Consider a balanced approach by diversifying your portfolio with both cities.

What this narrow group of investors have in common though is they know the market well because they lived there for a couple years.

Ehhh my own fault.I'm deep on regional banks.I believe they are the back bone of American small business and all seem very well positioned.After reviewing many P&L's and balance sheets, I see lot's of value but time will tell.I'll either be a hero or a zero with this high risk investment.Wishing you much success and keep the dream alive 

The area should appreciate over the next few years as well.

I imagine there are a lot of 3/2 that probably sleep 8-10 and if you can offer a slightly larger bed count and a cool game room/theme room you can differentiate yourself a bit from your competition and get some extra revenue through slightly higher rate (extra person fees, etc) as well as an overall higher occupancy. 

Raleigh zoning allows a lot more flexibility now thanks to many changes.

I would just hire a guy to remove the popcorn ceiling - they might be able to weigh in as well as give you a quote. 

I can look to see if there are bars on windows, graffiti everywhere, how well people care for their lawns, etc.

full transparency, my partner and I got ourselves into trouble last year forgetting to file our local taxes in our new mucipality as we did not realize local taxes needed to be filed as well. we ended up hiring a tax accountant at the very last minute to help (after receiving mailed noticed) and went through all of this trouble for a measly $20 return. at least we got something for it, I suppose. 

Whether it's the interest rate spread, extensions, terms, or amount of stock needed, we can work something out that fits their needs.I've learned that the balancing test is important.