All Forum Posts by: Troy Gandee

@Christopher Bell We have a couple of great referrals for the Columbia market if you'd like to reach out to them. As far as agents go, Dustin Johns with Realty Resource Group is a great investor friendly agent. He does a lot of lake transactions, too. And for investment information, Andrew Lucas is an investor and runs REI Live there. He would also be a great resource for you.

@John Anderson You can just set up a new LLC with new EIN and then do a quit claim deed to the new LLC for $5 or $10. You'll have to pay for the new LLC and the closing, but quit claim transactions are pretty affordable. There are recording fees and such with the County, as well. Should be around $500 depending on your attorney. I don't believe it will affect your tax assessment either since the consideration is only a few dollars and no new mortgage information is being recorded.

@Will Gissendanner You should be fairly safe with that one, barring the taxes. Those are going to be pretty standard numbers for our our market these days. Values have shot through the roof due to the inventory shortage. Rents are climbing, but not lock step with values. Turn key properties inherently tend to have a lower ROI because you're not forcing equity yourself. @Dustin Slider is correct about the taxes. The rate you're seeing is probably the 4% owner occupant rate. If you're buying it as a rental, it will be assessed as a commercial property and have a much higher tax rate. Always make sure you're choosing the 6% rate when analyzing rentals in SC unless you plan to occupy the home yourself. This tax issue doesn't really concern gross/net taxes. It's a tax rate issue. Your agent is probably correct if you're going to claim it as your primary residence, but you have to go through an application process to do that correctly. Gross taxes are the gross tax rate against the assessed value. The net taxes are what you owe after applying millage rates and any other credits. That won't affect you much.

Thanks @Jay Hinrichs! One down, one to go!

@Monte Watson Probably not. It's meant to be your primary residence. Owning it in LLC could be a red flag for zoning. I would consider maybe putting it in a trust as opposed to an LLC. Trusts are more common for a primary residence if you want some tax advantage, but you'll want to consult with an attorney. The main thing is that the property needs to be assessed at the 4% rate to be your primary residence. In order to get your 4% rate, you have to submit an application to the county and prove that it's your primary.

@Monte Watson You can still STR outside of the STR overlay downtown, but there are restrictions. Outside of the STR overlay, there are 3 "zones" in the City of Charleston. If you're outside of the overlay, you're in either zone 1 or 2. Each has different rules and restrictions. The City has a very helpful website about the different zones and restrictions. I'd start there. The main things is establishing which zone you are in and then checking the restrictions from there.

@Frank Piccioni Absolutely. We have tons of newbies there. We intentionally try to create a place where new investors and people with hundreds of doors can interact.

@Frank Piccioni You should come to the next REI Central meeting. We meet the 1st Thursday of each month. Lots of STR folks in the room. We're taking a break in January, but will be back together in February. STRs are absolutely possible throughout the Charleston Metro area, but each municipality has distinct rules and regulations. You just have to be very careful to make sure you're operating within those parameters. I have one in a guest house at my property and a vacation rental on Seabrook. Both have different rules and protocols.

@Greg O'Brien for sure. I would hope the GPs are timely in setting everything up to get the full benefits, but that’s sadly not always the case. At the end of the day, there are so many operators doing things differently than one another.

@Greg O'Brien I believe OP is speaking in general, not about any particular deals or GPS. In general, an LP can benefit from the depreciation on these deals. It’s one of the biggest benefits. Class B shares don’t usually produce much cash flow, so the depreciation is one of the biggest attractions to a syndication. You’re correct on your assessment, but that’s assuming we know details about a particular deal, which I do not think we do.