rule. In the Raleigh-Durham area 0.5% is the prevailing measure. Mostly, this is because of the growth in the area. While some deals may be negative cash in the early years, the area growth will push up both rents and home prices tuning the deal positive within a couple of years.

In your stated price range (200K - 300K) you are likely to find some SFH and some TH but mostly condos (which are totally a cashflow play as they appreciate last). For my first-time investors, I recommend going the townhouse route because they are very rentable, less per door than SFH, appreciate well and much of the exterior maintenance is handled by the HOA.

Happy to chat and answer any questions you have about the area. Just reach out through BP.

1. Here's my take as an investor/broker that's been in Raleigh, NC for a long time:
   
   Why Raleigh? Raleigh stands out due to its position in the Research Triangle, a hotbed for technology, education, and healthcare sectors. This unique positioning drives consistent job growth and attracts a steady influx of residents, bolstering demand for rental properties. The city's diverse neighborhoods cater to various budgets and lifestyles, enhancing its appeal to a broad tenant base. Moreover, North Carolina's property taxes are generally more favorable than those in Texas, offering a better return on investment over time.
2. Exploring Other NC Cities: While Raleigh is my top pick, Charlotte and Durham also offer compelling investment opportunities. Charlotte's burgeoning financial and tech industries create a dynamic rental market, while Durham benefits from its proximity to top universities and research facilities, part of the Research Triangle. Both cities exhibit strong economic foundations and growth potentials, similar to Raleigh but with their unique draws.
3. SFH vs. Multi-family Units: The preference for SFHs in good neighborhoods is well-founded. Single-family homes tend to attract longer-term tenants seeking stability, which can reduce turnover and management challenges. This preference is especially relevant in Raleigh, where many neighborhoods are family-oriented, enhancing the appeal of SFHs. While multi-family units can offer higher cash flow, they often come with increased management complexity and tenant turnover, aligning with your goal to minimize hassle.
4. Investment Allocation: With a budget of $300k, diversifying across several SFHs in Raleigh could maximize both cash flow and appreciation potential. This strategy takes advantage of Raleigh's growing market, where strategic investments in select neighborhoods can yield significant returns. Your budget allows for a balanced approach, spreading risk while tapping into different segments of the local real estate market.

Raleigh's real estate market is characterized by its resilience, growth potential, and appeal to a wide range of tenants. These factors make it an attractive option for your investment criteria, balancing cash flow and appreciation prospects in a stable economic environment.

@MJ Jav i m exactly in the same boat as you are. I started looking at Raleigh and surrounding Clayton, zebulon area. Right now its very difficult to even breakeven with 100k down on a 330-350k decent size sfh. I feel someone has to put more down to become cash flow positive. Not sure if this growth of Raleigh triangle area will stay as it is or we will see a slow down and 5-10% correction this year.