I have always thought that Raleigh would be an awesome place to rehab and hold, but I can’t seem to get the numbers to work. And I’ve been reading some numbers on these boards that look like this:
Price of house $60k
Rent obtained $800-900/mo
And I think to myself, a house for $60k??? with that much rent???
No way, not in this area. So how are people making it around here? I could not get a house for less than $130 and if I got one at that, it wouldn’t rent for more than $1000 without a garage.
Can someone give some examples from Raleigh?
If you’re buying at retail prices…the number definately don’t work…if they did…everyone would be doing it.
I’ve been thinking that Raleigh might be a good place to buy and hold but havent run any serious numbers. What about a 3 bdrm townhouse that could be bought for 80k or so? Do you know what that would rent for?
I think you hit it right on the money. Townhouses are the way to go around here. They range anywhere from $600-950 depending on age of house. My townhouse is 3+office and it would rent for $990. Also, around here, Section 8 gives $950 for 3 brs!!!
There are tons of older THs you can buy in the $80k’s. I think that’s where I’ll end up going. New ones too are nice with garages and 3 levels. Rents easily to single folks with roommates up to $1240.
Another question I have is how do you do cash flow analysis before you know what interest rate you will get from the bank???
Cool, thats good to hear. As for your analysis, you can find out what the rate currently is when you get pre-approved then raise it by 1/4 or 1/2 point to be safe in your analysis.
Are you familiar with the South Raleigh area?I hear that it not the most desirable area,but looking at some recent photos on realtor.com,things seem to be changing for the better.The numbers seem to work pretty good in that area,especially with multi family homes.Here’s a local site that specializes in multi and single family homes for the investor Check it out and crunch the numbers for yourself.