Charlotte real estate has been among the most attractive real estates in the country for the past year. With its strong and improving job market, home affordability, and popular cultural events, the city draws many renters and visitors. Whether you’re interested in owning a traditional or an Airbnb rental, here’s what you need to know about real estate in the Queen City.
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Charlotte Real Estate – What it Looks Like
- Median Price: $477,326
- Cash on cash return:
– Traditional: 2.55%
– Airbnb: 4.41% - Average Monthly Rental Income:
– Traditional: $1,763
– Airbnb: $2,019 - Airbnb Occupancy Rate: 45%
What has made traditional Charlotte real estate so successful? The main reason is its job market. Forbes named Charlotte as the one of the best places for business and careers. The city is a major U.S. financial center. And after New York City, it is the second largest banking center in the country.
Charlotte isn’t only known for being a top financial center. The city’s metro area has nine Fortune 500 companies. Charlotte’s industries also include foodstuffs; it is actually the country’s second largest producer of Coca Cola. The motorsports industry is also a key contributor to Charlotte’s job market. Charlotte also holds the nickname “The New Energy Capital”. As you’d expect, it is because of its productive and powerful energy sector. Over 240 companies are in Charlotte’s energy sector, employing over 26,000. This is just the beginning, as this trend is seen to continue. With this tremendous job market, your tenant pool will be wider than normal.
You could also rent to college students in Charlotte. The area has over 30 colleges and universities, so you’re bound to find college students who will need housing. Renting to college students is a great way to have lower vacancies and more guaranteed rent. Be sure to consider this as an option if you want to invest in Charlotte real estate!
Related: Best Places to Invest in Real Estate: College Towns
Charlotte real estate is also very affordable. According to Fortune Builders, in the first quarter of 2016, Charlotte’s ratio of income paid to monthly mortgage payments was 9.2%. The national average was 1.45%. Charlotte’s home affordability is among the top in the nation.
Charlotte Real Estate – Airbnb
You don’t have to go traditional if you want to invest in Charlotte. As a popular tourist attraction, Charlotte blossoms with Airbnb opportunities.
The city is home to many museums, sports teams, and cultural festivals. Most notably, Charlotte is one of the country’s racing centers. About three fourths of NASCAR’s racing teams are based in Charlotte. Many people from all over the country and the world visit the city to attend these events.
If you plan on investing in Charlotte real estate through Airbnb, make sure you follow its rules. Since zoning definitions and implementations may vary city to city, Charlotte’s zoning conditions may vary than what you would typically expect. Be sure to have the proper business license as well. Also keep in mind of the taxes you would have to pay, including a business license tax, sales tax, and room occupancy tax. All these rules may be somewhat tiring in the beginning, but it all pays off as soon as you get your Airbnb rental up and running.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
Top 3 Neighborhoods for Charlotte Real Estate1
1.) Elizabeth
- Median Property Price: $320,000
- Cash on Cash return:
- Traditional: 4.32%
- Airbnb: 2.79%
- Average Monthly Rental Income:
- Traditional: $1,746
- Airbnb: $1,967
- Airbnb Occupancy Rate: 58%
Elizabeth is probably best known for its history, as its historical district includes over 880 buildings. This makes it a great choice for Airbnb Charlotte real estate, as its Airbnb average monthly rental income is higher than its traditional one. Other popular tourist sites in Elizabeth include the rose gardens at Independence Park and the city’s first movie theater, the Visulite. You’ll also find opportunities for traditional real estate. The area contains the state’s largest community college. The city is also not too far from Elizabeth; in some areas it is only in walking distance. With all these factors, it’s not hard to see why Elizabeth is a top neighborhood in Charlotte real estate.
2.) Fourth Ward
- Median Property Price: $299,000
- Cash on Cash return:
- Traditional: 3.24%
- Airbnb: 6.22%
- Average Monthly Rental Income:
- Traditional: $1,634
- Airbnb: $2,657
- Airbnb Occupancy Rate: 57%
Similar to Elizabeth, Fourth Ward is well known for its rich history. With century-old Victorian-style homes, it draws many sightseers to the city. It’s also a hot area for those looking to live in Charlotte. According to Area Vibes.com, it scores as “exceptionally livable”. With great weather, a quiet atmosphere, great employment rates, and historical sites, Fourth Ward is suitable for both traditional and Airbnb renting.
3.) Third Ward
- Median Property Price: $420,000
- Cash on Cash return:
- Traditional: 2.41%
- Airbnb: 4.57%
- Average Monthly Rental Income:
- Traditional: $1,386
- Airbnb: $2,039
- Airbnb Occupancy Rate: 51%
Just like the two former neighborhoods, Third Ward contains some rich history. Major historical facilities and buildings were constructed in the area. The sports events in the area also attract many to visit it. The area is also very residential. Many single-family homes, apartments, and condos are rented by different tenants. And just like the previous two neighborhoods, you can keep your rental options open when investing in Third Ward.
To sum up, Charlotte real estate is very profitable. If you decide to go traditional, you’ll be sure to find tenants due to the city’s powerful job market, colleges, and home affordability. If Airbnb is your way, then the various cultural events and historical sites will help you find guests to rent out to.
To learn more about Charlotte’s real estate, and that of many other cities in the United States, start you trail at Mashvisor today.