Looking to buy an income property in Raleigh-Carry area. Targeting annual yield of 8-10%. Is it achievable or am I aiming too high?

Asked by John G, 85048 Mon Jul 22, 2013

also any suggestion for good neighborhoods i.e with good schools and low crime?

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6
My NC Homes…, Agent, Chapel Hill, NC
Tue Aug 6, 2013
If you're financing you aren't going to get returns anywhere near this ans you'll be paying 5.5% interest on the financed portion. Only cash purchases are going to spin you off a yield in the 8-10% range and the majority of the serious investors I work with are cash buyers. This 8-10% is generally gross return on income and savvy investors will tell you that when you factor in vacancies and maintenance you'll net 6-7%

Who is your target tenant demographic? Depending on who you wish to rent to will determine more than anything else where you should focus on buying. Graduate students don't care about school districts, they care about proximity to work/school. Families care about school districts but bring their own set of challenges. There's no one right answer, it's up to you to decide what segment of the market you're targeting.
0 votes
Thomas Bohlm…, Agent, Rolesville, NC
Tue Aug 6, 2013
John

When choosing a Realtor to work with, ask them if they own rental property too? The Realtors.personal experience from owning rentals will help you.

The 1% rule will help you. The monthly rental income potential should be no more than 1% of the final purchase price.

Good luck
Web Reference:  http://Www.allentate
0 votes
Jim Enright, , Chapel Hill, NC
Mon Aug 5, 2013
John, you may also want to expand your area into Durham and the historic neighborhoods. Contact Adam Dickinson at 501 Realty.
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Jay Sutton, Agent, Raleigh, NC
Sun Jul 28, 2013
8 to 10% is possible and I've helped investors achieve. However when you find a deal like this, you need to be ready to move quickly. You will find plenty of competition.
0 votes
LOUELLA VENA…, Agent, raleigh, NC
Mon Jul 22, 2013
Yes, this is possible I am happy to assist you with any questions you may have or send you some properties to view I am a licensed broker here in the Triangle plus I have my own rental business, V&V Properties so I manage over 40 properties I can help with the entire process because I deal with investors every day like yourself plus I own properties as well

thanks,
0 votes
Prakash Mody, Agent, CAry, NC
Mon Jul 22, 2013
It is better to see cash on cash means return for your down payment. Cap rate normally for commercial property. Yes you can still get 8% CAP rate. For rental you want to see rent multiplier.
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