Looks like great place for investment. Am I missing something!?

Columbia, South Carolina
Out of State Investing
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Looks like great place for investment. Am I missing something!?

Hamidreza Rajabzadeh Oghaz
Member since 2023 · 1 post · 1 vote

Hello
I am pretty new to RE investment and in early stage of research. Having a family here got me interested to look for RE opportunities. 
I would like to run a scenario with you and some numbers to make sure I am not missing something. 

Assume an average 3bd 2 bath house in Columbia $150,000 (e.g. Forest Acres)
Down payment of %20 and estimate of closing and unexpected cost: Initial investment of $40,000
Mortgage ~6% and Tax rate (6% - Crazy!! :D) + Insurances: payment would not go over $1,600 
I have seen rents range around same price ($1,400-$1,800)

D this numbers make sense!?
If it does it looks like a great place to invest!
And would love to connect with people that help to make this dream come true. :) 
Thank you

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Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
1y

6% for property taxes is the assessment ratio, not the tax amount. Richland county has a tax estimator that works fairly well, but youll need to know the tax district that the target property is in. The assessment ratio gives you the assessed value, which is what the millage and other variable taxes are based on. 

Overall, though, I'm bullish on Columbia for the long run. 

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  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    6% for property taxes is the assessment ratio, not the tax amount. Richland county has a tax estimator that works fairly well, but youll need to know the tax district that the target property is in. The assessment ratio gives you the assessed value, which is what the millage and other variable taxes are based on. 

    Overall, though, I'm bullish on Columbia for the long run. 

    2Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    1y

    @Hamidreza Rajabzadeh Oghaz you're probably looking at a Class A or B property, which no longer cashflow at purchase - unless you find a really motivated seller!

    Typically, Class A & B properties will take 2-5 years for rent increases to outpace tax & insurance increases, so they really cashflow.

    Logical Property Management4.9446 Reviews
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    1Reply
  • Chris DeTreville
    Real Estate Agent · Columbia, SC · Member since 2012 · 112 posts · 106 votes
    1y

    TaxDistrict:   1FA 

    March 11, 2025

    Tax Estimator

    Total Taxable Value:

    ∗Homestead:− No - $0 

    Property Type:∗ Non Legal Residence

    Millage: 0.5058

    Sales Tax Credit:−$405.00

    Solid Waste: City of Forest Acres: $0.00 

    Estimated Total Tax:=$4,147.20

    This is what the taxes look like assuming it is in the Forest Acres tax district.  You can also apply for the ATI exemption if the current owner is a non-owner occupant and that will reduce the assessment by up to 25%.  

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