South Carolina Rental investment

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South Carolina Rental investment

Monica C.
Realtor · Boise, ID · Member since 2022 · 4 posts · 4 votes

Good morning All! I am construction pm based in California, looking to move to South carolina(family out there is getting older). I would like to secure 2 LTR in next 2 years so I have some established cash flow when I move to South Carolina.

I just had my annual appt with my tax guy and he advised now is a HORRIBLE time to get into real estate and that I'm better off in stocks. I have no desire to mess with the stock market and every desire to renovate distressed housing as my new dayjob in South Carolina, since I already work construction (total passion of mine) and have a lot of carpentry skills required for building sweat equity.

Question is, should I continue to seek out deals to get this process started (buy in next 6 mos) or should I sit on my savings another 6 months and reevaluate? I have 30k sitting in the bank, 710 credit score, 18% DTI, and the markets I'm looking into now are Hilton Head Island, myrtle Beach, Charleston and Columbia (inland).

He also advised that any long distance property manager is going to screw me over and honestly that really took the wind out of my sails hearing that.

If anyone has referrals for reliable, productive property managers and realtors in these markets, that would be greatly appreciated!

Thank you in advance for your time and sharing your knowledge.

Kind regards,

Monica

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Coury Cast
Rental Property Investor · Summerville, SC · Member since 2011 · 19 posts · 6 votes
4y

@Monica C. I agree with Grant. Definitely think you should go for it. My tax accountant has never discouraged me from investing in real estate. I just purchased a LTR in Columbia last year and I have no regrets. I have property manager contacts in both Charleston and Columbia. Feel free to ping me.

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  • Grant SchroederPro Member
    Lender · OR ID AZ CA WA CO NV TN MT · Member since 2018 · 599 posts · 312 votes
    4y

    @Monica C. it sounds like you might need a new tax guy! Whether you jump into LTRs in CA and SC, there is never a bad time to get started in real estate. A good CPA should be well versed in REI and not pessimistic about the goals you have set for yourself. If you want to jump into SC LTRs in the next 6 months, I would use this time to build your team there of people you can trust. I would encourage you to go for it!

    [email protected]541-231-1256
    1Reply
  • Ted R Bates
    Investor · Hilton Head Island, SC · Member since 2018 · 1 post · 0 votes
    4y

    I think it would be challenging to get cash flow on HHI.  I would venture to say any benefits gained would be mostly in appreciation, cash flow not so much.  

    0Reply
  • Coury Cast
    Rental Property Investor · Summerville, SC · Member since 2011 · 19 posts · 6 votes
    4y

    @Monica C. I agree with Grant. Definitely think you should go for it. My tax accountant has never discouraged me from investing in real estate. I just purchased a LTR in Columbia last year and I have no regrets. I have property manager contacts in both Charleston and Columbia. Feel free to ping me.

    2Reply
  • Monica C.
    OP
    Realtor · Boise, ID · Member since 2022 · 4 posts · 4 votes
    4y
    Originally posted by @Grant Schroeder:

    @Monica C. it sounds like you might need a new tax guy! Whether you jump into LTRs in CA and SC, there is never a bad time to get started in real estate. A good CPA should be well versed in REI and not pessimistic about the goals you have set for yourself. If you want to jump into SC LTRs in the next 6 months, I would use this time to build your team there of people you can trust. I would encourage you to go for it!

    Grant, I really appreciate your encouragement! Giving my tax guy a benefit of doubt, he has known me for 12 years to be a "stable saver" and i think the idea of draining my savings into a new venture that excites me and changing career directions was alarming for him. Although, I do love the idea of someone who can support my goals and help pave the way rather than adding mental road blocks. Thanks again for your feedback!

    1Reply
  • Monica C.
    OP
    Realtor · Boise, ID · Member since 2022 · 4 posts · 4 votes
    4y
    Originally posted by @Coury Cast:

    @Monica C. I agree with Grant. Definitely think you should go for it. My tax accountant has never discouraged me from investing in real estate. I just purchased a LTR in Columbia last year and I have no regrets. I have property manager contacts in both Charleston and Columbia. Feel free to ping me.

    Coury, I will definitely take you up on that! Thank you very much for taking the time to  offer your contacts. Talk to you soon!

    0Reply
  • Troy GandeeBusiness Member
    Real Estate Broker · Charleston, SC · Member since 2013 · 795 posts · 454 votes
    4y

    @Monica C. It's interesting he would discourage RE over the stock market in this age. RE is far more predictable than the market, imo. 

