Top Locations10 High Cap Rate Cities in the North Carolina Housing Market 2019 by Heba Baker January 31, 2019January 30, 2019 by Heba Baker January 31, 2019January 30, 2019If you’re going to invest in the North Carolina housing market, do it the smart way. This means knowing what to look for in order to find the best places to invest in real estate in 2019. Value and return on investment are what to look for. And one of the best measures of this in real estate investing is the cap rate. So let’s take a look at North Carolina and its high cap rate cities.North Carolina Real Estate Market 2019Using Mashvisor’s investment property calculator, we’ve got all the data you need to make a smart real estate investment in the North Carolina housing market. Let’s first give you the state-wide data so you have a general idea of rental property performance in North Carolina.Median Property Price: $318,366Price per Square Foot: $151Price to Rent Ratio: 20Days on Market: 76Monthly Traditional Rental Income: $1,300Traditional Cap Rate: 2%Monthly Airbnb Rental Income: $2,280 Airbnb Cap Rate: 4%Airbnb Occupancy Rate: 51%So the North Carolina housing market is looking pretty good with these numbers. Keep in mind that this is the average performance across multiple cities in the state. Real estate investing is a local industry; so to really get a grasp on the actual performance and profitability of investment property in North Carolina, you need to look at city-level and even neighborhood-level data.That’s exactly why we’ve used our cap rate calculator to narrow the North Carolina housing market down to the best cities in which you can find high cap rate properties for sale.Related: Top US Markets in 2019: North Carolina Real Estate MarketBut before we get into that, you might have noticed that we listed data for both traditional rentals and Airbnb rentals in the North Carolina housing market. That’s because these are two different rental strategies which perform differently in each market. It’s important for real estate investors to have this type of data on hand to make smart investment decisions. A city which might be full of profitable long-term rentals, might not be as successful with short-term or vacation rentals. And whenever you’re planning on buying a property to list on Airbnb, it’s important to check with your state/county/city regulations beforehand.Airbnb In North CarolinaIt seems the only cities with bans and strict regulations on short term rentals in North Carolina are Asheville and Raleigh. The latter having more recently introduced a serious discussion about new Airbnb regulations in December of 2018. However, there are plenty of other high cap rate cities for Airbnb rentals in North Carolina which don’t come with a long list of rules.Related: Your Real Estate Investment Guide to Airbnb Rental Properties: Where Is Airbnb Legal?Cap Rates by City- Airbnb Rentals in the North Carolina Housing MarketWe’ve divided our list of the best cities in North Carolina based on rental strategy. This first half will include high cap rate cities for investors interested in the Airbnb rental strategy.All data is provided by Mashvisor’s cap rate calculator.Jonesville- Yadkin CountyMedian Property Price: $147,060Monthly Airbnb Rental Income: $1,792Airbnb Cap Rate: 11%Bridgeton- Craven CountyMedian Property Price: $198,546Monthly Airbnb Rental Income: $3,553Airbnb Cap Rate: 10%Cherokee- Swain CountyMedian Property Price: $70,000Monthly Airbnb Rental Income: $1,459Airbnb Cap Rate: 9%Carova- Richmond CountyMedian Property Price: $367,580Monthly Airbnb Rental Income: $4,512Airbnb Cap Rate: 9%Fletcher- Henderson CountyMedian Property Price: $304,223Monthly Airbnb Rental Income: $3,943Airbnb Cap Rate: 9%If you’re looking for real estate data like this for specific neighborhoods or properties, start out your 14-day free trial with Mashvisor now. Cap Rates by City- Traditional Rentals in the North Carolina Housing MarketThis second half is for those of you following the traditional rental strategy. These cities will be your best shot at finding profitable North Carolina houses for sale for your next investment.All data is provided by Mashvisor’s cap rate calculator. Delco- Columbus CountyMedian Property Price: $79,000Monthly Traditional Rental Income: $1,230Traditional Cap Rate: 8%Garland- Sampson CountyMedian Property Price: $89,900Monthly Traditional Rental Income: $1,240Traditional Cap Rate: 7%Hollister- Halifax CountyMedian Property Price: $102,966Monthly Traditional Rental Income: $1,100Traditional Cap Rate: 7%Littleton- Halifax CountyMedian Property Price: $159,117Monthly Traditional Rental Income: $1,329Traditional Cap Rate: 7%Enfield- Halifax CountyMedian Property Price: $229,980Monthly Traditional Rental Income: $1,195Traditional Cap Rate: 7%So there you have it. Now you know where to start your search for high cap rate investment properties in the North Carolina housing market 2019. But how should you start searching? By using Mashvisor’s Property Finder Tool! Just sign up for a free account to find an investment property in a matter of minutes.Related: Airbnb Rentals or Traditional Rentals? This Tool Will Help You Decide!Now you know where you can find high cap rate properties in the North Carolina housing market, but why is the cap rate important?Cap Rate in Real Estate InvestingThe cap rate (short for capitalization rate) is the rate of return on an investment based on the amount of income it’s expected to generate. It’s a very important factor in determining the value of income-producing properties. Because income levels are included in the calculation, the cap rate is one of the best metrics to use when making investment decisions.It is also a great way to compare similar properties since all expenses are also taken into account. Different cap rates for seemingly identical properties could be because one generates higher income or has lower expenses.So there are two main uses for cap rates in real estate investing. Investors can either use it when selling properties; by using market cap rates for other recently sold comparable properties (real estate comps), you can value the property you plan to sell. Or when buying properties, cap rates can be used to determine whether the asking price of your prospective investments are reasonable.Related: What Is a Good Cap Rate for Rental Property in 2019?Although this post was mainly focused on cap rates in the North Carolina housing market, before making any investments, you should know cap rates mustn’t be the only deciding factor. There are many other important factors involved in property valuation and property analysis. To make sure you’re really investing in a profitable property, couple the cap rate with other important metrics and measures.To start looking for and analyzing the best investment properties using all the necessary metrics, click here. Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCap RateLocationNorth CarolinaTraditional 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post The Daily Habits of the Most Successful Real Estate Agents: Hear from the Experts Next Post 4 Tips to Help You Always Find Cash Flow Real Estate Investments Related Posts Best Real Estate Markets 2018 for Airbnb Investments Philadelphia Real Estate Market 2018: To Invest or Not to Invest To Invest or Not to Invest… in Los Angeles Real Estate The 10 Cities with the Highest Rental Rates 5 Reasons Why Chicago is a Top Airbnb City Why You Should Buy a San Diego Investment Property Now Is Los Angeles Luxury Real Estate a Good Investment? Kissimmee, Florida Real Estate: A Hidden Investment Opportunity? Invest in Joshua Tree Vacation Rentals Before the Summer of 2019 Here Are the Most Profitable Airbnb Cities at the Beginning of 2018 Is Phoenix Real Estate Market the Place to Invest at the Beginning of 2018? Is the Current Housing Market Favorable for Real Estate Investments?