Struggling First-Time Homebuyer / Aspiring Investor
New to Real Estate · SC · Member since 2023 · 6 posts · 4 votes
Hello! I am fairly new to the BP community, and this is my first post. Currently reading Joshua Dorkin and Brandon Turner's How to Invest in Real Estate (and loving it!).
I am in the Charleston, SC, area and have been in the market as a first-time homebuyer for a while now. I grew up in Charleston and currently stay with my parents, who rent one side of their duplex on the beach as a vacation rental. Their success with their short-term rental has inspired me to start my real estate investing journey; I'd like my first purchase/primary residence to be cash-flowing.
But I've had zero luck in the last nine months. Prices are outrageous and competition is crazy high.
Does anyone have an outlook on the Charleston market for the rest of 2023? I know we're typically behind other regions when it comes to trends in the real estate arena, but I'm wondering if anyone is seeing the light at the end of the buyers' tunnel.
And if anyone is having success in this area at this time, would you mind sharing any helpful tips? I know there has to be a way....
Thank you in advance!
Hey Emily,
DM me further if you have any questions, however I will give my 2 cents -
Charleston will continue to be a hot market forever because of the location and tourist attraction. Plus there is a lot of money in Charleston in general.
For your primary, just buy a single family residence with 3-5% down and get a roommate or two to pay you rent each month. They basically rent a room. Ideally you want friends (not random people). The other option is to purchase a 2-4 unit and house hack using an FHA loan. Basically putting 3.5% down and having tenants pay you rent. Those are the best ways to do this without a ton of hassle.
Great Question!
Hey Emily,
DM me further if you have any questions, however I will give my 2 cents -
Charleston will continue to be a hot market forever because of the location and tourist attraction. Plus there is a lot of money in Charleston in general.
For your primary, just buy a single family residence with 3-5% down and get a roommate or two to pay you rent each month. They basically rent a room. Ideally you want friends (not random people). The other option is to purchase a 2-4 unit and house hack using an FHA loan. Basically putting 3.5% down and having tenants pay you rent. Those are the best ways to do this without a ton of hassle.
Great Question!
Hey Emily,
DM me further if you have any questions, however I will give my 2 cents -
Charleston will continue to be a hot market forever because of the location and tourist attraction. Plus there is a lot of money in Charleston in general.
For your primary, just buy a single family residence with 3-5% down and get a roommate or two to pay you rent each month. They basically rent a room. Ideally you want friends (not random people). The other option is to purchase a 2-4 unit and house hack using an FHA loan. Basically putting 3.5% down and having tenants pay you rent. Those are the best ways to do this without a ton of hassle.
Great Question!
Hey Emily,
DM me further if you have any questions, however I will give my 2 cents -
Charleston will continue to be a hot market forever because of the location and tourist attraction. Plus there is a lot of money in Charleston in general.
For your primary, just buy a single family residence with 3-5% down and get a roommate or two to pay you rent each month. They basically rent a room. Ideally you want friends (not random people). The other option is to purchase a 2-4 unit and house hack using an FHA loan. Basically putting 3.5% down and having tenants pay you rent. Those are the best ways to do this without a ton of hassle.
Great Question!
Yes, I am afraid that is the decision a lot of people have to make, especially with expensive/coastal areas. Come to Charlotte, NC!! lol thats where I am located.
Hey @Emily Peters, I also live and invest in the Charleston area and I don't see things cooling significantly for buyers in the next 12 months.
But I agree with Jon that house hacking is the best way to get started. The property I bought when I moved to Charleston was a duplex in Park Circle that I house hacked with a 3.5% down FHA loan. At the time, I didn't really feel like I was getting a "deal" on it and the market was still very competitive. For 2 years the income from the other side covered the majority of my mortgage, and after we moved out we turned our unit into an Airbnb and it has been performing extremely well. It has also appreciated significantly and allowed me to pull a HELOC on the property to use for other opportunities. It has put me in a great position in just a few years, and at the time I felt like I was overpaying for it and almost didn't buy it which seems crazy to me now.
In the Charleston market today, it's rare that your first deal will be a homerun in Year 1. But if you hold onto the property, its year 3,4,5, and beyond is where you will see the benefits. I would just make sure it cashflows as a pure long term rental (non owner occupied) so then you have options after you buy it. There are still some solid house hacking options in Charleston, and with some great owner occupied loans you can get into these properties for fairly low money out of pocket.
If you have any other questions about anything feel free to message me, happy to help!
@Emily Peters I agree with what these other folks have said. I would also suggest chatting with @Brandon Bartley if you'd like help with the process. Brandon is one of our best agents and takes really good care of agents. He also watches the market to try to stay up to date with what's happening.
Hey @Emily Peters, I also live and invest in the Charleston area and I don't see things cooling significantly for buyers in the next 12 months.
But I agree with Jon that house hacking is the best way to get started. The property I bought when I moved to Charleston was a duplex in Park Circle that I house hacked with a 3.5% down FHA loan. At the time, I didn't really feel like I was getting a "deal" on it and the market was still very competitive. For 2 years the income from the other side covered the majority of my mortgage, and after we moved out we turned our unit into an Airbnb and it has been performing extremely well. It has also appreciated significantly and allowed me to pull a HELOC on the property to use for other opportunities. It has put me in a great position in just a few years, and at the time I felt like I was overpaying for it and almost didn't buy it which seems crazy to me now.
