Where Are the Best Places to Buy Investment Property in Raleigh-Durham?

The Triangle, which is the culmination of Raleigh, Durham, and Chapel Hill, is growing at a tremendous pace.

Though it's also been known for decades as the bed of high-tech research universities like Duke, NCSU, and UNC, the growing presence of large technology companies is nearly perpetual.

Apple just announced a new campus in Morrisville that will bring in 3,000 jobs and billions in North Carolina investments. Additionally, Google announced a new campus in downtown Durham, bringing nearly 1,000 jobs to the Bull City.

With all the new campuses coming to the Research Triangle Park area, or RTP, there will be demand for large infrastructure projects in transportation, building, urban design, and real estate. We'll need supporting jobs in all service sectors to sustain an influx of people, and these people will need housing that's close to the things they care about.

But with the seemingly crazy real estate market of the past few years, how can these people afford housing that fits their needs?

With coliving we can.

Coliving represents a new model for both people looking to move, and for real estate investors trying to build a portfolio. So, what is coliving? (You can read more here to understand it).

Assuming you understand how it works, coliving is growing tremendously.

With coliving, housing efficiency grows as the conversion to multiple "units" within a home creates a larger market for professionals seeking housing close to work and other activities.

When you list your home on Alcove, your investment property will be filled with professionals who each pay their own portion of rent and utilities. This creates more choice for them, and with our revenue-sharing model, greater returns for you.

Investing in rental real estate can net you solid cashflow in Raleigh-Durham. However, this cashflow has been lower than other markets due to low price-to-rent ratios (many not hitting the 1% rule).

Because rents in Raleigh-Durham have stayed relatively low compared to the price of the homes being sold, rentals returns were suppressed. And while we don't believe this will go on forever, renting out a home traditionally (to a family of four), doesn't generate the best return for investors.

Coliving allows you to generate higher returns than traditional renting, sure.

But where in Raleigh-Durham should you be buying to get the best match for coliving?

Frankly, we know anywhere within the city limits of Raleigh and Durham will bode well for returns, but more specifically, we'll list some areas that are great investments now and in the future.

Based on our data and research, these are the best places to buy investment properties in Raleigh-Durham include (in no particular order):

Cary

• Downtown - Becoming more difficult but still some hidden gems

• West Cary near I-540 - Where the new Apple campus is being built, plus a ton of new neighborhoods

Morrisville

• RTP near highway 147 and Triangle Expressway

  • This area is known for all the technology companies that are HQ'ed in the area. Because of this, you'll be able to find great, long-term renters

Durham

• South Durham near Southpoint Mall

• North Durham near Costco

• Hope Valley

• Downtown Durham - near NCCU

• Downtown Durham - near Golden Belt

Raleigh

• Northwest Raleigh - near Umstead Park

• Northeast Raleigh - on the way to Wake Forest

• North Hills

• East Raleigh - near Neuse River

  • Older homes that are being flipped for a premium

• South Raleigh - near Garner

  • In 2022, you'll be hard pressed to find a better deal than Garner at the moment

• South Raleigh - near I-40/440

Further out from the Triangle, but are hotspots of real estate activity:

• Wake Forest

• Knightdale

• Rocky Mount

• Wendell

• Clayton

• Garner

• Fuquay-Varina

• Carrboro

• Pittsboro

These are just a few places in the Raleigh-Durham area that are great for investment properties.

If you're interested in purchasing an investment property, and are unsure how much you could get in rent, schedule a call with our partnership team: alcoverooms.com/homeowners

We'll run the property through our coliving rental estimator and see how much rent you'll be able by listing on Alcove.

If you're curious to learn more about why Alcove is a great option for real estate investing, read more here!