Pros and Cons of investing in rental properties in Fort Mill, SC

[Aalok Gupta]

I am new to investing in real estate. I am looking to buy rental properties in Fort Mill area . Please share the taxes and other cost related to rental in york county. Will it be good investment compared to looking in charlotte area ?

[David Chwaszczewski]

It can be a great place to have rentals, but you need to run the numbers.  Here is a breakdown of the taxes in York County SC from the website:  York County SC Tax

1. Property Tax Value- property tax value or capped value is the value determined at the last reappraisal. A parcel’s property tax value may be located on the Assessor’s GIS Mapping Search website. 

2. Assessment Ratio- The percentage of the property's value which is subject for taxation. The South Carolina Constitution allows all Real Property and Mobile Homes (excluding manufacturers, utilities or railroad properties) to be classified with a 6% assessment ratio. However, if you apply to the Assessor and your property is designated as your “Primary Legal Residence”; then 4% assessment ratio is used. Please call the Assessor’s Office to obtain an application form or download the form on from the County Assessor’s website. 

3. Millage- tax rate or tax levy as set by the schools, county, or city districts expressed in mils (per 1,000). Tax year Millage is found in the table below. 

To calculate tax estimate: 6% property – (1)Property Tax Value x (2)Assessment Ratio = Assessed Value x (3)Millage = Estimated Tax Amount 4% property – (1)Property Tax Value x (2)Assessment Ratio = Assessed Value x (3)(Millage – School Operations millage) = Estimate Net Tax Due Examples: 6% 

Property located in City of Rock Hill property tax value $150,000 $150,000 x 0.06 = 9,000 x 0.4181 = $3,850.20 4% 

Property located in District 1 Newport property tax value $150,000 $150,000 x 0.04 = 6,000 x 0.1758 = $1,054.80

If you have any questions feel free to reach out.  I am a full time investor in this area.

Good Luck!