I have recently decided that I think I am in a similar situation as Native Son. I own a rental property that is worth too much, considering the rent I can collect on it. Furthermore, the property is 3 1/2 hours away and therefore harder to manage. I have decided to sell it, do a 1031 exchange, and invest in several smaller rentals down here somewhere. Right now I’m leaning toward $50k properties, hoping to rent them for $800 each, and looking in the North Charleston area. Thinking foreclosures and preforeclosures should be on the table, but still doing my homework, as I have little experience there. People have told me Park Circle, but I’m wondering if that area has already become too hot to find the price point I’m looking for. Any advice on areas where the rental market seems strong enough to do what I’m looking to do? PMs are welcome if that makes you more comfortable - I don’t know if rental spots are as closely guarded as fishing spots; I suspect not, but who knows.
I’ve personally worked in North Charleston for the last 14 years, some later nights when the work demanded it, and I can tell you a thing or two. I wouldn’t want to own rental property in most areas in North Charleston. There are certainly nicer areas, but what I’ve found from my little bit of research is that a majority of the people that live in North Charleston aren’t paying the rent that you’ll get in places like James Island, West Ashley, Summerville. I do believe there is a market everywhere if you look if you are willing to look hard enough. Personally I’ve had good success with Summerville and can tell you that because of the school systems there being as good as they are, it brings more people in to that area and you get good return. Again, this is my experience with my one property.
If I were buying today with the purpose of a rental property, I’d be looking at Nexton or similar areas in Summerville and houses in the $160-190K range, 1500-2000sq ft, and 3 bedrooms with fenced backyards. For whatever reason, the wooden privacy fenced backyards are a great selling point to most people. Maybe its the kids playing safely or the ability to have a dog; I don’t know. I think you get the most bang for your buck there. This is just my opinion and I’m certainly no real estate expert. By the way, I allow pets, but always get a nonrefundable pet deposit up front. No matter how big/small, any pet will cause damage to your property, even if they are outside animals.
I carefully interview my potential tenants and do all the legwork before signing a lease. Once background checks/credit reports are approved by me, I have to have one months rent security deposit plus the first months rent before they are even handed the keys to the place. I then walk them around and show them everything, look them in the eye and say “when you move out, this is what I expect this house to look like or else you aren’t getting your full deposit back.” I think when you look someone face to face and make that statement,
Here’s a pretty good spot to start checking tenants out. It’ll give you limited view and you might have to dig through where they actually lived or where they got in trouble but it can be of some use. www.judicial.state.sc.us/casesearch/
You’d be surprised who you’re meeting at a house to let them take a look.
I’ve personally worked in North Charleston for the last 14 years, some later nights when the work demanded it, and I can tell you a thing or two. I wouldn’t want to own rental property in most areas in North Charleston. There are certainly nicer areas, but what I’ve found from my little bit of research is that a majority of the people that live in North Charleston aren’t paying the rent that you’ll get in places like James Island, West Ashley, Summerville. I do believe there is a market everywhere if you look if you are willing to look hard enough. Personally I’ve had good success with Summerville and can tell you that because of the school systems there being as good as they are, it brings more people in to that area and you get good return. Again, this is my experience with my one property.
If I were buying today with the purpose of a rental property, I’d be looking at Nexton or similar areas in Summerville and houses in the $160-190K range, 1500-2000sq ft, and 3 bedrooms with fenced backyards. For whatever reason, the wooden privacy fenced backyards are a great selling point to most people. Maybe its the kids playing safely or the ability to have a dog; I don’t know. I think you get the most bang for your buck there. This is just my opinion and I’m certainly no real estate expert. By the way, I allow pets, but always get a nonrefundable pet deposit up front. No matter how big/small, any pet will cause damage to your property, even if they are outside animals.
I carefully interview my potential tenants and do all the legwork before signing a lease. Once background checks/credit reports are approved by me, I have to have one months rent security deposit plus the first months rent before they are even handed the keys to the place. I then walk them around and show them everything, look them in the eye and say "when you move out,
Wcarlis was talking about $50K properties in North Chuck to rent…me personally, I wouldn’t want anything to do with that. That has me thinking that I’m going to have to go show up to their door on Fridays when they get paid in order for me to get my money. I don’t like chasing my money down. I like it coming to me in the mailbox on the first of every month…but that’s just me.
I’ve known a couple of people that have lower income properties ($60K-$90K) that they rent out. Yes, the money is good if you can get it, but you are working for that money every week and the people tend to not take care of your house and the turnover is very high. You’ll always be working hard in this scenario. Its not for me; but its certainly for some.
Thanks for the input so far. What’s everyone’s thoughts on Zillow. I’ve found it fun to browse, but suspect that the Zestimates could be a little unreliable. Any better sources for looking for properties out there?
I would be looking at bank owned properties if I were looking to purchase a rental property. They will deal with you and you don’t have to haggle over price nearly as much as with a home owner fighting you over $1000.
There are plenty of nice 200,000 nice homes that are bank owned that could pull $1500-$1700 a month.
Personally I’ve had good success with Summerville and can tell you that because of the school systems there being as good as they are, it brings more people in to that area and you get good return. Again, this is my experience with my one property.
Think Dorchester District 2 and rent higher end instead of low end if you want to avoid tenant headaches. There are a couple of rentals in my neighborhood 4RB, 3 bath, 2500 and up ft^2 rent is $2000/ month range. One foreclosure sold for $170 and needed $50 in rehab work. Another foreclosure sold for $170 in move in condition.
Kinda sucks on comps for the folks trying to sell in the $270-300k range, but houses still move in a reasonable time frame.
I’ve been thinking about pulling the trigger on a second rental property. If I can find one close to mine in Summerville and under $200K, I’m gonna jump on it.
