Should I invest in Spartanburg, SC

5 Replies

Any insights on economic development, population movement and jobs diversity for Spartanburg, SC will be much appreciated.

I have already used city-data for these markets, but the information is dated. Please suggest some neighborhoods, where I can find B or C class homes.

Thank you

@Arnab Sinha ,

I looked heavily into Spartanburg about three years ago.  My strategy was cashflow and the hopes of appreciation.  I have gotten great cashflow.  I purchased two single family homes and one small apartment building, as well as two mobile home parks.  The houses were in decent shape and needed no immediate work.  They came with tenants and both have the same tenants as when I purchased the houses.  Other than minor normal repairs, I've not had to spend any extra money.  Both could use a paint and some flooring when the tenants move out.  There are good houses to be purchased in C and B class neighborhoods and good, blue color tenants that will take care of your house.  There are also drug dealers and criminals in these areas.  You really have to drive street by street to see what kind of tenants you will attract.  I've got great properties with trash just a street or two over.

As far as appreciation, I can't say I've seen any in the areas I invest in.  My properties are close to downtown and not in the outlying suburb areas.  I'm finding houses from wholesalers in the mid $20,000's.  This price point really hasn't changed in three years.  If you talk to locals, they will tell you not to count on appreciation either.  This kind of surprises me, since the downtown area has undergone a lot of improvement.  I've seen a lot of larger companies bring their regional offices into Spartanburg and large manufacturers in surrounding areas.

Again, I'm not investing directly downtown nor the nicer suburbs outside of Spartanburg, but a strategy of buying low and getting cashflow seems to be the play.  Appreciattion will be a bonus, but I wouldn't count on it.

@Arnab Sinha   One house in on Pierpont Ave by the hospital and the other is Jackson Rd around the Arkwright area.  The apartment building in off Howard (which people are really scared of, but I've had great tenants).  I'd stay away from Saxton.

Sometimes you just have to be patient and wait for the right one.  Also, there is an upstate CREIA yahoo group where a lot of deals pop up.

@Arnab Sinha , I invest heavily in Greenville. If you don't know this area well, there is a lot of land. Which means that when the growth finally does decide to hit Spartanburg with the force it has hit neighboring Greenville, new construction will be everywhere. We invest primarily in Greenville and its growing suburbs like Greer, Mauldin, Easley, etc. The main reason is that my research led me to a similar conclusion as Derek. 

That said, I did talk to a well seasoned Spartanburg realtor who said that some of his investors are purchasing new construction as rentals in areas like Boiling Springs (just north of Spartanburg) where the schools are better. His investors are hitting close to the 1% rule or slightly under for new homes. I've seen many 1.5% to 2% opportunities in this area for B and C areas. And if you look really closely, you'll find 3%. Lots of manufactured homes in this area will yield 2 to 3% rule all day long if not higher.