Like most areas of the country today, the demand for homes in Charlotte far surpasses the supply, which has quickly increased home values. For many buyers, values have increased so much that even affording a primary residence is out of the question.
Where does that leave the market? For investors, it’s an incredible position. While the market is competitive and buyers need to act fast to buy Charlotte real estate, investors lucky enough to score Charlotte homes stand to make a decent cash flow because the number of renters will quickly increase.
According to Realtor.com, homes in Charlotte are selling for their list price or higher and are on the market for a median of 39 days. But, over the next 30 years, experts predict around 600,000 more people will move to the area.
Learn more about buying and selling investment property in Charlotte and markets around the country with Roofstock here.
It’s true that investors can choose any area of the United States to invest in. You don’t even have to live in the area you invest in. Today, you can hire a property management company to manage the property for you. All you have to do is invest the money to buy the house, pay the bills, and collect the rent, aka cash flow.
If you’re thinking about investing in Charlotte, here’s what you must know about investing in Charlotte.
Charlotte is the 3rd fastest growing city in the United States today. According to World Population Review, if it continues at this rate, it will grow 47% between 2010 and 2030. While COVID played a role in the increased population in Charlotte as millions of Americans moved and rethought their life plans with the wakeup call the pandemic caused, Charlotte has always been a popular place to live.
Many people moving from abroad choose Charlotte, and more Baby Boomers and older generations prefer to move to Charlotte and other southern regions for its lower cost of living. You’ll even find more millennials coming to the area - and this is the demographic investors should be interested in as it’s the generation that will most likely need to rent.
Charlotte home prices have been on the upswing since late 2020. Today, the average home price is around $295,000, over a 10% year-over-year increase. With inventory so tight, values keep rising, and sellers get every penny they asked for and then some for their homes.
Investors lucky enough to invest in Charlotte five to ten years ago have realized incredible gains of 45 - 60% with the rising values. No one knows if the increase will continue at this rate, but it’s a great time to invest in homes in Charlotte, as the price points are getting above what many middle-class homebuyers can afford.
It’s no secret that mortgage rates have been lower than ever before, which played a big role in the Charlotte, NC, real estate boom. More people could afford to buy homes with low rates, whether it was investors or primary homeowners.
As long as rates remain low, it will be easier for people to become homeowners. This includes investors who want to jump into the investing game. With the way the stock market crashed during the pandemic and wiped many people out, diversifying into real estate can be a great way to offset that from happening again, and now’s a great time to consider investing in Charlotte.
Investors looking for a bustling city to invest in should include Charlotte in their search. Known as a financial town since Bank of America has its headquarters there and Wells Fargo is a big name in the town, Charlotte offers many more job opportunities than just financial jobs.
Lowes, American Airlines, and the Charlotte Motor Speedway are also major employers in the area, bringing in people from all over, looking for quality housing. Plus, the unemployment rate in Charlotte is lower than the national average, making it a great place for investors to invest in a home without high rates of default.
When you have a stable job market, there’s a lower risk of defaulted rent and evictions. This is an important factor for real estate investors as no one wants to deal with evictions, lost cash flow, and high carrying costs while they try to fill a vacancy.
The higher population, stable job market, and increasing housing prices naturally lead to a booming renter’s market in Charlotte. The population itself has grown tremendously over the last year, but it’s also the demographics that have changed.
Charlotte sees a large influx of millennials in the area. Millions of millennials are still in the renting phase of their lives, which has increased the demand for rental properties in the area. This is great news for investors looking to set up roots in NC.
According to the US Census Bureau, Charlotte has a homeownership rate of 52.9%, which is lower than the national average of 64%, making it a great area to invest in rental properties. With increasing values, the demand is high, and investors can charge higher rent prices, increasing their cash flow even further.
With the higher home prices, increased demand for rent, and stable job markets, investors see incredible opportunities in Charlotte. Still, if you’re just starting, you may wonder how you too can jump on the bandwagon.
Investing in real estate seems overwhelming to many people because most think you need hundreds of thousands of dollars to invest.
Today, you can leverage your investment by taking out a mortgage. While investment properties require a larger down payment than an owner-occupied property, you can invest as little as 20 to 30 percent of the home’s price and borrow the rest. This allows you to leverage your investment and enjoy the benefits of real estate investing.
To invest in real estate in Charlotte, you’ll need help finding suitable properties. A real estate agent can help you, but most real estate agents work with primary home buyers, not investors. If you’re looking for a property that is ready to rent or even one with tenants in it, you need a platform like Roofstock Marketplace to help.
Roofstock Marketplace is a platform for investors buying and selling properties. What sets them apart from a traditional real estate agent is the market they cater to. Not too many real estate professionals cater to real estate investors. They often work with both, which is a disservice for real estate investors.
When you buy an investment property, you should work with someone who can give you all the details needed to make a solid investment decision. Roofstock Marketplace does this and more.
Not only can you buy an investment property on the marketplace, but you can buy a property with tenants in it already. It’s called a turnkey property, and it’s one of the best ways to invest in a property.
You get immediate cash flow when you buy a turnkey property because you buy a property with a lease already on it. Roofstock helps you understand all terms of the sale and the lease to make an informed investment decision.
Homes sold on Roofstock are sold by the owners. Roofstock is the platform that sellers use to list and market the property to the right audience - other real estate investors. You buy a home directly from another investor, and you get more information than you’d get from any other source.
When you buy a home to live in yourself, you need to know the home’s value, asking price, and a few things about the area. You don’t have to worry about cash flow, expenses, leases, cap rates, or returns.
Investors need all this information and more, though. If you’re going to invest hundreds of thousands of dollars (eventually) in a home, you need to know it’s worth your while. Roofstock makes it easy to get the information you need.
They don’t just provide the listing price and a brief description about the property - they offer more information than most investors could get themselves, including:
Estimated monthly costs
Net cash flow (estimated)
Rent (historical and present)
Roofstock provides everything you need to know about a property to make a solid decision. Seeing the numbers and evaluating the area, you can decide if the home is a good investment for you.
Now is an excellent time for investors to invest in Charlotte. With the economy bouncing back better than ever before, employment rates soaring, and more people moving to the area (primarily millennials), there will be even greater demand for rental homes in the area.
If you can afford the jump into homeownership in the area now, you can ride the wave of increasing rents and higher demand for rental properties. As the foreclosure ban comes to an end and more people are without a place to live, the demand for rental properties will soar even higher.
With Roofstock, you can buy a home already outfitted with tenants. You’ll know their rental payment patterns and can evaluate the lease. You can invest in a property and earn cash flow right away, allowing you to increase your exposure in the Charlotte market and put your money to good use.
If you’re thinking of investing in real estate, Charlotte is a great place to consider. Even if you don’t live in the area, Roofstock Marketplace makes it easy to start investing there. You can view the homes they offer online and feel like you’re there. With in-depth pictures and videos, investors buy homes sight unseen and with tenants in place.
It’s a win-win for everyone, and Charlotte is one of the hottest markets to get into right now. If real estate investing is on your mind, consider Roofstock Marketplace to help you find the perfect property to invest in and rent out in Charlotte, NC.