I am looking at purchasing a 4 unit building or larger in South Carolina
Any have any suggestions on the range of price I should pay, what are things going for out there
Any suggestions of area I should stay away from
Any suggestions of areas I should focus in on?
I am an investor and Real Estate Agent in Columbia SC. Multi-Family pricing in SC can vary, there's not much on the market right now but I'd be more than happy to email you the current listings! As far as the area goes student housing is big in SC. We have USC in downtown Columbia, Winthrop in Rockhill, Clemson in the Upstate, as well as USC Beaufort and College of Charleston in the Lowcountry. There is also Coastal Carolina University in Myrtle Beach SC, these are areas you may want to focus on as the colleges will bring renters.
Columbia is a great place to invest since a dollar goes a long way, relative to other markets. Population is expected to triple in ten years so it is a fantastic time to buy although as Ms. Beauchemin points out, supply is spotty. My team's day consists of trying to get owners to consider selling properties that most of them are perfectly happy continuing to make money on. It's a challenge.
I had an eighty-year-old native of Columbia grouse to me one day recently about an two-story apartment building being built. I assumed he didn't like that sort of change but then he explained that they may as well build it ten stories since Columbia was growing so fast. He said that Columbia was a big city that simply hadn't realized it yet. Everything indicates that he is correct.
Best of luck and look, for example, at Howell Court. 28 units in what was a bad part of town but is changing dramatically because of a new baseball stadium and other development going on over there. Rent is underpriced and not much over $20k a door. Lots of hidden value there.
Hi @Alexis Zion . I'm a Realtor and investor in Charleston. We're by far the most expensive market in the state. Apartments are incredibly hard to come by at the moment. A decent 5-10 unit here is probably going to start you around 500k. I just closed helped a buyer get an 8 unit pretty recently for 450k. It was in fair shape, but they were 1 bedroom units, so not a massive cash cow for the price. Aside from the difficulty of just finding them, it's hard for an out of area buyer to succeed with those properties here because they sell almost immediately and it's difficult for out of state buyers to look at them before they're gone.
@Alexis Zion There are four 8-unit buildings in an Anderson suburb for sale ( part of a larger complex with multiple owners). I believe they were listed around $250,000 per building and rents were $450-$500 per door.
@Alexis Zion This isn't 100% directly related to your question but I'd decide (now) if it's a 4-unit you want or a 5+ unit. It definitely changes loan terms, might push you towards a community bank instead of the Wells Fargo's of the world, etc. See if there are non-recourse funding options for you locally with a commercial loan and, if not, get comfortable with a full-recourse loan pre-offer. A full-recourse loan can really alter your perspective on risk tolerance! Not to mention a 20 year amortization table (vs. a 30 year) can REALLY impact your cash-flow.
I'm guessing you've already thought all of this through but I figured it couldn't hurt to float it out there.
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