All Forum Posts by: Bradley Chapman

Good day all,

If I meet the criteria for "Real Estate Professional" and have a business that owns and operates Airbnb's, can I apply the section 179 deduction against the purchase of a new property purchased in 2021? Can it be considered non-residential if it averages less than 7 day stays over the course of the year? Also, does it need to be put into service in the year it was purchased in order to make this claim? The year was spent renovating the property so no short-term renters (Airbnb) in 2021.

Thanks in advance to any and all SME's that can shed some light on this!

Brad

For clarity around grandfathering of permits, if you are in good standing (no violations) and actively renting, you will be guaranteed renewal as long as you re-apply during the July window.

As of today there’s still 5 available!

@Kyle Stanley nicely done. Anyone who's willing to be patient with N. Charleston is going to have a very nice pay day down the road.

Good day Tom,

As an agent who solely focuses on working with STR investors, I would highly recommend zoning in on the specific area of interest and then work towards finding a credible agent in that region. Tracking down an agent that has the knowledge necessary to guide clients properly can be challenging (specifically zoning, regulation, and investment viability), but if you're prepared with some good investor specific questions, you should be able to vet without issue.

Feel free to reach out if you have additional questions that I may be able to assist with.

@Nik L. Not sure if it's the right fit for you but Charleston, SC has been very welcoming to California buyers. I do most of my business with outstate investors and have been pleasantly surprised by how much interest there's been from Cali in the last 2 years. STR's downtown, beaches, and surrounding area have been the popular play, seeing cap rates in the 7's.

Thoughtfully designed, fully furnished duplex in the heart of the Peninsula, ready to go to work for you. Walk to King St, College of Charleston, MUSC, and countless destinations that continuously make Charleston a coveted destination for travelers. This property will thrive as an investment, vacation property, live-in, or all of the above! Mid-term rental demand (1-3 months) is in high-demand throughout Charleston and this duplex will perform with double-digit returns.

Downtown Charleston Duplex

Greetings Elise. Yes, it is in an AE flood zone. Pretty much every property is in a flood zone downtown Charleston : )

For those looking to living in historic downtown Charleston AND acquire an income producing property, this is the one! Duplex located in the STR overlay, this property is permitted and licensed to operate one of the units an Airbnb if owner occupied. Revenue from the Airbnb will not only cover all expenses (including mortgage) for both units, but will generate additional income each month. Essentially get paid to live downtown Charleston!

This duplex has been completely renovated, very attractive for those looking to purchase a turnkey investment and start operating from day 1 of purchase. 2019 alone generated $85,000 in gross revenue!

As a buyer/seller and owner of STR's in Charleston, I can tell you that bookings and rates are getting close to 2019 numbers. Late March and first part of April was very quiet (of course the two biggest revenue months) but since then very active. Guests have been mostly from the major metro areas that surround Charleston: Charlotte, Atlanta, Jacksonville. Additionally, month-to-month stays have been extremely popular, driven by travelers from the Northeast.

STR inventory in Charleston is extremely tough to come by due to regulations. The growth rate is pretty flat as a result so as an investor, if you can land a deal, you're in a great situation since competition is capped. Not so great from a PM standpoint.

I think there's value if you're willing to look at individual properties for performance results, however the grouped reports are not to be trusted due to what others have said, data is being extrapolated from listings even if small sample size. You can't rely on the monthly income number if there's only 10 reviews of the property. If you start poking around enough you'll find listings with 100+ reviews, at which point the data should be much more reliable. I can attest to this since my properties are 98% accurate to what's being reported on Airdna.

The other piece that's frustrating (Mashvisor wins here) is the inability to export the data behind what Airdna is reporting. In Mashvisor you can export and manipulate, so if I wanted to see reports with properties that had a minimum of 100 reviews, I could do that and get much more relevant output. Problem with Mashvisor is they don't collect Vrbo data for properties that list on both, so not very accurate unless you're in an area that's dominated by Airbnb only.