Home Buying in Morrisville>Question Details

loadashwin, Home Buyer in Morrisville, NC

which area is best to buy a townhome/single family home under 250K with a steady rent/cash flow- Cary/Morrisville or Durham?

Asked by loadashwin, Morrisville, NC Sun Dec 22, 2013

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Hi, loadashwin,

You can do well, or poorly, in either area, since the local markets vary within their boundaries.
I know that rentals are in demand in Cary/Morrisville, and expect as much in Durham.

Rental rates tend to be in the range of .6%--.7% of the home's sales value.
I.e., a $225,000 home may rent in the $1350--$1500 range.
Going for a higher return may be possible, but also increases the risk of non-payment and vacancies. Other than tenant damage to premises, vacancy is the #1 cost factor that destroys cash flow for landlords.

I would look in Cary and Morrisville as a desirable area, for proximity to good schools and easy access to RTP.
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http://www.nohasslepropertysearch.com/idx/search/basic
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Web Reference: http://RealtyArts.com
1 vote Thank Flag Link Sun Dec 22, 2013
loadashwin,

Additionally, I believe you should be a landlord near your own home. NOT right next door, as you don't want it to be too easy for tenants to bother you with little details.
But, if you live in Durham, I would suggest your thoroughly investigate opportunities in Durham. Make it easy to manage your rental properties.
Flag Sun Dec 22, 2013
Hi,

I own rental properties in Durham, Chapel Hill and Carrboro. If I were buying now, between these 3 locations I would buy in Durham. Morrisville, Brier Creek, Cary, are all very popular though Durham is the hot city right now. It is best to look at rental properties as a long-term investment strategy because it isn't easy to get a quick return. One of the other things I do and advise is to improve the property so that you create more equity and higher rents.

I'm always happy to discuss this because I love real estate investment. I've made mistakes, done well, and a whole range in between.

Vivian, aka CrazyViv
Web Reference: http://crazyvivhomes.com
0 votes Thank Flag Link Mon Dec 23, 2013
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