- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Considering investing in a single family home in Raleigh (Apex), NC
Posted on 4/26/23 at 11:02 pm
Posted on 4/26/23 at 11:02 pm
LINK
Currently have a condo as an investment property and am thinking of putting $100K down and financing the rest for a $400K Lennar new SFH in Apex, NC. I'll be happy as long as the rent covers the mortgage and property tax payments. It doesn't necessarily have to be a cash flow positive investment. Will have to get a property manager tho as I live nowhere close to NC.
I understand the Research Triangle area is growing fast due to all the tech jobs and it might still not be a bad place to invest, unlike Austin which has gotten so damn expensive and out of reach. Thoughts from the Money Board?
Currently have a condo as an investment property and am thinking of putting $100K down and financing the rest for a $400K Lennar new SFH in Apex, NC. I'll be happy as long as the rent covers the mortgage and property tax payments. It doesn't necessarily have to be a cash flow positive investment. Will have to get a property manager tho as I live nowhere close to NC.
I understand the Research Triangle area is growing fast due to all the tech jobs and it might still not be a bad place to invest, unlike Austin which has gotten so damn expensive and out of reach. Thoughts from the Money Board?
Posted on 4/26/23 at 11:19 pm to rickgrimes
quote:
I'll be happy as long as the rent covers the mortgage and property tax payments. It doesn't necessarily have to be a cash flow positive investment.
Assume some credit losses along the way and you’re looking at a negative cash flow property. You want it for appreciation, which I get. I’m not that far from that area and it certainly is a growing, promising area. But at what point would you be looking to capture your (potential) appreciation, while carrying it?
quote:
Will have to get a property manager tho as I live nowhere close to NC.
Although that’s a great area for real estate investing, no or negative cash flow, plus being an absentee and needing a PM would spell hard pass for me. 40 years in and I can’t predict success or failure with a RE investment, but that scenario has some bright red flags IMO.
Posted on 4/27/23 at 12:29 am to rickgrimes
I've got a few thoughts. I've been researching where to invest so have put some time into this.
1 For a $300k mortgage you're probably looking at around 2100 a month (assuming they tax you a little more as an investment property) and the average rents around there are in the 2300-2600 range. Refinancing when rates drop would have you in decent position.
2 Property management will take 10% of collected rent, so you might come out just ahead when rent is collected. But of course, there are tax benefits and equity growth.
3 Experienced real estate investors usually assume an extra 200-300 month in expected costs for a year long lease to cover repairs, cleaning, and vacancy. So while you may break even month to month, with that slim of margin you should expect to lose 2-3k per year cash (not counting the previously stated tax and equity benefits).
4 Is it truly a single family home or a townhouse? A short look at the rental listings there show a ton of townhouses on the rental market for 30+ days, but very few houses all getting contacts and applications quickly. If it's a standalone home then you will likely have a good place in the market.
5 It seems like a strong market with job stability so no qualms there.
6 I'd personally be reluctant to spend 100k on an investment property and I'd rather put that toward 3 smaller ones with slightly better cash flow, but that is simply preference.
1 For a $300k mortgage you're probably looking at around 2100 a month (assuming they tax you a little more as an investment property) and the average rents around there are in the 2300-2600 range. Refinancing when rates drop would have you in decent position.
2 Property management will take 10% of collected rent, so you might come out just ahead when rent is collected. But of course, there are tax benefits and equity growth.
3 Experienced real estate investors usually assume an extra 200-300 month in expected costs for a year long lease to cover repairs, cleaning, and vacancy. So while you may break even month to month, with that slim of margin you should expect to lose 2-3k per year cash (not counting the previously stated tax and equity benefits).
4 Is it truly a single family home or a townhouse? A short look at the rental listings there show a ton of townhouses on the rental market for 30+ days, but very few houses all getting contacts and applications quickly. If it's a standalone home then you will likely have a good place in the market.
5 It seems like a strong market with job stability so no qualms there.
6 I'd personally be reluctant to spend 100k on an investment property and I'd rather put that toward 3 smaller ones with slightly better cash flow, but that is simply preference.
This post was edited on 4/27/23 at 1:08 pm
Posted on 4/27/23 at 6:16 am to rickgrimes
I alwys get cash flow. $300 minimum. I'm selling off one that's just $350 due to crazy HOA I'm wanting to get from under. My others flow 500-800 monthly.
That said, wish I kept almost every home I've ever sold.
That said, wish I kept almost every home I've ever sold.
Posted on 4/27/23 at 6:23 am to rickgrimes
quote:
It doesn't necessarily have to be a cash flow positive investment
Sir. This is a terrible idea.
Posted on 4/27/23 at 3:20 pm to rickgrimes
I'm surprised you can even find a $400,000 home in Apex. I live just down the road in Holly Springs. The prices here are insane
Posted on 4/27/23 at 3:42 pm to rickgrimes
quote:currently renting in the triangle. Having my first home would be a dream. Congrats on potentially having 3.
Thoughts from the Money Board?
This post was edited on 4/27/23 at 3:43 pm
Popular
Back to top
Follow TigerDroppings for LSU Football News