Iam planning to invest in a multi unit property with positive cashflow. After my brief research Iam finding Raleigh or RTP area, NC to be very attractive. Please note that Iam NOT looking for my primary residence.
I have following questions, Real Estate guru's and people living in Raleigh please advice
1. Do you think Raleigh is a good choice for long term investment property or any other city?
2. What are good neighborhoods in Raleigh/RTP area which have strong rental markets?
3. Expenses (Assuming I buy a property for 300K) like Taxes, Insurance and general maintenance expenses in Raleigh.
4. Iam planning to maintain/rent this property using a local Property Management company. How much do they charge and what are the issues?
Thanks
Raj
Investment Property in Raleigh, NC
Investment Property in Raleigh, NC
raj_2001_2001;84219Iam planning to invest in a multi unit property with positive cashflow. After my brief research Iam finding Raleigh or RTP area, NC to be very attractive. Please note that Iam NOT looking for my primary residence.
I have following questions, Real Estate guru's and people living in Raleighplease advice
1. Do you think Raleigh is a good choice for long term investment property or any other city?
2. What are good neighborhoods in Raleigh/RTP area which have strong rental markets?
3. Expenses (Assuming I buy a property for 300K) like Taxes, Insurance and general maintenance expenses in Raleigh.
4. Iam planning to maintain/rent this property using a local Property Management company. How much do they charge and what are the issues?
Thanks
Raj[/quote]
I live in RTP area. I am happy to answer your questions. I think it will help me to better answer your questions if you can elaborate more on 'multiunit property'. What is your thinking? How many units you have in your mind? How much you want to invest (this is key factor to suggest neighbourhood)? Want to go for old or new? What do you mean by longterm? 5 years? How much returns are you expecting at the end of 5 years?
PB
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raj_2001_2001
- Posts: 18
- Joined: Thu Feb 15, 2007 9:26 pm
Investment Property in Raleigh, NC
Patnababu;84228I live in RTP area. I am happy to answer your questions. I think it will help me to better answer your questions if you can elaborate more on 'multiunit property'. What is your thinking? How many units you have in your mind? How much you want to invest (this is key factor to suggest neighbourhood)? Want to go for old or new? What do you mean by longterm? 5 years? How much returns are you expecting at the end of 5 years?
PB[/quote]
Thanks PB,
Here are my preferences,
* Two to four units (I found some listings in Realtor.com but not sure if they are in good area, rental market etc)
* I want to invest between 250k - 350K including closing costs
* Iam planning to keep the property for 15 - 20 years (or more), so a newer property of less than 20 years would be better. Iam planning to R2I much before this time frame and planning to use a property management company.
* More than appreciation Iam looking for good rental income
Investment Property in Raleigh, NC
Taxes: 1% to 1.2% of the property values.
Property management fee: Depends on the company it can range from 8-12% of the rental income. You may have to pay some initial managment fees to identify the tenants. I do not particularly see any general issues but if you have any specific questions - please ask.
General maintenance: I would allocate 10% of the rental income to maintenance. Not necessarily you will spend entire money at the end of the year.
Insurance: You need to maintain 'rental insurance' which is equal or littel bit more than your primary residence insurance cost. A typical 3000 sqft house with purchase price of $350K will cost $600 insurance premium per year.
Age of the houses: Most of the houses around in the RTP area are realtively new (in good neighbourhoods). The general definition of old house in Raleigh is 10 years old. It is quite different than how you define in LA area. If some one is looking for new house - I would say they are looking for less than 5 years old. 5-10 years old falls into middle category.
Multiunit: Multiunits are difficult to find in new neighbourhoods (less than 5 years old). There are few multi units but they are old and close to Universities.
Money: You can buy couple of new town homes with 300K (approximately 1200 -1600 sqft each). You may get $800 to $1000 rental income per month for each unit. If I buy, I would buy new townhomes rather than old because your investment horizon is 20 years or more.
Positive cash flow: You may have positive cash flow if you buy old properties but may have to deal with unstable tenents. Maintainene expenses may be high. Turnover could be high in old homes. That may balance out between positive cash flow and maintainence expenses.
Strategy: You mentioned that you are looking for rental income rather than appreciation. Rental income is like value stock and appreciation is like growth stock. Since this area has still lots of development potential, you should look for appreciation rathern positive cash flow. If I were in your show I would look for fine balance between appreciation and rental income depends on the property. I do not mind if I end with zero sum (neither postivie nor neagtive cash flow) cash balance.
Areas: I would look for town homes in Morrisville area for purely rental purpose. It is upcoming area. If you are looking for appreciation/rental, I would look in outskirts such as Zebulon, Knightdale, wendell, wake forest, garner areas where I can buy 1 or 2 acres of land with house and turn it to rental property. Your rental will cover your loan and potential for land to aprreciate along with the house.
Is this good area to invest? I would say it is great area for your time frame. As a matter of fact it is right time to buy since the market is a bit slow here too.
That's all for now.
PB.
Property management fee: Depends on the company it can range from 8-12% of the rental income. You may have to pay some initial managment fees to identify the tenants. I do not particularly see any general issues but if you have any specific questions - please ask.
General maintenance: I would allocate 10% of the rental income to maintenance. Not necessarily you will spend entire money at the end of the year.
Insurance: You need to maintain 'rental insurance' which is equal or littel bit more than your primary residence insurance cost. A typical 3000 sqft house with purchase price of $350K will cost $600 insurance premium per year.
