I visit the area yearly and there is no way to make a judgement from the internet. If all the neighboring places are going for $120K or even $90K, then what's the point of this overpriced place?
From a former Chapel Hill landlord to another future one, good luck!
My take is that with 20% down, a 6.5% mortgage, taxes, insurance, you're looking at $1100/month in expenses, assuming no HOA.
Even with some vacancies, 2 units, 2 BR each should fetch at least $1200/month or so unless things have changed drastically in chapel hill. I was getting $750/month for a much larger 2 BR, 2.5 BA unit in a location a little further out back in 2004-2005.
A few things to note: chapel hill property taxes are ridiculous. Make sure the property isn't in a floodplain. I recall flooding with some areas along Umstead Rd. Landlording is a headache. Make sure the n'hood and surrounding area are decent. IIRC, the area just to the south across the creek is the crackhead part of town (or it was 6-8 yrs ago). Probably not walking walking distance to campus. 1.25 miles to corner of Franklin and rosemary (top of the hill). RR tracks lie less than 1/10 mile to west of property. In my experience, many UNC students are looking for upmarket housing. Not to say this place won't serve the student market though. May also be good for lower paid staff. Not dealbreakers, just something to consider.
I found a nice pair of PhD students with graduate stipends to tenant my place. Nice cash flow while I owned it but being a landlord is a headache. good luck!
Looks like a steal to me. Man, $152k for two units. I can only dream about here in the Northeast.
I street view walked through the neighborhood, and it looks OK though I would say that the realtor used a bit of creative license to say that it's within walking distance to the campus. It's certainly within a short biking distance though.
Yeah, Chapel Hill taxes are ridiculously high. I think the tax rate would be 0.01809 which is more than 2.5x what I pay on my house. That's a good point about the floodplain. That would be a deal breaker. My friends pay $450/year in home insurance and $2000/year in flood insurance. Their basement flooded and their flood insurance didn't even cover their stuff that was ruined.
Chapel Hill has had average annual appreciation of 7.65% city wide since 1990. This area has had 9.17% over the same time. Looks like the market is going up this last quarter. $14,000 a year + rents of $28,000 a year looks pretty good to me. If you can't find anything better I'd JUMP on this.
Appreciation of 9% per year MAY happen, but $28000 per year in rents will NEVER happen today at this place. That is $1228 per month per unit with a 95% vacancy rate. Those rental rates would equate to a high end 3 br place in Chapel Hill most likely in a better location and better neighborhood (actually walkable to campus/Franklin St).
From a former Chapel Hill landlord to another future one, good luck!
Even with some vacancies, 2 units, 2 BR each should fetch at least $1200/month
You're argueing with your self. I used your rents.Appreciation of 9% per year MAY happen, but $28000 per year in rents will NEVER happen today at this place. That is $1228 per month per unit with a 95% vacancy rate. Those rental rates would equate to a high end 3 br place in Chapel Hill most likely in a better location and better neighborhood (actually walkable to campus/Franklin St).
I'm guessing ~$700/month per unit would probably be closer. I just searched CL and this was one of the first things that came up - Charming apartment homes at Camden Governors Village Granted it's 5 miles from campus but it seems like rentals are dirt cheap
You're argueing with your self. I used your rents.