Hello all
I’m moving to the Raleigh area of North Carolina and want to look into purchasing SFH’s for rentals. I just dont know what areas are good rental spots, so I thought I’d start here and see what you thought.
I’m moving from Michigan where I am buying 3/1 1000sf homes for $20-$30k that rent for about $900/month. Any areas in NC like this? Or should I just keep buying here?
I think the money is in newer homes there. Construction costs seem pretty cheap there. You have to look at newer homes with a loan to make the same kind of numbers you are now. I’d keep my eyes peeled, but run the numbers on a 2000 square foot home purchased for 100k with 20% down and rents for $1200/month. I’d imagine that’s what you are looking at. Keep in mind that insurance and property tax and maintenance eat up a smaller chunk of rent for newer homes.
Disclaimer: I’m from Kansas City. I have a friend from Greensboro, NC that has looked at rentals there. This is what he found. Maybe your luck will be different.
I would contact the local real estate investor’s club http://www.reiclub.com/real-estate-clubs/North%20Carolina.html and ask around as to what they are doing.
@Bluemoon06 Thanks for the tip. I was going to start looking up REIA clubs once I got down there. I’m searching craigslist and realtor.com now for homes. I see some I like, but dont know the areas well enough to seriously consider it. thanks