Columbia, SC Market?

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Columbia, SC Market?

Casey Ratlief
Member since 2020 · 6 posts · 4 votes

Been looking into the Columbia market and it seems attractive. But I have read conflicting reports about its future prospects.

I’ve seen reports highlighting its population growth potential: http://www.thestate.com/news/l...

And I’ve seen reports throwing cold water on their growth prospects: https://www.postandcourier.com...


Anyone have experience there?  what are you thinking about this market long term?

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Dan Long
Rental Property Investor · Columbia, SC · Member since 2021 · 4 posts · 11 votes
5y

I think future appreciation in the Columbia area is not as high as other areas (especially where the current values sit today), but I have not had issues finding properties that cash flow comfortably, even with the high property taxes. You just have to take them into account before submitting an offer. There is no substitute for knowing and sticking to your numbers. I bought 4 properties last year off of the MLS that all meet/exceed the 1% rule and used traditional financing.

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  • Will GastonPro Member
    Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
    5y

    @Casey Ratlief Columbia and the surrounding areas (Lexington, Cayce, West Columbia, ect) are solid for cash flow but I'd recommend looking elsewhere if you want strong appreciation. Property taxes are high but it's not too hard to price that in if you buy right.

    4Reply
  • Casey Ratlief
    OP
    Member since 2020 · 6 posts · 4 votes
    5y

    Will - thank you! That's what I am seeing as well...the property taxes are something that make me think twice.

    1Reply
  • Jessica Haleck
    Investor · HI · Member since 2020 · 7 posts · 3 votes
    5y

    @Casey Ratlief the property taxes are a deal breaker most times, i haven’t found one on the mls yet that would bring in comfortable returns after property taxes.

    1Reply
  • Jackson Babcock
    Investor · Charleston, SC · Member since 2021 · 120 posts · 108 votes
    5y

    @Casey Ratlief

    Casey I lived in the Columbia area for 37 years.  It leaves a lot to be desired compared to other nearby MSA's.  It think it really depends on what your investing in and your long term plan.  If I can help with any specific area don't hesitate to reach out.

    1Reply
  • Dan Long
    Rental Property Investor · Columbia, SC · Member since 2021 · 4 posts · 11 votes
    5y

    I think future appreciation in the Columbia area is not as high as other areas (especially where the current values sit today), but I have not had issues finding properties that cash flow comfortably, even with the high property taxes. You just have to take them into account before submitting an offer. There is no substitute for knowing and sticking to your numbers. I bought 4 properties last year off of the MLS that all meet/exceed the 1% rule and used traditional financing.

    10Reply
  • Casey Ratlief
    OP
    Member since 2020 · 6 posts · 4 votes
    5y

    All - this is super helpful. Really appreciate you lending your knowledge!

    0Reply
  • James Smith
    Rental Property Investor · Columbia SC (columbia, sc) · Member since 2021 · 7 posts · 1 vote
    5y

    @Jackson Babcock, do you feel like there is greater growth potential in Rosewood area? Noticed decent school districts, although slightly higher crime in a few of the areas. Interested to hear your perspective.

    Cheers!

    0Reply
  • Khanh Nguyen
    Investor · Orange County, CA · Member since 2020 · 12 posts · 5 votes
    4y

    Does anyone have any knowledge on whether Columbia with cut its property taxes. I’m a first time OOS investor and decided to dip my toes in SC. With todays markets across many states, SC property vs rent vs area seemed to make most sense for me. There are still opportunities to find properties that meet the 1% rule around here and cash flow even with the high taxes.

    2Reply
  • Ryan Shannon
    Rental Property Investor · Savannah, GA · Member since 2019 · 47 posts · 16 votes
    4y

    South Carolina is an amazing state to invest.  There are properties that on the coast that cash flow extremely well and You can buy properties on the coast for massive equity and or short term rentals

    0Reply
  • Pete Widell
    Johnston, SC · Member since 2017 · 25 posts · 14 votes
    4y

    Lexington County is an area seeing huge growth. It is building down towards Batesburg- Leesville which is pretty affordable now. Also, out toward Cayce/ Red Bank.

    0Reply
  • Dan Fowers
    Member since 2021 · 9 posts · 7 votes
    4y

    Don't let the fear of taxes keep you from making money

    1Reply
  • David Robinson
    Member since 2022 · 2 posts · 0 votes
    4y

    Whats a good way to find fix and flip opportunities near Gilbert, want to keep my fiest flip local. 