Age of the houses: Most of the houses around in the RTP area are realtively new (in good neighbourhoods). The general definition of old house in Raleigh is 10 years old. It is quite different than how you define in LA area. If some one is looking for new house - I would say they are looking for less than 5 years old. 5-10 years old falls into middle category.
Multiunit: Multiunits are difficult to find in new neighbourhoods (less than 5 years old). There are few multi units but they are old and close to Universities.
Money: You can buy couple of new town homes with 300K (approximately 1200 -1600 sqft each). You may get $800 to $1000 rental income per month for each unit. If I buy, I would buy new townhomes rather than old because your investment horizon is 20 years or more.
Positive cash flow: You may have positive cash flow if you buy old properties but may have to deal with unstable tenents. Maintainene expenses may be high. Turnover could be high in old homes. That may balance out between positive cash flow and maintainence expenses.
Strategy: You mentioned that you are looking for rental income rather than appreciation. Rental income is like value stock and appreciation is like growth stock. Since this area has still lots of development potential, you should look for appreciation rathern positive cash flow. If I were in your show I would look for fine balance between appreciation and rental income depends on the property. I do not mind if I end with zero sum (neither postivie nor neagtive cash flow) cash balance.
Areas: I would look for town homes in Morrisville area for purely rental purpose. It is upcoming area. If you are looking for appreciation/rental, I would look in outskirts such as Zebulon, Knightdale, wendell, wake forest, garner areas where I can buy 1 or 2 acres of land with house and turn it to rental property. Your rental will cover your loan and potential for land to aprreciate along with the house.
Is this good area to invest? I would say it is great area for your time frame. As a matter of fact it is right time to buy since the market is a bit slow here too.
That's all for now.
PB.
Investment Property in Raleigh, NC
All,
I am relocating to India in couple of months. I have a rental property for sale with positive cash flow located within the vicinity of Raleigh.
Brief details:
1.25 acre land
1250 sqft manufactured home; 8-9 years old; 3 bedroom and 2 full bath
Rental income $600 per month (have 2 years lease - that can be transferred)
Sale price: $74K
Serious enquiries onyl - please send PM.
Note: Considering the current mortgage scenerio, it may not be easy to obtain mortgage for manufactured home. Use of HELOC is the best funding vehicle.
PB.
Disclaimer: I am a professional real estate investor.
Admin: If this thread is not appropriate, please let me know - I will repost it.
I am relocating to India in couple of months. I have a rental property for sale with positive cash flow located within the vicinity of Raleigh.
Brief details:
1.25 acre land
1250 sqft manufactured home; 8-9 years old; 3 bedroom and 2 full bath
Rental income $600 per month (have 2 years lease - that can be transferred)
Sale price: $74K
Serious enquiries onyl - please send PM.
Note: Considering the current mortgage scenerio, it may not be easy to obtain mortgage for manufactured home. Use of HELOC is the best funding vehicle.
PB.
Disclaimer: I am a professional real estate investor.
Admin: If this thread is not appropriate, please let me know - I will repost it.
-
raj_2001_2001
- Posts: 18
- Joined: Thu Feb 15, 2007 9:26 pm
Investment Property in Raleigh, NC
Thanks PB for your detailed post and suggestions.
Investment Property in Raleigh, NC
Patnababu , can u give more information on this property? You mentioned tenants are in 2 years contract, how much time left on that? What are the additional expenses to maintain the property? How difficult is to find tenants if needed. Is it maintainable from different location?
BTW, I am also looking to buy an investment property with my friend. We are looking for around 500-600k with positive cash flow or in upcoming markets. I am primarily looking at Seattle area. Please suggest any -ves with joint property and other opportunities. Thanks,
BTW, I am also looking to buy an investment property with my friend. We are looking for around 500-600k with positive cash flow or in upcoming markets. I am primarily looking at Seattle area. Please suggest any -ves with joint property and other opportunities. Thanks,
Investment Property in Raleigh, NC
priceline;86957Patnababu , can u give more information on this property? You mentioned tenants are in 2 years contract, how much time left on that? What are the additional expenses to maintain the property? How difficult is to find tenants if needed. Is it maintainable from different location? [/quote]
Priceline, This property is taken.
Generally, tenants are responsible for all maintenance expenses except repairs. I buy AHS warranty on rental property to minimize repair costs if any. Finding tenants depends on location, rent, and nature of property itself. When I posted rental ad on craigslist for this property, I received at least 40-50 calls in a day. I think my asking rent was little bit lower than market price. But it gave me an opportuity to select the right people as tenant.
priceline;86957
BTW, I am also looking to buy an investment property with my friend. We are looking for around 500-600k with positive cash flow or in upcoming markets. I am primarily looking at Seattle area. Please suggest any -ves with joint property and other opportunities. Thanks,[/quote]
As long as your friendship alive and kicking, I do not see any particular negatives but you should think about ways to share profit, loss, expenses etc... for tax purposes. It's just logistics in my opinion.
Investment Property in Raleigh, NC
Hi
We are also planning to buy investment proprty like condos in NC. Which are the good places to buy and what is the property tax. And how much rent can we expect for 2 br and bath condo.
We are also planning to buy investment proprty like condos in NC. Which are the good places to buy and what is the property tax. And how much rent can we expect for 2 br and bath condo.