A Smart Investor’s Guide to the Raleigh + Johnston County Market

Featuring: Thomas Torkelson, Realtor®

The Raleigh real estate market continues to rank among the fastest-growing in the U.S., especially for residential investment properties. From renovated single-family rentals to high-demand townhomes and small multi-family units, the Triangle offers huge opportunity — if buyers know how to measure returns the right way.

According to Thomas Torkelson, Realtor® with Century 21 Triangle Group, one of the most important metrics investors should pay attention to is Cap Rate.

Thomas specializes in helping investors across Raleigh and Johnston County identify properties that deliver the best balance of cash flow and long-term appreciation. In this guide, he breaks down:

✔ What cap rate is

✔ Why it matters in rental property investing

✔ What strong cap rates look like in our area

✔ Where the top opportunities are right now

✔ How investors can boost their returns over time

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🔍 What is Cap Rate? (And Why It Matters)

Cap rate — short for Capitalization Rate — is a simple formula used to compare the income potential of different investment properties.

Cap Rate = Net Operating Income ÷ Purchase Price

Net Operating Income (NOI) includes rent minus ongoing operating expenses such as maintenance, taxes, insurance, and property management.

Cap rate helps investors evaluate:

• How quickly they can recover their investment

• Whether a property will generate strong cash flow

• How risk compares across different areas

• Which markets offer the greatest long-term potential

Thomas puts it this way:

“Appreciation builds wealth. Cash flow buys freedom. Cap rate tells us how quickly you get to that freedom.”

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📍 Cap Rate Trends in Raleigh and Johnston County

The Raleigh housing market is known for high demand and premium pricing. With strong job growth and limited housing supply, cap rates tend to be lower — but appreciation potential is extremely strong.

Inside the Beltline and in areas like Cary or Apex, cap rates often fall into the 3.5%–5% range. That means investors are paying more up front, but the long-term equity growth is exceptional.

Move just slightly outside the city — into Garner, Clayton, and the booming communities throughout Johnston County — and cap rates commonly increase into the 5%–7% range or even higher. In these areas, property prices are more affordable relative to rental income.

Thomas says:

“Johnston County feels like Raleigh did a decade ago, except you can still buy investment properties that cash flow from day one.”

For investors who want both profit monthly and strong appreciation over time, Thomas often recommends exploring neighborhoods:

• Close to I-40

• Near major employers like Novo Nordisk and Grifols

• Adjacent to new growth corridors in Clayton, Smithfield, Archer Lodge, and Benson

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🏘️ Why Johnston County Is an Investment Goldmine

Johnston County has become a magnet for renters due to:

• A lower cost of living while still being close to Raleigh

• Exceptional new housing development

• Major infrastructure improvements

• Expanding commercial growth and job creation

• Surging population — especially in family-friendly suburban communities

Because of this, vacancy rates remain low and rental demand continues to rise — a powerful combination for investor returns.

Thomas sees investors winning big here because:

• Entry prices are attainable

• Cash flow starts strong

• Appreciation curve is climbing fast

It’s the rare moment where a market offers both affordability and strong growth. Smart investors are jumping in before prices match Wake County levels.

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🧮 A Simple Example: Finding Cap Rate in Our Market

Thomas recently helped one of his investor clients purchase a single-family home in Clayton at $300,000. It rents for $2,000 per month, or $24,000 per year.

Annual expenses total about $8,000, leaving $16,000 of NOI.

Using the cap rate formula:

$16,000 ÷ $300,000 = 5.3% Cap Rate

That number alone already beats many properties inside Raleigh city limits — and it doesn’t even count:

• Property value appreciation

• Principal pay-down

• Tax savings

• Rent increases over time

Once those are added, the real ROI is significantly higher.

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⭐ What Properties Perform Best in Today’s Triangle Market?

According to Thomas’s ongoing analysis of local returns, top-performing residential investment opportunities currently include:

• New or lightly updated single-family rentals under $400K

• Townhomes in high-growth commuter corridors like Cleveland, Flowers Plantation, and Garner

• Smaller multi-family properties in transitional areas

• Homes near shopping centers, new schools, and logistics routes

• Properties eligible for Section 8 or rent-by-the-room strategies

The key is local insight about what renters want and what improvements deliver the biggest rent boost.

Thomas has a network of contractors and property management partners who help minimize expenses and maximize income — which directly raises the cap rate.

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📈 How to Improve Cap Rate Over Time

Cap rate isn’t fixed. Smart investors use targeted strategies to increase returns year after year.

With Thomas’s guidance, investors often apply upgrades like:

• Adding modern, durable flooring renters love

• Pet-friendly features such as fenced yards

• Smart home features renters will pay more for

• Improved energy efficiency to reduce tenant turnover

• Cosmetic updates that raise rental value affordably

Even small improvements can boost monthly rent, which quickly increases cap rate and total ROI.

Thomas likes to remind clients:

“The market will grow your equity — but your decisions grow your cash flow.”

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🔑 Why Investors Choose Thomas Torkelson

Investing in real estate isn’t just about finding a house — it’s about creating a plan for wealth.

Thomas brings:

• Expert knowledge of Triangle investment trends

• Cap rate forecasting based on real local rental data

• Access to off-market and investor-friendly properties

• Skilled negotiation to keep acquisition costs low

• Long-term advisory partnership for scaling a portfolio

His investor clients consistently praise his responsiveness, insight, and dedication to maximizing returns.

Whether you’re local or investing remotely, you gain a trusted advisor who knows how to build generational wealth using North Carolina real estate.

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🎯 What’s the “Right” Cap Rate for You?

Every investor has different goals. Thomas begins every partnership by learning whether a client prioritizes:

• Cash flow today

• Appreciation for long-term equity

• A balanced blend of both

• Minimal risk, high stability

• Aggressive expansion and value-add potential

Some investors love the safety and equity growth of a lower cap rate in Raleigh…

Others want strong monthly cash flow in Johnston County’s high-growth suburbs.

Thomas helps you identify the strategy that supports the future you’re building.

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Ready to Capture Strong Cap Rates in Raleigh and Johnston County?

The best investment opportunities don’t sit on the market long — and the Triangle’s growth isn’t slowing down.

If you’re looking to buy, sell, or invest in rental property with strong cap rates and long-term rewards, contact:

📲 Thomas Torkelson

Realtor® — Century 21 Triangle Group

📞 919-633-7425

📧 ThomasTorkelsonRealtor@gmail.com

Thomas will help you find the property that delivers income, equity, and a path toward financial freedom.