My family and myself have been investing in Pensacola, Florida for the past decade or so. With the crazy insurance costs we're looking to switch markets and were wondering if anyone would offer insights on the costs of investing in North or South Carolina. Any input would be awesome! Thanks
Rental Property Investor · Charlotte, NC · Member since 2019 · 57 posts · 53 votes
2y
I have (or have had) rentals in NC, SC, and Fla. Our homes around Charlotte, NC, have increased in price and rents significantly in recent years (thanks to the many newcomers). So much growth has made investing very easy to succeed.
Florida has been painful because of the insurance. On one property our insurance went from $2k/year in 2022, to $4k in 2023, to $9k in 2024. Having few insurers operating in Florida has made it difficult to shop around, especially for short-term rentals.
SC has a lot of great investment opportunities, but as another contributor posted above, the taxes for non-SC-based investors is higher than for residents. This tax rate difference is particularly painful when homes are valued at $500k+. Also, there is another tax non-resident investors must pay if they sell the property.
For the reasons listed above, we've decided to focus our investments in NC. The state has three distinct personalities (mountains, piedmont, and ocean), which limits the risk of having all of your eggs in one basket. That's my 2-cents worth. Hope it's helpful.
Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
2y
Hi Robin,
I do a fair bit of business as a lender in South Carolina; a lot of short-term rental investors tend to focus on the Charleston & Myrtle Beach areas, but if you are looking for properties that are still reasonably priced and don't mind some renovations, Columbia can be a great choice
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
2y
Columbia, Greenville, and Spartanburg are still affordable and mostly doable for LTRs. Bluffton/Beaufort/HHI are growing rapidly but still relatively doable compared with Charleston and the coastal areas. STRs are super popular in Charleston, but there's a lot of regulation now that's only getting worse, as well as some saturation issues.
HOI costs will be higher east of I95 in SC for the most part. Prob around 50% or more of the properties in the Lowcountry will need flood insurance, also.
DYOR on property taxes in SC. There's a stark difference in tax rates between legal residences (primary residences) and investment properties/second homes.
I'm a Florida-based lender with operations spanning across the Carolinas. When considering investment properties in South Carolina, it's crucial to pay close attention to property taxes. Unlike primary residences, investment properties in SC are subject to higher tax rates. This factor can significantly impact your cash flow potential, especially if you're contemplating a buy-and-hold strategy. It's a point worth considering as you navigate your investment decisions.
That said, investing in these regions holds great promise. Both states rank in the top 10 for population growth since 2020, indicating robust economic prospects. I foresee continued growth in these markets, presenting numerous investment opportunities for savvy investors.
Should you have any inquiries regarding these markets or require assistance, I'm always available to offer guidance.
Hi Robin - I moved from Florida to North Carolina. You are right that the insurance costs are getting out of hand! You may want to look at AirDNA to get analytics on competition, investability, occupancy rates, etc. It may give you market rates on rental properties as well.
Property Manager · Charlotte, NC · Member since 2022 · 138 posts · 87 votes
2y
@Kunal Mishra I've sent a connect request, if you'd like to chat market trends in Carolina/Kure beach!
@Robin Hopkins I have 1 LTR in Denver, NC and it was a wonderful decision. My fiance and I intend to purchase at couple more, we love NC! There are some great markets in SC too. Feel free to connect.
Real Estate Agent · Charleston, SC · Member since 2023 · 26 posts · 4 votes
2y
Hello from beautiful Charleston, SC! What sort of information are you seeking? I'm happy to set up a phone chat sometime so I can help you get a feel for the area. Also, depending on what type of investing you are doing, differnet parts of town tend to lend better for different types of investing (ie: buy & hold vs flip). Best wishes to you in your investment endeavors!
Rental Property Investor · Charlotte, NC · Member since 2019 · 57 posts · 53 votes
2y
I have (or have had) rentals in NC, SC, and Fla. Our homes around Charlotte, NC, have increased in price and rents significantly in recent years (thanks to the many newcomers). So much growth has made investing very easy to succeed.
Florida has been painful because of the insurance. On one property our insurance went from $2k/year in 2022, to $4k in 2023, to $9k in 2024. Having few insurers operating in Florida has made it difficult to shop around, especially for short-term rentals.
SC has a lot of great investment opportunities, but as another contributor posted above, the taxes for non-SC-based investors is higher than for residents. This tax rate difference is particularly painful when homes are valued at $500k+. Also, there is another tax non-resident investors must pay if they sell the property.
For the reasons listed above, we've decided to focus our investments in NC. The state has three distinct personalities (mountains, piedmont, and ocean), which limits the risk of having all of your eggs in one basket. That's my 2-cents worth. Hope it's helpful.