North and South Carolina vs Florida
Hey everyone,
My family and myself have been investing in Pensacola, Florida for the past decade or so. With the crazy insurance costs we're looking to switch markets and were wondering if anyone would offer insights on the costs of investing in North or South Carolina. Any input would be awesome! Thanks
Hi Robin,
I do a fair bit of business as a lender in South Carolina; a lot of short-term rental investors tend to focus on the Charleston & Myrtle Beach areas, but if you are looking for properties that are still reasonably priced and don't mind some renovations, Columbia can be a great choice
Thank you for the response Logan! I'm going to check it out.
Columbia, Greenville, and Spartanburg are still affordable and mostly doable for LTRs. Bluffton/Beaufort/HHI are growing rapidly but still relatively doable compared with Charleston and the coastal areas. STRs are super popular in Charleston, but there's a lot of regulation now that's only getting worse, as well as some saturation issues.
HOI costs will be higher east of I95 in SC for the most part. Prob around 50% or more of the properties in the Lowcountry will need flood insurance, also.
DYOR on property taxes in SC. There's a stark difference in tax rates between legal residences (primary residences) and investment properties/second homes.
I'm a Florida-based lender with operations spanning across the Carolinas. When considering investment properties in South Carolina, it's crucial to pay close attention to property taxes. Unlike primary residences, investment properties in SC are subject to higher tax rates. This factor can significantly impact your cash flow potential, especially if you're contemplating a buy-and-hold strategy. It's a point worth considering as you navigate your investment decisions.
That said, investing in these regions holds great promise. Both states rank in the top 10 for population growth since 2020, indicating robust economic prospects. I foresee continued growth in these markets, presenting numerous investment opportunities for savvy investors.
Should you have any inquiries regarding these markets or require assistance, I'm always available to offer guidance.