Charleston SC - Submarkets (Wagener Terrace, Mount Pleasant, Daniel Island, James Island, Crosstown, etc)

15 Replies

Hey BP! Hope 2015 is off to a great start for everyone.

I'm looking for some information on Charleston SC submarkets. I'll be investing in my first buy-and-hold within the next six months and am looking to dial in my search on the hottest submarkets in the area.

I'm well versed in the "Inside Crosstown" area, and this would be my first choice if I could find a cash flowing ~1% deal. Unfortunately those have been few and far between. As such, I would like to expand my search and have heard great things about the "Outside Crosstown"/Wagner Terrace markets. It also appears that Mount Pleasant has been poised for growth and has really exploded.

While I am focused on A-B grade neighborhoods to strike a balance between cash flow and minimize risk of vacancy/low quality tenants/& stagnant depreciation, I'm also interested in what investors are up to in lower grade markets (Goose Creek, Moncks Corner, West Ashley, North Charleston, etc.) I'm less familiar with these markets and recognize that there are high-end areas in each, so I hope not to offend anyone. I know that there is more cash flow potential further from the peninsula.

In summary, I am looking for insights into the Charleston SC submarkets so I can narrow my search and ultimately find a buy-and-hold property that will generate positive (~$100 per door) cash flow in a "booming" market. Thank you in advance for your insights!

My very best,

Jeff

@Jeff L.  

  I am not a buy and hold guy.. but I have been doing business in Charleston for the last 18 months.. I found properties at Park circle N Charleston to be a nice balance compared to the dollars you have to spend closer to downtown .

coming from the west coast like I do.. It was sticker shock for sure.. Not compared to our prices but compared to all other markets in the south.  Even the lower end stuff that you would buy for 20k a door or so in other markets is 60 to 80 there.

I am doing new construction and have financed a few flippers that have done very nice.

But different price points from what I usually do in the south...As stated.

Give Park Circle a look see...

@Jeff L.  

  and if you can get something in OLD Mt. Pleasant I would go for that.

I did my first flip there and did VERY well... price point was 220k to buy 60k to rehab  380k on the exit.  It was a house I would never have paid more than 100k in any other southern market

@Jay Hinrichs  is absolutely right about Park Circle.  If you find a property in Park Circle and the numbers work, move quickly!  I am not a buy-and-hold guy, but I network with 20-25 buy-and-hold investors in Charleston on a regular basis, and I wholesale my excess contracts to them.  We are flipping a house in Park Circle now, and sold one at wholesale less than a month ago.  I showed the wholesale property it to 4 investors the day after I signed the contract to buy and assigned the contract to the first investor (landlord) who looked at it.  James Island and West Ashley offer lots of deals in the midrange, and North Charleston is the best low-end rental market IMHO.   Goose Creek, Ladson, Hanahan, and Summerville are hit-and-miss.  Do your homework.   Jay is also right about the Old Village of Mt. Pleasant.  My wife and I rented there while looking for our permanent residence in Mt. P.  Deals are rare in the OV, but the rents and margins are great.  @Jeff L.  send me a private message with your email address and phone number and I will be happy to add you to my buy-and-hold wholesale buyer's list.  I called on 3 properties today and will look at 2 of them tomorrow and one on Saturday.  1 to flip and 2 to wholesale.   We bought/sold 3 wholesale properties in the months of November & December.   My goal is to wholesale 1 Charleston area property per month in 2015. Some of these will make great rental properties for you.   Keep in touch.

@Russ Scheider  

  Thanks for chiming in Russ... remember my wife and I will be in town 13th thru 16th like to meet up !!  I am trying to find my video of 46 Aiken.. Although Karen Margrave posted it on BP for me.. not sure where.. but that one turned out nice.

@Jay Hinrichs  I think I saw the 46 Aiken video on Troy's YouTube page?  Natalie and I will plan to meet up with you and your wife while you are in town.  Dinner is more fun, but we may have to do lunch since we have school-aged children.  Lets talk next week.

Jeff, I have recently transitioned our focus to Buy and hold and cash flowing rentals here in Charleston. I have been focusing my attention within a 1 hour radius of Charleston to find  deals. I spent a good bit of time looking for 2% deals within the city limits with little luck. But for 1% i would suggest  all of Mount Pleasant. I have a partner that strictly buys homes in the newer neighborhoods off of 17 and  41 (dunes west area) buys for $200,000 rents  for $2200 month. Mount Pleasant has the best Public schools around and attracts a lot of people for that reason alone. I personally Like the growth of Summerville/Dorchester 2 but is a little outside of the area you mentioned. Charleston is also a challenging city in generaL to find multifamily rentals. Feel free to call or email me if you have any questions.

Check out came Cane bat plantation up-and-coming area

Check out came Cane bay plantation up-and-coming area. Hottest section in the Charleston market

Check out Cane bay plantation up-and-coming area. Hottest area in the Charleston market sorry for the previous typos

I like areas on the fringe of park circle in North Charleston for a mixture of cash flow and potential appreciation. It is definitely possible to find close to a 2% deal in this area although it it not an A-B neighborhood. 

@Eric Walsh  

  depends on the street in Park circle. as I posted above I sold a new build in Park circle for just shy of 290 and that was an A property.  I like this little spot for buy and hold.. I am not a buy and hold investor but compared to a lot of others markets in the deep south I think this one has merit..

@Eric Walsh  

  my point being were else in the south can you have cash flow rentals and one block over have 300k homes.  pretty unique that area

Agreed.  Park circle is an interesting area.  Just watched your video for Wasp St...looks good.

@Jay Hinrichs  Loved the video of your new construction in park circle. Keep up the good work. I'll take a closer look at buy-and-holds in this area and Old Mount P. Both look promising.

@Russ Scheider  Sent you a PM. Really appreciate the advice and look forward to staying in touch.

@Tony Conway I've been keeping my eye on Mount P. and couldn't agree more. Thanks for chiming in.

@Thomas Haskell  Thanks for the tip, Thomas. Ironically, I've heard of Cane Bay through their development team MeadWestvaco, bet definitely need to take a closer look

@Eric Walsh  Great advice. After three recommendations, I'll be sure to include Park Circle in my search. Thanks.

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