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Is the Triangle a Good area for Real Estate Investment?
simple answer is YES! There are over 100 people PER DAY
moving to the Triangle, Wake County in particular, the
Forbes shows net in-out for Wake County. Black lines
are those moving in, red those moving out. Many of these
people relocating will be looking to rent homes in the
Triangle. Some will have the natural inclination to
'find their feet' before committing to buying a home,
others will have to sell homes where they are coming
from and some may be grads coming for their first jobs.
All of these people (mainly professional) will be
looking to rent in the short or long term. RTP is the
biggest research park in the USA, the firms there, large
and small are bringing in new staff on a regular basis.
The other factor is affordability
and the high rents relative to sale prices of homes in
Where is the Best Area
Great Question! We need to ask a
number of questions to establish what you would be
comfortable with in terms of tenant and risk and reward.
There are three definite different types of tenant and
the areas geographic areas they rent in are fairly well
defined. There are professional people who are renting
on a temporary (probably 6 - 18 months), these people
want a good standard of accommodation, normally with an
easy commute to work. As most people in the Triangle
work in or around RTP the logical location is the 540
and I-40 corridor. The risk with this group is
relatively low and ongoing management is generally
minimal. With the preponderance of Universities in the
area the second group are students, obviously they want
to be as close to campus as possible, there may be
periods of vacancy due to the school year, management
and maintenance are likely to be factors to consider.
The third group is those renting for socio-economic
reasons. There are certain areas, particularly Raleigh
and Durham, where this kind of tenant is predominant.
Because house prices in these areas are relatively low
the potential rewards are high. The management however
can be pretty much a full time occupation and many
management companies will not touch this type of rental.
Which is the Best
House To Buy?
obvious answer is a cheap one! We have all heard in
recent years about REO, Foreclosures, Short Sales etc.
and it is true these do often represent bargains. The
problem with only targeting distressed home is that they
are probably not in the best areas to achieve optimal
rental income. In areas close to RTP, Morrisville and
Cary for instance foreclosure rates have been very low.
The real art of getting the right investment home is the
balance between the price you pay and the potential
rent. Other factors such as vacancy, maintenance
requirements and mortgage rates are also important
considerations. New homes can be really good investment
prospects. Determining what is the right property for
you requires collaboration between you, the investor
with knowledge from the OwnAmerica classes and your
experienced Real Estate Investment Professional.
So How Do I Get Started?
Call Kevin - 919-349-0096, have a
talk and see if real estate investment is right for you
and how he can help you get the best return on your
investment to mee your long term financial goals.