Who here invests in South Carolina? If so, what are your thoughts on the market in general (and policies of being a landlord in the state). Can you share any market insights or other reading materials to help me learn about the area?
Any info on weird/quirky/difficult laws also appreciated.
@Daniella Steinberg hey daniella. What part of South Carolina are you looking to invest in? I invest in the upstate. Rental market is good in my opinion. When running ur numbers keep an eye on ur taxes. In sc taxes are 6% for rental properties. Feel free to ask any questions you have. I have a few rentals in the upstate.
@John Hovanec Thank you. I am looking around Columbia and surrounding areas. Good call about the taxes, can you explain what you mean with 6% tax on rental properties? Is this an estimate for the property tax for non-owner owned properties. That is quite high
@Daniella Steinberg it’s very high. I’ll give you an example. My primary home was mistakenly taxed at non owner occupied and I was charged around $7,000. Once it was straightened out and taxed correctly it was down to about $1,800. So if I rented this house rather than owned it that’s the difference
@Ashley O'Hearn Thank you for the information. Do you know if there is a way to check or estimate in advance? Does the county clerk keep this information?
@Daniella Steinberg Columbia has some good areas and some not so good areas. Owner occupied is 4% taxes. Non owner occupied is 6%. Some county website have an estimator online or you can call the county tax accessor and they will tell you. It does make a big difference. There’s a few people on here that focus on Columbia. They will probably reply later on. I’ve wanted to buy in that area but haven’t made a move that way yet.
@John Hovanec Thank you - I have found some county resources for online tax estimation and will dig in!
If you are interested in the potential for vacation rentals, check out the Myrtle Beach market. Also for SFR, this area is expected to grow. US News & World Report just ranked the MB area as the fastest growing market in the US, number 35 for the best places to live, and number 11 for the best places to retire. We have a lot of investors in this market, but I admit it is competitive right now. If MFR is your thing, there are some available opportunities as well.
@Daniella Steinberg - great state to invest in! Landlord friendly, solid economy made up of large employers (manufacturing, universities, healthcare, tourism) and growth like much of the south-east. Definitely need to watch the taxes as these can double or triple from it being a primary residence at the new investment property tax rate! Would also recommend checking flood zones and areas subject to flooding as this is becoming an increasing problem.
As @Jay Faulkenberry says, Myrtle Beach has been very good to many people. If you have experience in STR, you have a leg up on many inexperienced investors just buying things with terrible numbers. Many, or most, don't buy on established cash flows but instead just have the real estate "sparkle" that so many have right now.