Anyone renting STR's Downtown Greenville SC?

Question

Curious to know what others think about local restrictions and generally how they are doing with their STR in downtown Greenville, SC?

I have checked occupancy calendars and most are sparse still and I know that has to do with the time of year.

I am doing a 100k rehab on a house in the Augusta Road Area. This is a $250/ft sell price area.

So I might sell, STR, rent to someone that wants to do STR, 1031 exchange into a VR in Pigeon Forge, Cash out refi and buy VR in Pigeon forge and add to rental portfolio as  rent as a high end rental long term. Many options

Although there are many STR's listed on VRBO/Airbnb, I wonder about the STR rental laws that are only enforced by complaints (for now anyway).

Don't want to spend 10k to furnish house and then get shut down.

Morgan Eriksson · Answer

I know a lot of people that do short term rentals and Airbnb on my street, east north street, and I haven’t seen the city crack down in anyone... not to say they won’t If a neighbor complains.

John Underwood · Answer

I checked VRBO and Airbnb, people are doing 2 or 3 night stays downtown, but that goes against the current rules that aren't being heavily enforced.

John Underwood · Answer

I finished the house and have it under contract for $323,000.

It is on MLS. 39 Beck Ave

Adam Drummond · Answer

@John Underwood    Just found this thread.  Any updates with your rehab near augusta rd?  i have a small mill house property not far from augusta and church st that i am wanting to turn to a short term rental.  my house is a few hundred feet outside of city limits.  i did figure out when i check the calenders on airbnb to see how often people are staying booked... it's not always what it seems.  i found several owners who block off dates for themselves, and for family.  It was misleading to be honest.

John Underwood · Answer

I do have a success VRBO on Lake Hartwell.

Mike Dymski · Answer

It's my understanding that STR is illegal in the city limits; so, I believe some investors are doing furnished monthly rentals instead.  I have four units in N Main that would be good for STR but the neighbors would be furious.

Leora Merrell · Answer

@John Underwood

I’ve been looking all around SC since I’ll be 1031ing into 2-3 more STRs this spring. I’ve been looking at Greenville and it seems current STRs do well, but it looks tricky because of laws just like you said. I’ve also been looking at lake properties in SC as well. The investment property tax rates are killing me too when I run some numbers. Have you found that to be a problem too? So between the laws and taxes, SC seems iffy.

John Underwood · Answer

Looking at the numbers people are making here in Greenville I would absolutely make this a Vrbo if laws were to change for the better.

John Underwood · Answer

Nancy,

If I were to do a Master lease for an STR I would require market rent or likely higher due to the higher amount of money a STR operator can make. That or work out a profit split about normal rent. That is the price for someone doing arbitrage and not buying their own place. I am leaning towards keeping it as a high end rental, doing a cash out refinance OR a 1031, both in order to buy a Vrbo in Pigeon Forge. I am not a fan of paying capital gains tax.

Nancy Bachety · Answer

@John Underwood Like your responses, your options are clear stated and thorough. I have been to Greenville, SC as a guest in an Airbnb. It was walkable to downtown etc and priced well for the host. I will be back in Greenville  in April for a week. Great location. I’d imagine the demand is better than seasonal, and being close to you geographically is an asset. But I am not clear on the regs there. It’s interesting you’d rent to someone who would host. What would be your driving factor to choose that over hosting it yourself, since you do that so well now? If your goal is to build your portfolio, I’d vote to hold it, refi, and buy in Pigeon Forge. I am here in PF as I reply, and I am amazed at the growth in 16 months and number of attractions here, not to mention the beautiful mountains. And the surrounding areas. The support staff and businesses abound. I met personally cleaners, the granite supplier and installer, the furniture retailer and supplier, the flooring stores and sales staff, and hot tub suppliers and technicians. I like names to faces and making connections. It is certainly not imperative, but I’m indulging in making those personal connections, because I can.  Master leasing will reduce your yield, but be less work.  Pigeon Forge cabin will increase your cash flow. Heck, buy in PF and I’ll rent it from you!

Anyone renting STR's Downtown Greenville SC?

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