Wendy Burns

I have been driving up and down the beltline for the past few years searching out the best single family home investment prospects in Raleigh NC. One thing remains the same - they are available and affordable.

The Raleigh area has homes that an investor can acquire for $100,000 and less with immediate equity and cash flow potential. The homes are available, but the ones priced competitively, in good neighborhoods with "band aid" repairs go fast. The Raleigh market is not like California, Florida or Michigan. We are finding multiple bid situations on these listings and they are going for full asking price or more. So, if the bank, seller or gov't agency has dropped their price to 1/3 or more off repaired value, buyer's should be prepared to offer list or list+ on a good property if they want to succeed. Non cash investors should be prepared to compete with cash buyer's with a higher offer. Our market, like most, has suffered the last few years. Unlike other areas though, we did not experience the quickly increasing values creating a "bubble". Distressed homes here will not go for 65-55% of their oringinal value.

The North/east areas of Brentwood, Starmount, Berkshire Downs, Skycrest, Smoketree etc... are good areas to consider in the $75,000-$150,000 investment range. The north east area is an easy commute to downtown Raleigh and close to Triangle town center. Ex: In Smoketree I recently viewed a 1420 sf 3/2 detached Dept of VA foreclosure home. It was listed for $82,000 with an after repair value of about $130,000. Rental rate would be $1,000/mo. The repairs were @ about $8,000. So, at full offer plus repairs, cost of money would be about $650-700/month at current investor interest rates. That scenario offers immediate $40,000 in equity and $250-300/month cash flow - plus tax benefits (for now)!

The South east area of Raleigh has great income property potential, access to great magnet schools, neighborhood parks, and a lot of homes available for renovation. Some of my favorite neighborhoods include Farmington Woods, Worthdale, Longview Park (close to Wake Med), and NCSU area. Deals can be found under $70,000 and with repair, will rent for $700-$900 per month offering immediate cash flow and tax benefits. Several of these neighborhoods are on a bus line which is a great asset in the rental market.

Scotts Mill Neighborhood in Apex NC is a wonderful community and offers so much to it's residents. The first time I drove into this neighborhood, I fell in love with the architecture and "Pleasantville" type atmosphere. The homes are modeled after historic registered homes throughout North Carolina (ex. the Pullen house). All of the homes have welcoming front porches that evoke a friendly atmosphere. There are paved woodland greenways with wooden bridges over the small meandering creek. Neighbors walk, jog and bike on these rails which connect to surrounding neighborhoods and parks.

Scotts Mill has a neighborhood swimming pool, park and playground, volley ball courts, tennis courts and basketball court. They have an established swim team called the "Sea Dragons", neighborhood clubs and activities.

"The Green" section of the neighborhood has a center park, retail and office area and borders the private Saint Mary Magdelene School and Church. There are single family homes, townhomes and carriage style homes with small yards and back entry garages with small private alley drives.

The new I-540 is being built behind the outside edge of Scotts Mill. The Scotts Mill board has indicated that the dot plans to install sound barriers between the neighborhood and interstate. Most of the homes in Scotts Mill will not be within sight or sound of the interstate. The 540 will provide easy commuting to the Raleigh, Durham triangle area.

Zumba class is an exercise dance class that combines latin Salsa, Samba, Merengue, with African regae and modern day hip hop. It has the fun of an hour long party and claims to burn off up to 1000 calories a session. The Zumba slogan is "ditch the workout, join the party." But, the sweat tells me it is truly a workout. This sexy, fun latin movement has made it's way to Apex, NC and the classes are always full! Lifestyle family fitness off of rte. 55 by Home depot offers 5 classes a week. I've heard that Cary Dance Productions off of Buck Jones Road in nearby Cary, NC also offer classes. The new Harmony Pilates Studio in the Historic Tobacco Road building on N. Salem St. in Apex is offering a class this summer, with an intro on March 6th, 2011. The new Harmony Pilates Studio also teaches pilates, Belly dancing and some other movement classes. At the end of the one hour session, you won't want to stop. Now that's a way to keep motivated.

I will start out by saying that I am not a tax professional, only an American who is exhausted by the ever increasing tax burdens and trying to find solutions. Please consult your tax advisor for your particular tax situation.

With the increase in distressed properties, some great single family homes have come on the market at very affordable prices. I have been purchasing homes for myself and helping clients find good rental properties. For anyone willing to become a landlord - and let me tell you, I don't care what the IRS says, it's not a passive activity - the long term financial rewards can be worth it. If your Adjusted Gross Income is less than $100,000 per year, the tax deductions of interest payments and expenses (up to $25,000)available and the fact that someone else is paying down the mortgage combine for a winning formula. Then it gets better - you can deduct depreciation on the property while it is hopefully going up in value. Due diligence for both the property and tenants is most important for a successfull investment. See this article from turbo tax for more specific information regarding deductions and limitations http://turbotax.intuit.com/tax-tools/tax-tips/investments-and-rental-property/5568.html