Pre-construction In Raleigh/Durham/Chapel Hill,NC
Folks,
I would like to hear from folks on the dynamics of the
RTP area RE market.
The existing SFH are selling ok with about 3%
appreciation.
The existing Town homes are not selling that well.
Per my mortgage broker, he has seen atleast 4
closings where owners had to bring $$$ to the table
at the time of closing to get out off their properties.
The builders are buildng new homes all over the
place and there is a glut of supply. Almost all new
communities have over 40% investors.
The builders only want $1-3K on a pre-con contract,
contrary to over $20K+ in the northern VA area. Hence
a spate of investors i guess.
I would like to hear from folks on what they think
about the growth possibilies for this area.
Yes there are folks moving in, but i guess the demand
is artificial due to the investors. There cannot be
that many renters in this area is my guess. But either
way, i am new to the area and looking for advice.
Please use this thread to discuss/voice your
opinions.
Thanks
Krish
Sorry, forgot to put that I figure after closing costs, I am at about 109,000 so I figured flipping for about 112,000
Thanks,
Ryan
Looks like a skinny one to me. If they are having trouble retailing it in the area, chances are your quick turn exit strategy would fail with a small amount of equity.
Renting would be a great plan if you qualify for good financing. If you could get NOO for 30 year loan at 6% fixed your payment on 100% LTV is 653.51. And on 95%LTV $620.83. Now just add in taxes, insurance, and a vacancy allowance, and you can see if your property would cash flow.
If you cant ccash flow from it, and you dont want to live in it, then pass.