    0Reply
  • Howard Soones
    Member since 2022 · 3 posts · 1 vote
    4y

    Hello I live in Charlotte NC. But thinking of investing in Columbia SC. I’m looking for a state with high upswing

    1Reply
  • Howard Soones
    Member since 2022 · 3 posts · 1 vote
    4y
    Quote from @Howard Soones:

    Hello I live in Charlotte NC. But thinking of investing in Columbia SC. I’m looking for a state with high upswing


    0Reply
  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    4y

    Seems like a really tough market, at least for entry level. I looked at a few for LTR where it seemed like the 1% rule could work but the listings kept disappearing. The realtor I talked to said that the amount of institutional investment was through the roof, she had just closed a deal with an investor group out of NYC for several dozen units. I realized I was probably out of my league and moved on. 

    Rock Hill looks a good growth market too. 

    1Reply
  • Howard Soones
    Member since 2022 · 3 posts · 1 vote
    4y

    What’s a good buying price that makes sense because of the high taxes 

    0Reply
  • Andrew R. LucasBusiness Member
    Investor · Columbia, SC · Member since 2016 · 676 posts · 320 votes
    4y
    Quote from @David Robinson:

    Whats a good way to find fix and flip opportunities near Gilbert, want to keep my fiest flip local. 

     @David Robinson You want to network with wholesalers and realtors that can bring you deals. REI Live Columbia has a meetup coming tomorrow. https://www.biggerpockets.com/...

    You could try searching this site as well for deals.  SCDiscountDeals.com

    1Reply
  • Khanh Nguyen
    Investor · Orange County, CA · Member since 2020 · 12 posts · 5 votes
    4y
    Quote from @Howard Soones:

    What’s a good buying price that makes sense because of the high taxes 


     I only  have 1 property in Columbia, SC but it hits the 1% rule. Purchase price 136500 and rents for 1399. I like to try to stay around the 1% rule in Columbia which I think is very feasible.

    0Reply
  • Jim Bob
    Member since 2022 · 72 posts · 9 votes
    4y

    If I can get $1,195 rent and offer for $102,000, is that an attractive deal? The taxes and regime fee approach 45%. Is that an unattractive metric?

    0Reply
  • Andrew R. LucasBusiness Member
    Investor · Columbia, SC · Member since 2016 · 676 posts · 320 votes
    4y
    Quote from @Jim Bob:

    If I can get $1,195 rent and offer for $102,000, is that an attractive deal? The taxes and regime fee approach 45%. Is that an unattractive metric?


     That is a fine deal.  UNLESS, you have a regime or hoa fee that reduces that 1195 net rent amount to below $1,100 a month.  

    0Reply
  • Jim Bob
    Member since 2022 · 72 posts · 9 votes
    4y

    Thanks for the reply. It seems I don't understand the 1% plan. I thought it was based on gross, not net, rent. HOA is $434, so net would be $761.

    0Reply
  • Gilda VanderHeyden
    Member since 2018 · 20 posts · 5 votes
    3y

    Great topic! @Casey Ratlief, did you end up investing in Columbia, SC?  That's where I'm at right now.  If so, why or why not?

    Do any others who posted on this thread have any thoughts about Columbia?

    I noticed there are more renters than homeowners.

    It checks off my population growth checkbox.  However, Charleston seems to have more charm.

    I like the affordability as well.

    Would love to hear your insights!

    1Reply
  • Lauren Keenan
    Member since 2021 · 20 posts · 6 votes
    3y

    Can someone refresh my memory on the tax hike amount (is it a percent?) for OOS investors? 

    1Reply
  • Michael Hutchinson
    Lender · Fort Mill, SCinstal · Member since 2016 · 68 posts · 64 votes
    3y
    Quote from @Casey Ratlief:

    Been looking into the Columbia market and it seems attractive. But I have read conflicting reports about its future prospects.

    I’ve seen reports highlighting its population growth potential: http://www.thestate.com/news/l...

    And I’ve seen reports throwing cold water on their growth prospects: https://www.postandcourier.com...


    Anyone have experience there?  what are you thinking about this market long term?

    I look at it as a stable, secure market.  USC keeps it relevant and it is a cross roads in the state, so I don't see it going down.   If I were looking there, I would be in class B-C properties and not A.   My concern is upside growth and the taxes on investment properties.   I personally invest in NC, not SC, but Columbia would be very stable in my view.  Here is the current outlook.    Good luck and reach out if I can help as I am in Fort Mill, SC.




    0Reply
  • Andrew R. LucasBusiness Member
    Investor · Columbia, SC · Member since 2016 · 676 posts · 320 votes
    3y
    Quote from @Lauren Keenan:

    Can someone refresh my memory on the tax hike amount (is it a percent?) for OOS investors? 


     I made a video to help people understand the tax implications of investment properties.  

    0Reply
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