Investing in Chapel Hill

Dispelling the myth of positive cash flow

Chapel Hill real estate is renowned for its consistent, stable, and relatively generous appreciation.  In the decades leading up to the housing slump in 2008, Chapel Hill enjoyed 3-7% appreciation per year.  Chapel Hill exhibited its unique resilience during the 2008-2010 market as many of our properties maintained their value.  Chapel Hill is not, however, a market where you should expect positive cash flow in year 1 of an investment.

Chapel Hill rarely avails itself of ‘cash flow positive’ investment property.  Assuming an investor puts 25% down on a property, a typical breakeven horizon is 5-7 years.  Properties that serve the UNC-Chapel Hill student community hold the most potential for cash flow neutral or cash flow positive scenarios.  The typical investor in Chapel Hill expects the return on their investment to be realized at the sale of the property (via appreciation), not from a positive cash flow.

Why should you Think Louise Beck?

Our Sales team is well versed in reviewing the available sales inventory and assessing each property’s investment potential.  Our goal is to identify properties with above-average potential to share with our clients.  Our clients benefit from the expertise our Management team offers in the form of potential rents, required improvements, geographic desirability, property amenity/appointment desirability, etc.

Louise Beck Properties is unique in that we have a vested interest in helping our investors procure high quality investment properties.  Our relationship does not end at closing.  Our Management team depends on us to supply them with properties that we know our marketplace will find desirable.  Doing so helps us ensure our clients have a successful and rewarding experience for the duration of their relationship with Louise Beck Properties.

We have over 350 clients holding more than 700 properties who benefit from this relationship each day.

Fair Warning

Be wary of the agent who presents you with 10 properties to view as potential investments. Selecting an investment property is nothing like selecting a home to live in. An Agent who treats it as such is not the agent for you.

It is a challenge to identify more than 3 properties at any given time that meet our criteria for a quality investment.  You should expect from us a detailed breakdown of the income and expenses applicable to each property you view.  If the agent you are currently working with is unable to provide you with this type of detailed information, than you are working with the wrong agent.