Seeking Charleston REI Tips: House Hacking & Investment Insights

[Kyle McShea]

Hey BP community,

I am brand new to REI and wanted to take the time to ask some questions to learn more about the market.

First and foremost I have been looking at properties in West Ashley & Johns Island to house hack.
- Looking for rental friendly area
- Want to be close to the beach / downtown Charleston
- I am more interested in Johns Island due to tax dollars being put into that area

#1 What does a good Charleston deal look like?

I have surfed the web and reviewed reddit posts, YouTube videos, talked with family members, and more and I've come down to this definition.

- 20% equity after rehabbing
- 4% Cash on Cash return
- 5% Appreciation rate

What are your thoughts on this base definition and how does it apply to Charleston? I understand the appreciation in Charleston over the last year was 9.8% so does that change the other pieces?

I've also noticed West Ashley / Johns Island struggles to reach the 1% rule.
Are others seeing this as well or should I find an agent who is in the loop w/ off-market opportunities?
Or would I find better opportunities to reach the 1% rule in areas like Summerville / North Charleston / etc?

#2 House Hacking Room Rental Rates (West Ashley / Johns Island)
I am looking to house hack and I would like to know what does the going rate for a 1 bedroom 1 bathroom usually go for?
I've seen a range of $1,000 - $1,300 based off Facebook Marketplace + Furnished Finder, but what are the numbers you are seeing?

#3 North Charleston areas to invest
I understand that Park Circle has been gentrified over the past couple years but it looks like it has gone through its up and coming phase. Does anybody have ideas to where other areas in North Charleston are gaining traction?

I appreciate any information / advice, thank you in advance!