In the Charleston market today, it's rare that your first deal will be a homerun in Year 1. But if you hold onto the property, its year 3,4,5, and beyond is where you will see the benefits. I would just make sure it cashflows as a pure long term rental (non owner occupied) so then you have options after you buy it. There are still some solid house hacking options in Charleston, and with some great owner occupied loans you can get into these properties for fairly low money out of pocket.
If you have any other questions about anything feel free to message me, happy to help!
Hey Brandon, thank you for your insight! This is really helpful.
Do you feel the Park Circle area is safe? I’ve noticed any multifamilies that come on the market there lately have been quickly snatched up. I’m wondering if we’ll see more foreclosures soon, because I may need to be looking off-market.
@Emily Peters I agree with what these other folks have said. I would also suggest chatting with @Brandon Bartley if you'd like help with the process. Brandon is one of our best agents and takes really good care of agents. He also watches the market to try to stay up to date with what's happening.
@Emily Peters as already said, there is no market cool-off in the Charleston, SC, area in the near future. But hard work will pay off; if you are delicate just an hour a day looking for a possible property, you will eventually have success. If the right property comes your way, be prepared to have financing, including pre-underwriting ready. Get familiar with the SC agreement to buy and sell Form 310, asked all questions you have now, and ask your realtor to have the contract already pre-written so you can make an offer in minutes.
@Emily Peters as already said, there is no market cool-off in the Charleston, SC, area in the near future. But hard work will pay off; if you are delicate just an hour a day looking for a possible property, you will eventually have success. If the right property comes your way, be prepared to have financing, including pre-underwriting ready. Get familiar with the SC agreement to buy and sell Form 310, asked all questions you have now, and ask your realtor to have the contract already pre-written so you can make an offer in minutes.
@Emily Peters as already said, there is no market cool-off in the Charleston, SC, area in the near future. But hard work will pay off; if you are delicate just an hour a day looking for a possible property, you will eventually have success. If the right property comes your way, be prepared to have financing, including pre-underwriting ready. Get familiar with the SC agreement to buy and sell Form 310, asked all questions you have now, and ask your realtor to have the contract already pre-written so you can make an offer in minutes.
When it comes to properties in a multiple-offer situation, every little detail counts. To give your offer an edge, consider having your agent include the fact that your lender has already conducted pre-underwriting and thoroughly verified all sources of income. Moreover, the lender is even willing to make a phone call to confirm this information. This approach can give your offer priority over others that only provide a more traditional pre-approval letter. By demonstrating the extra level of preparation and commitment, you increase the chances of standing out among competing offers and positioning yourself as a strong and reliable buyer.
Welcome @Emily Peters! Your dilemma is the reason a lot of investors work with wholesalers. Wholesalers search for deals as their full time job so that investors don't have to. Licensed agents also have access to more inventory. I would recommend getting in contact with wholesalers in Charleston and getting on their email lists. There's also a lot of Facebook groups where people post off market properties. New Western hosts quarterly meet ups for real estate investors and professionals. They're definitely worth checking out!
Are you looking for something turnkey, or are you comfortable with a fixer upper? A fixer upper will take more work and time before it starts cash flowing, but you'll only be competing with investors to purchase the property as opposed to everyone in the open market. You can purchase an off market property with a hard money loan (or cash if you have it!), hire a contractor to repair it using your loan, rent it out, and refinance it to a lower interest rate. Depending on the condition of the property, you could have a renter in there within 6 months of purchasing it.
You don't have to leave Charleston to start investing!
Hi Emily - Sounds like you are taking the right steps to start investing. I am not too far away in Charlotte and am looking at a property in Charleston right now. I will actually be down there next week, so let me know if you'd like to connect. I'd love to help and/or point you in the right direction!
Hi Emily - Sounds like you are taking the right steps to start investing. I am not too far away in Charlotte and am looking at a property in Charleston right now. I will actually be down there next week, so let me know if you'd like to connect. I'd love to help and/or point you in the right direction!
Hello! I am fairly new to the BP community, and this is my first post. Currently reading Joshua Dorkin and Brandon Turner's How to Invest in Real Estate (and loving it!).
I am in the Charleston, SC, area and have been in the market as a first-time homebuyer for a while now. I grew up in Charleston and currently stay with my parents, who rent one side of their duplex on the beach as a vacation rental. Their success with their short-term rental has inspired me to start my real estate investing journey; I'd like my first purchase/primary residence to be cash-flowing.
But I've had zero luck in the last nine months. Prices are outrageous and competition is crazy high.
Does anyone have an outlook on the Charleston market for the rest of 2023? I know we're typically behind other regions when it comes to trends in the real estate arena, but I'm wondering if anyone is seeing the light at the end of the buyers' tunnel.
And if anyone is having success in this area at this time, would you mind sharing any helpful tips? I know there has to be a way....
Thank you in advance!
Welcome Emily!
Coastal markets are hard, but I think the best way for you to get started would be a househack. If you are going to primary residence it, then make sure your personal financial picture is squared away. Credit, debt, etc. For roommates, Charleston has some bigger colleges yes? Thats where I would look first. I had a few friends go to school there, and they paid a healthy amount in rent even a few years ago ('19-'21)