Investing in North Charleston, SC

[Anne Christensen]

Hi,

I know this area is undergoing development but wondering if anyone is investing outside of Park Circle in the "under $300K" range and getting anything to cash flow.  It looks like there are some properties priced in this range, but they will not cash flow. According to the heat maps, areas to the southwest of Park Circle look like they will be appreciating. Do I take a chance on a property that may not cash flow for a few years?

Also, some of the area is located in Flood Zones and I'm trying to decipher FEMA's flood zone maps but having trouble deciphering the various zones.

[Brandon Croucier]

Hi Anne,

It all depends on your own goals, if you really believe in the area, have done the work and have come to a conclusion that your money is used best in an asset here, then do it.

Theres no reward without any risk.

[Jacob D Adamczak]

@Anne Christensen I am not finding them to cash flow unless you are finding a really heavy value add where you can be all in for 65% of ARV.

[Jay Hinrichs]

Quote from @Jacob D Adamczak:

@Anne Christensen I am not finding them to cash flow unless you are finding a really heavy value add where you can be all in for 65% of ARV.

we did very well in the Park circle area building new homes.. Just saying.. not sure about rentals though all of SC is a little tougher given the property tax situation for non owner occ.

[Jacob D Adamczak]

@Jay Hinrichs Yes still good money in flips and new builds to be made especially with off market deals. Ive started buying my rentals in other markets primarily.

[Jay Hinrichs]

WE did about 30 new builds downtown charleston but last 2 years we simply could not find anything that worked.. finally found  a lot and we close on it mid month.

will build the same floor plan on the same street we did 5 years ago and sold for 450k  this time its going to sell for 850k.. Charleston had some massive appreciation.. So in my mind did  matter if you did not cash flow if you were downtown appreciation more than made up for the little bit of negative.

I suspect you have seen my product around Park circle mainly the east side of down town we did about 15 new builds there. 

[V.G Jason]

I buy in Charleston for the land value, not your gimmicky cash flow. Charleston has been great, forget just good. 

[Anne Christensen]

I totally forgot about the non occupant owner tax.  Thanks for the reminder!

[Anne Christensen]

Yep, thanks.  I'm familiar with your homes!  Many thanks for the feedback.