3-Bedroom Investment Property in Durham - 5.3% Cap Rate

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1002 Drew Street Durham, NC 27701

$275,000 | 3 Bedrooms | 2 Bathrooms | 5.3% Cap Rate

‍I'm Interested in this Property

Listing Description

Listing: Awning - Redfin - Zillow

Welcome to your dream investment opportunity! This stunning property at 1002 Drew Street in Durham, NC is a must-see for any investor looking for a move-in ready home with exceptional potential. With 3 bedrooms and 2 full bathrooms, this home is perfect for families, couples, or individuals looking for a charming and updated living space.

Step inside and be amazed by the spacious and bright interior, complete with neutral colors and character-filled details. The updated kitchen is perfect for preparing meals, and the laundry room adds convenience to your daily routine.

Located in a highly desirable neighborhood with an A- overall Niche grade, this property is perfectly situated near downtown Durham, offering easy access to shops, restaurants, and entertainment. The public schools in the area have a C+ overall Niche grade, making this an ideal location for families with school-aged children.

With a flood zone of X, no flood insurance is required, making this investment even more attractive. And with a renovation cost estimate of only $5,902, this home is truly move-in ready, requiring only minor touches to make it your own.

Don't miss out on this opportunity to invest in a property with great potential for long-term growth.

Investment Financials

How much does the home cost?

$275,000

How much will it earn in rent?

$2,000 per month

How much will it cost to renovate?

According to the Awning analysis, the estimated cost to renovate this property is $5,902. This includes partially repainting the interior of the home to neutral colors ($1,402) and a budget of $4,500 for any major items that may need replacing due to the age of the home.

How much cash can you take home in the first year?

Based on the Awning Analysis provided in the listing, the estimated cash flow for the first year is $39. This takes into account the estimated rental income of $24,000 for the year, minus estimated expenses such as property tax, insurance, repairs and maintenance, property management, and mortgage payments.

What is the cap rate for this property?

The estimated cap rate for this property is 5.3%.

All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Why People Rent in Durham, North Carolina 

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Where is Durham, North Carolina?

Durham is a city located in the state of North Carolina in the United States. It is located in the central part of the state, approximately 26 miles northwest of Raleigh, the state capital.

What companies are the major employers in and around Durham, North Carolina?

• Duke University and Duke University Health System: Duke is the largest employer in Durham, with over 40,000 employees. It is a world-renowned academic and healthcare institution that includes Duke University Hospital, Duke Regional Hospital, and Duke Raleigh Hospital.
• IBM: IBM has a large presence in the Research Triangle Park area, which is located near Durham. It employs around 10,000 people in the region and has multiple research and development facilities.
• Biogen: Biogen is a biotechnology company that develops therapies for neurological and neurodegenerative diseases. It has a large manufacturing facility in Research Triangle Park and employs over 1,500 people.
• RTI International: RTI is a nonprofit research organization that provides research and consulting services in areas such as health, education, and social policy. It is headquartered in Research Triangle Park and employs around 5,000 people.
• Fidelity Investments: Fidelity has a large operations center in Durham and employs around 3,500 people. It provides investment management and financial planning services.
• Cree: Cree is a manufacturer of LED lighting products and semiconductor materials. It is headquartered in Durham and employs around 1,500 people.
• Lenovo: Lenovo is a multinational technology company that develops and sells computers, smartphones, and other electronics. It has a large presence in the Research Triangle Park area and employs around 1,500 people.
• Durham Public Schools: Durham Public Schools is the public school district for the city of Durham. It employs around 5,000 teachers and staff members who serve over 33,000 students.

What are the demographics of  Durham, North Carolina?

Durham, North Carolina has a population of over 300,000 and is located in Durham County. The city's population is estimated to be around 95,000 people.

According to the latest census data available, Durham County is racially diverse, with White residents making up 50.7% of the population, Black or African American residents accounting for 37.7%, and Hispanic or Latino residents making up 12.3% of the population. The median age in Durham County is 36.7 years old, with a gender breakdown of 49.3% male and 50.7% female.

In terms of education, 46.2% of the population in Durham County has a bachelor's degree or higher, and the median household income is $69,218. The poverty rate in Durham County is 13.3%, which is lower than the national average of 14.4%.

