North and South Carolina vs Florida
Hey everyone,
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
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
Thank you for the response Logan! I'm going to check it out.
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.
I personally like NC, but I am biased, I live here.
Really, I would try to stick with your same strategy and just apply up here.
If you do coastal STRS there, do them here in Mrytle or Charleston or Carolina Beach.
If you do LTR, then try some of the smaller cities and college towns.
Good luck!
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Lender North Carolina (#2264646)
- The One Brokerage
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I will be going live with a vacation rental in Carolina Beach in the next two weeks .
any tips or insights on occupancy in Carolina Beach or Kure Beach
That would be a question more suited to my better half, @Lorien Rollins.
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Lender North Carolina (#2264646)
- The One Brokerage
- [email protected]
@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.
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Hey Robin!
What type of investments are you looking into? Turnkey, rehabs, strs, ltrs, etc?
As others have mentioned, the coastline is popular with STRs in both NC/SC. Myrtle Beach, Charleston, Wilmington, OBX...
If you are looking into flips or brrrrs I'd suggest outskirts of Charlotte and Round Rock, SC (about 30 min from CLT).
Happy to send you literature on top markets in both of these areas. I just wrote up hot spots so the timing of your post is great.
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!
All the best,
Swati
