According to Cary firefighters, the fire started just before 4:30 a.m. at the townhome located on Storm Court, which is just off Chapel Hill Road in Cary.
The fire was contained to a single townhome, but that unit was connected to two other units--at least one of which sustained smoke damage.
A woman and baby lived in the home that was destroyed, but they were not home during the fire.
"The whole side of the house was engulfed in flames all the way from the bottom of the chimney to the flames," said Sierra Ramsey, who called 911 and warned neighbors about the fire.
"It was like 'boom, boom, boom.' So I ran downstairs and the neighbor was like 'it's a fire,'" recalled Cattoya Cotten, describing Ramsey's warning that prompted her, her husband Jacques, and their two young children to run out of their house, which is connected to the house that burned.
The family waited outside for hours as firefighters and investigators surveyed the property to see the damage the fire caused.
"All the clothes and stuff, all that stuff can be replaced. Bigger picture is making sure everybody's okay," Jacques Cotten said.
The Cotton's home suffered minor smoke damage, which paled in comparison to that of their neighbor, who had a gaping hole on the side and roof of their home.
"It's really sad because we are all needing our places, so to have a fire take place - it's nerve-wracking," said Cattoya Cotten, who is friends with that neighbor.
Firefighters said they do not yet know the cause of the fire. No injuries were reported.