As for the city of Durham itself, the population is slightly more diverse than the county as a whole, with 40.6% Black or African American residents, 46.7% White residents, and 13.1% Hispanic or Latino residents. The median age in Durham city is 33.6 years old, with a gender breakdown of 48.6% male and 51.4% female.

In terms of education, 54.5% of the population in Durham city has a bachelor's degree or higher, and the median household income is $64,908. The poverty rate in Durham city is 19.6%, which is higher than the county's poverty rate of 13.3%.

Overall, the demographics of Durham, North Carolina show a diverse population with a relatively high level of education and median household income. However, the city of Durham has a higher poverty rate than the county as a whole.

What is the Niche neighborhood grade and school grade in Durham, North Carolina?

Niche provides neighborhood and school grades based on various factors, including public data and user reviews. According to Niche, Durham, North Carolina has a neighborhood grade of B+ and is considered one of the best places to live in North Carolina.

Durham Public Schools, the public school district in Durham, NC, has an overall grade of B on Niche. The district serves over 32,000 students in grades PK, K-12 with a student-teacher ratio of 13 to 1. According to state test scores, 32% of students are at least proficient in math and 37% in reading.

Niche also provides individual grades for specific schools within the Durham Public Schools district. However, these grades are based on user reviews rather than objective data, so they may not be representative of the school's overall quality. US News and World Report provides rankings and ratings for schools based on various factors, including academic performance and college readiness. According to US News, there are several highly-ranked public schools in Durham, NC, including the Carolina Friends School and the Durham Academy, both of which are private schools.

What is the property tax rate in Durham, North Carolina?

The property tax rate in Durham, North Carolina varies depending on the location and assessed value of the property.

Durham County, North Carolina has a median property tax rate of 1.14% of a property's assessed fair market value. According to SmartAsset, the average effective property tax rate in North Carolina is 0.70%, which is lower than the national average of 0.99%. However, Durham County has one of the highest property tax rates in the state with an average effective property tax rate of 1.17%, which is the fourth-highest rate in North Carolina.

The City/County combined current tax rate for 2022-2023 in the corporate limits of Durham City is $1.2799 per hundred dollars of assessed value. To calculate the tax bill, multiply the assessed value of the property by the tax rate. For example, a property with an assessed value of $100,000 would have a tax bill of $1,279.90.

Overall, property tax rates in Durham, North Carolina are relatively high compared to the national average, but vary depending on the location and assessed value of the property.

How many rental listings and vacancies are in Durham, North Carolina?

As of the current date, there are numerous rental listings and vacancies in Durham, North Carolina.

Zillow currently has 229 single-family rental listings in Durham, NC, and a separate page listing all rental listings in Durham, NC. Realtor.com has 1,910 apartments and houses for rent in Durham, NC.

Overall, renters in Durham, NC have a variety of options when it comes to finding a rental property. It is recommended that renters use multiple resources to search for rental listings and vacancies to find the best fit for their needs.

What's the average rent in Durham, North Carolina?

According to recent data, the average rent in Durham, North Carolina varies depending on the neighborhood and type of rental property.

RentCafe reports that the most affordable neighborhoods in Durham are Colonial Village, Crown Point, and Eno Trace, where the average rent is $1,317 per month. Other neighborhoods with affordable rental rates include Glennstone and Landon Farms.

Zumper reports that the average rent for a studio apartment in Durham decreased by 7% over the past month to $1,411. The average rent for a one-bedroom apartment remained flat, and the average rent for a two-bedroom apartment increased by 7% to $1,797.

Rent.com reports that the average rent for apartments in Durham, NC is between $1,440 and $1,667 in 2023. For a studio apartment, the average rent is $1,440, while for a one-bedroom apartment, the average rent is $1,447. For a two-bedroom apartment, the average rent is $1,667.

From Listing to Rental

1. Place an offer on this property: If you want help finding the best representation, simply submit your information by pressing "I'm Interested in this Property" at the top of the page. 
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Hire a property manager to manage your property: If you choose to use Property Management Awning can help you select the best service and get you a deal on management in the area.