Good neighborhoods for buying/renting (Raleigh: apartments, renters, condominiums)

[fromDCwithLOVE]

Hi,

I came across this wonderful and informative forum 2 days ago. I'm so glad I browsed into it!

I am interested in buying a SFH/condo in the RTP area, and I would like to get peoples' inputs about which places have most appreciation. A little background about me - I'm 29, work in the IT industry in DC. I'm married and my wife goes to grad school here. Where we live, its almost unimaginable to buy a decent condo for $300K, and SFHs are over $600K, so I am thinking about buying a home/condo in Raleigh now, and move to the area in 2-3 years after my wife graduates. Until then I would like to rent it out to help me pay mortgage.

I'd like to know how the rental market is in the area. I'd like the SFH/condo to be close to the RTP, so that when we move there, I don't have to look too far for a job.

Anyone here can suggest good homes in neighborhoods that are good live in as well as rent?

Thanks!

[raccemup]

I could be totally wrong but I have the impression that it's hard to make any real money with rentals here due to A) more affordable housing and therefore less renters than in an unaffordable area where most people rent like DC, NY, etc. Also that rent has to compete with affordable mortgages and B) there are many luxury, well priced apartments here that you'd be competing with. With a large enough down payment to be priced competitively, be able to cover the mortgage and have a little extra leftover you could do ok. I'm not saying people who have rentals can't make money but I would caution those coming from big cities where rentals are a big money maker that it's not the same here. If you are going to move into the house in a few years and are looking at it as a future home and investment for appreciation in that sense, that's different and it's not a bad idea. I just thought you should know that rentals probably won't make as much each month as one would think here vs where you're coming from. Just thought I'd try to help a little! Good luck!

[fromDCwithLOVE]

Thanks!

I'm totally out of options here; I know I want to move the area in a few years, but I don't want to wait until then to buy a house when homes may become un-affordable. I can't really buy anything here, as I already said. So basically my situation is like a double-edged sword :-)

How's downtown area? Are there condominiums there that people live in?

Originally Posted by raccemup

I could be totally wrong but I have the impression that it's hard to make any real money with rentals here due to A) more affordable housing and therefore less renters than in an unaffordable area where most people rent like DC, NY, etc. Also that rent has to compete with affordable mortgages and B) there are many luxury, well priced apartments here that you'd be competing with. With a large enough down payment to be priced competitively, be able to cover the mortgage and have a little extra leftover you could do ok. I'm not saying people who have rentals can't make money but I would caution those coming from big cities where rentals are a big money maker that it's not the same here. If you are going to move into the house in a few years and are looking at it as a future home and investment for appreciation in that sense, that's different and it's not a bad idea. I just thought you should know that rentals probably won't make as much each month as one would think here vs where you're coming from. Just thought I'd try to help a little! Good luck!

[Gurl]

Originally Posted by fromDCwithLOVE

Where we live, its almost unimaginable to buy a decent condo for $300K

I'm familiar with the Balto/DC/VA market, so I can TOTALLY relate. I moved to NC from the west coast 18 mos ago, where you can't get a decent condo unless you come off of $400k!

When I planned on moving to NC, I had CA prices on the brain. When I got here, the housing prices BLEW MY MIND.

I think you'll have the same response.

Look at what $450k would buy you in DC... You'll be able to get that for around $200k in many very nice areas in the triangle. Obviously, $300 simply increases your options, but there will be MANY.

If you want to rent, simply because you want to rent - that's cool. But if you can afford anything $200k-$300k, you have MANY, MANY options to buy. From SFH's in lovely neighborhoods to luxury condos.

Describe the type of neighborhood you're looking for, and I'm sure you'll get many good suggestions.

[VickiR]

I don't deal with rentals so I can't help but I do have an investor that buys houses to rent.

I'll suggest to you what he told me that he does...

He will contact a Property Management Company and ask which areas tend to be more rentable than others and what the property will rent for. He says thats a good indication of whether or not he should buy in a particular neighborhood or area.

Vicki

[MikeJaquish]

Originally Posted by fromDCwithLOVE

Hi,

I came across this wonderful and informative forum 2 days ago. I'm so glad I browsed into it!

I am interested in buying a SFH/condo in the RTP area, and I would like to get peoples' inputs about which places have most appreciation. A little background about me - I'm 29, work in the IT industry in DC. I'm married and my wife goes to grad school here. Where we live, its almost unimaginable to buy a decent condo for $300K, and SFHs are over $600K, so I am thinking about buying a home/condo in Raleigh now, and move to the area in 2-3 years after my wife graduates. Until then I would like to rent it out to help me pay mortgage.

I'd like to know how the rental market is in the area. I'd like the SFH/condo to be close to the RTP, so that when we move there, I don't have to look too far for a job.

Anyone here can suggest good homes in neighborhoods that are good live in as well as rent?

Thanks!

If you go significantly cash-flow negative on a rental for a few years, and then have to upgrade behind your tenants to bring it to your standards...
Well, it might be a better economic scenario to just wait and buy when you are coming to town.

[Gurl]

Originally Posted by MikeJaquish

If you go significantly cash-flow negative on a rental for a few years, and then have to upgrade behind your tenants to bring it to your standards...
Well, it might be a better economic scenario to just wait and buy when you are coming to town.

Good grief - I'm so glad I read your post. I missed the fact that the OP wanted to buy a rental property. My bad.

The condo development SouthPoint Landing might be easy to rent. There's also one going up further down Hope Valley road that also sounds fab!

[MikeJaquish]

Originally Posted by Gurl

Good grief - I'm so glad I read your post. I missed the fact that the OP wanted to buy a rental property. My bad.

The condo development SouthPoint Landing might be easy to rent. There's also one going up further down Hope Valley road that also sounds fab!

Gurl,
It is just hard to cover costs with a rental, especially if one has to pay a manager.
The headache of landlording from a distance make me think the best thing to do is to plan the move and come to town and buy.

Long distance residential rental is a losing game in general.

[Gurl]

Originally Posted by MikeJaquish

The headache of landlording from a distance make me think the best thing to do is to plan the move and come to town and buy.

I don't know what's 'best', but I know I'd wouldn't do long distance landlording. My risk tolerance isn't that high...

[wanderintonc]

Originally Posted by Gurl

I don't know what's 'best', but I know I'd wouldn't do long distance landlording. My risk tolerance isn't that high...

OP, I agree with these posters-I'd wait. I know it's hard, because I'm in the same situation. We had hoped to be down in NC this past summer, and in fact were visiting last Oct and nearly bought a house, with the idea to rent it. Thankfully, we did not, as we are not yet in NC (it's taken longer than we thought) and had we bought and rented it, we'd be exposing ourselves to financial issues if the renters didn't work out or trashed it.

I mean, I want a house so badly, but I'm resigned to the idea of waiting till we get there. I guess it depends on your financial situation-can you handle paying rent where you are now, plus possibly on a Raleigh property? For us, we can't, so we wait. If you can, it might be worth the risk. But, it's a risk.