All Forum Posts by: Alexander Knowles

@Gregory Tapscott you are welcome!

@Gregory Tapscott - I am an agent here in SC - mainly serving the Myrtle Beach area. Happy to be a resource for you. @Marlene Sanchez is correct, there are different tax structures here for investment properties, but as any good investor, you should make sure your calculations take into account these different tax rates. I.e: city taxes vs county taxes. We are seeing huge growth along the coast - the Intracoastal waterway typically being the line where city moves to the county - therefore there is some significant population growth on the other side of the waterway where you do not have to pay the city premium tax. 

@Eugene Rabinovich - they are pretty strict on trying to get resident tax-status in SC. We just moved to NMB, SC area and they make you transfer everything (plates, drivers license, proof of primary residence etc.) to get the resident tax status. If you are looking into the NMB area for rentals, I would suggest taking a look at Little River. You don't have to pay the city taxes that NMB has and is only a few minutes out of NMB and from the beach, 20 mins south of Calabash, NC and about 45 mins south of Wilmington, NC. Good luck! 

@Kareem Mitchell - are you wholesaling this? I would check directly with a local realtor that might specialize in estate sales or go to an estate attorney. Having that information from them will also help you sell the contract once you find an interested buyer as I am sure they will want info on the title and making sure if all of the heirs have signed - you would be surprised how many "heirs" come out of the woodwork once they hear there is property involved! 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $195,000
Cash invested: $20,000
Sale price: $282,500

Live 'n' Flip: Purchased as a primary residence with 10% down. Sold after two years of living in it. Minor cosmetic upgrades include exterior and interior paint, new front door, new back door, new bathroom fixtures, refinished bathroom cabinets with fresh paint and hardware, xeriscaped backyard with privacy fence and pavers. Fixed the property up over a course of two years.

What made you interested in investing in this type of deal?

Read Coach Carson's Retire Early with Real Estate and listening to Mindy Jensen!

How did you find this deal and how did you negotiate it?

We were renting the home for the first two months. Fortunate enough the owners offered to sell it to us first!

How did you finance this deal?

Conventional lending through a federal credit union.

How did you add value to the deal?

Major cosmetic changes only. New doors, new hardware, new paint, new landscaped yard, new fixtures,

What was the outcome?

nearly $100K in tax-free gains after selling it after living in it for two years!

Lessons learned? Challenges?

1. Make sure your spouse is on board with the renovations.
2. Great way to be best buds with your father-in-law.
3. General handyman labour is expensive (and sometimes not great quality). Next project I will have it all done in one go rather than odd single jobs.

Hey @Sondra Lovett - **I am not a CPA/Attorney and also a rookie investor** - there is a group online called Anderson Advisors that specialize in this type of entity structure information. Feel free to check them out - https://andersonadvisors.com/ - they run a ton of free stuff online and webinar-style for free (you can pay for more tailored to your needs style). I am not affiliated to them at all but their free stuff has helped me as I start my journey and want to make sure all the pieces are correct. 

Anyway - yes. They encourage investors to hold a Wyoming or Nevada LLC as a holding company and then set up separate individual LLCs for each property in the state they are in. You'll need to set up individual bank accounts for each of the LLCs, but you have the holding company as the controlling/registered agent.

Hey @Karl Brenner - @Chris Rosenberg runs a meet up the first Tuesday of every month in the area

Hey @Stephanie Mansfield - we are also getting away from the cold and moving to the Myrtle Beach area. I am biased, but definitely check out that area. It is big on tourism which, apart from the lockdown earlier this year; has in fact been bolstered by the pandemic as a lot of people are driving there and getting out of the larger cities. Very hot market for rentals and development.

@Loris Metzinger - I am moving to SC next month. Going to be based in the Myrtle Beach area where I intend to look for deals to flip and sell. Let's connect and stay in touch once you get out here. 

Hey college town investors - 

Is anyone buying buy and hold rentals for the upcoming fall semester and beyond? I am starting to see lots of leases end and deals come onto the market (would still be good deals, regardless of the coronavirus). As all students are finishing this year online, does anyone see college campuses not coming back in the fall? Any reasonable doubts not to buy rental properties as we see these deals come up? 

Thanks!