    There are still a lot of opportunities to invest here in SC. However, it is extremely competitive right now. It's even harder for out of state buyers who are unfamiliar with different areas and do not have contacts yet. In Charleston, for example, we have less than 1,000 single family homes available for the tri-county area. Of that, about 1/2 is new construction. This is the worst inventory shortage we've seen and isn't likely to improve soon. We may see a surge in listings this Spring, but competition also spikes, so it will likely be about the same.

    My suggestion would be to get moved here, then find a market in close proximity and start hunting. Wait until you can physically drive these areas and walk the homes before you start making offers. You don't always have to do that, but newer investors should be more diligent with their first properties.

    1Reply
  • Monica C.
    OP
    Realtor · Boise, ID · Member since 2022 · 4 posts · 4 votes
    4y
    Originally posted by @Troy Gandee:

    @Monica C. It's interesting he would discourage RE over the stock market in this age. RE is far more predictable than the market, imo. 

    There are still a lot of opportunities to invest here in SC. However, it is extremely competitive right now. It's even harder for out of state buyers who are unfamiliar with different areas and do not have contacts yet. In Charleston, for example, we have less than 1,000 single family homes available for the tri-county area. Of that, about 1/2 is new construction. This is the worst inventory shortage we've seen and isn't likely to improve soon. We may see a surge in listings this Spring, but competition also spikes, so it will likely be about the same.

    My suggestion would be to get moved here, then find a market in close proximity and start hunting. Wait until you can physically drive these areas and walk the homes before you start making offers. You don't always have to do that, but newer investors should be more diligent with their first properties.

     Hey Troy! Thank you very much for the insight. Have a great day!

    1Reply
  • Austin Grant McDowellBusiness Member
    Realtor · Greenville, SC · Member since 2015 · 88 posts · 43 votes
    4y

    @Monica C. @Michael Weigum lives in the Myrtle Beach area and could for sure be of assistance for you out that way!!

    Best of luck with your home search and welcome to SC (soon)!!

    McDowell Real Estate Team4.943 Reviews
    WebsiteView Page
    1Reply
  • Chris Rosenberg
    Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 209 posts · 61 votes
    4y

    @Monica C. Hey Monica. For a pm in Myrtle beach I highly recommend Pete Schmidt. He’s a BP member. As far as the stocks vs real estate debate, who knows. I have my stock buy orders ready (at much lower prices than they are now) and I’m also still buying real estate and refinancing a few properties to lock in some good interest rates and unlock some equity. I think it’s a great time to refinance, but as far as new purchases the inventory has been so tight here I’ve only bought off market. Competing long distance here against local investors will be extremely tough, you will have to pay up and all cash. Unless you want to pay market price for a multifamily that’s probably doable but single family is on fire. 

    1Reply
  • Michael Weigum
    Real Estate Agent · Santa Rosa Beach, FL · Member since 2019 · 112 posts · 116 votes
    4y

    Hi @Monica C.,

    I live in Surfside Beach S.C. and specialize in oceanfront investment properties. I personally have 2 condos that I Airbnb. My firm also does property managment. There is a high demand out here for long term rentals right now. Lot's of new construction going on, but people need places to stay while their houses are being built. If you can get a good property right now, you definately could get it rented right away. Please let me know if I can answer any questions. I'd be happy to help you in your search. 

    1Reply
  • Ron WilliamsBusiness Member
    Real Estate Broker · Hilton Head Island, SC · Member since 2018 · 72 posts · 49 votes
    4y

    Monica:

    I would agree with what's been stated above. As an investor and realtor here in Hilton Head, I can tell you with your current cash position you would be best off doing a couple of flips here first then look for a couple of holds. We have lenders that will loan based on ARV, so you can keep more of your cash in your pocket if necessary. The long term rental market here is very good, but the entry point is high. Another great option for you would be to find some commercial properties you could repurpose to affordable housing that could generate some very good cash flow. Just a couple of thoughts for you.

    Ron

    0Reply
  • Jacob D Adamczak
    Charleston, SC · Member since 2018 · 182 posts · 73 votes
    4y

    @Monica C.  I have a great realtor and property manager I use in Charleston and am happy to pass along their information. Having a great team in place is huge- they helped me start from 0 and get my first few investment properties and helped me learn along the way.  My realtor is also well versed in the off market stuff, to help alleviate the competition issue. The rehab aspect in my opinion is the most difficult part, but that is your strong suit so that puts you in an advantageous spot.

    1Reply
  • Joshua Hope
    Member since 2023 · 3 posts · 0 votes
    2y

    Agreed

    0Reply
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