My wife and I have been kicking around the idea of diversifying our investments and purchasing a rental property (especially after watching the DOW drop back down close to 10,000). We live in the Historic District in downtown Wilmington, North Carolina and the rental market seems to be pretty decent. Having a major university (UNCW) and a large community college close certainly helps the cause. Also, Wilmington’s vibrant downtown is a draw for people looking to live close to restaurants, shops, and cultural ammenities that our downtown offers.
I just did a search for Wilmington NC investment properties and came across an Active Rain post by Barbara Kornegay at REMAX. She has a triplex on Dock Street (between 8th and 9th St) listed for $255,000. The pictures make it look pretty nice and the neighborhood is decent. According to the listing, the property has 2 – 1 bedroom units and one 3 bedroom 2 bath apartment. This type of property could be great for someone looking to live in the home and rent out the two other units.
Let’s do a little math…say you could get into the home for $245,000. First, you would have to come up with the 20-25% down payment (245K X 25% = $61,250). Your loan amount could be somewhere around $183,750. Let’s then say you went with a 30 year fixed rate mortgage and, we’ll estimate, a 5.25% interest rate. This would make your monthly principal and interest payment around $1015/month. You could likely rent our those 1 bedroom units for $400-$700/mo each. Unlike the past few years, it is refreshing to see prices make investing in real estate look appealing again.