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Old 07-01-2016, 10:53 AM
 
14 posts, read 12,226 times
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I drove by Holding Village /Ashton Village and saw beautiful single family homes and there is a 13 acre lake and good amenities, there are SF homes for low 300's and this is solely for Renting any suggestions/advice?There are 3 builders in the community.

New Homes at Holding Village in Wake Forest, NC | Ashton Woods
Holding Village | Wake Forest, NC
Holding Village | New Homes Wake Forest Raleigh NC | John Wieland
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Old 07-01-2016, 11:41 AM
 
13,818 posts, read 24,703,912 times
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Are you sure buying a nicer home is the best way to go for a rental?
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Old 07-02-2016, 07:03 AM
 
Location: Durham, NC
781 posts, read 3,353,775 times
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Honestly, that sounds about as bad of a rental property as you could buy. You really should always look in the $80,000-$120,000 range for investment/rental properties. That price includes all repairs and updates. Your maximum rental return on your purchase will be as high as it gets at this price point. As you get higher in price point you get diminishing returns on what amount of rent you can get.

Always aim for 3 bed/2 bath homes. If cash flow is your biggest driver, you really need to explore multi family/duplex options.
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Old 07-02-2016, 08:32 AM
 
166 posts, read 143,541 times
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Quote:
Originally Posted by freshjiv View Post
Honestly, that sounds about as bad of a rental property as you could buy. You really should always look in the $80,000-$120,000 range for investment/rental properties. That price includes all repairs and updates. Your maximum rental return on your purchase will be as high as it gets at this price point. As you get higher in price point you get diminishing returns on what amount of rent you can get.
I agree buying a new home for purposes of rental is a bad idea, but are you taking long-term appreciation into account in your return calculation?

Also interested in your experiences on actual renters, I'm guessing that unless you're renting to college students, someone interested in paying monthly rent on a $80k 3 bedroom property is probably struggling in life. Any problems with collections / evictions / other issues like criminal activity?
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Old 07-02-2016, 08:38 AM
 
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A new $300k+ home as a rental property? In Wake Forest? That seems like a terrible idea. Maybe if it was at the beach
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Old 07-02-2016, 08:57 AM
 
Location: My House
34,820 posts, read 32,768,581 times
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A home in the 300s is not a super-low priced home in Wake Forest.

I don't think I'd buy one to rent out.
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Old 07-02-2016, 09:28 AM
 
Location: Near Falls Lake
3,531 posts, read 2,455,817 times
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It is all about the math! I've worked with investors that purchase in this price range and have done pretty well. I've also worked with investors that purchased junk and haven't. Different class of renters in the $300k and up range.
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Old 07-02-2016, 09:43 AM
 
1,734 posts, read 2,173,533 times
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Quote:
Originally Posted by 143gardening View Post
I drove by Holding Village /Ashton Village and saw beautiful single family homes and there is a 13 acre lake and good amenities, there are SF homes for low 300's and this is solely for Renting any suggestions/advice?There are 3 builders in the community.

New Homes at Holding Village in Wake Forest, NC | Ashton Woods
Holding Village | Wake Forest, NC
Holding Village | New Homes Wake Forest Raleigh NC | John Wieland
Have you run the numbers on it so see if it will be cash flow positive?

Holding Village will take years to complete. In a new neighborhood like that you wont see nearly the appreciation an established neighborhood would. Also you should research Wake Forest as a whole, and you will probably see appreciation is some of the lowest for the entire triangle.

I would personally not buy one for a rental. There are a lot better opportunities in the Triangle and other areas in the country.
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Old 07-04-2016, 06:06 AM
 
14 posts, read 12,226 times
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Quote:
Originally Posted by freshjiv View Post
Honestly, that sounds about as bad of a rental property as you could buy. You really should always look in the $80,000-$120,000 range for investment/rental properties. That price includes all repairs and updates. Your maximum rental return on your purchase will be as high as it gets at this price point. As you get higher in price point you get diminishing returns on what amount of rent you can get.

Always aim for 3 bed/2 bath homes. If cash flow is your biggest driver, you really need to explore multi family/duplex options.
Homes in this range is that even a possibility please tell me where such homes exist I want to invest in one
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Old 07-04-2016, 06:28 AM
 
Location: Sneads Ferry, NC
12,262 posts, read 22,919,447 times
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Quote:
Originally Posted by 143gardening View Post
Homes in this range is that even a possibility please tell me where such homes exist I want to invest in one
There are plenty of townhomes in this price range in Raleigh. Also single family homes in Durham and Southeast Raleigh. As an investor, you would have to deal with the problems of lower-income tenants, more frequent turn-over, etc.

If you have the cash, you would probably have fewer problems with the $300K range houses. However, I don't think I would buy a newer house to use as a rental.
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