North and South Carolina vs Florida

[Robin Hopkins]

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

[Lore Postman]

I have (or have had) rentals in NC, SC, and Fla. Our homes around Charlotte, NC, have increased in price and rents significantly in recent years (thanks to the many newcomers). So much growth has made investing very easy to succeed. 

Florida has been painful because of the insurance. On one property our insurance went from $2k/year in 2022, to $4k in 2023, to $9k in 2024. Having few insurers operating in Florida has made it difficult to shop around, especially for short-term rentals. 

SC has a lot of great investment opportunities, but as another contributor posted above, the taxes for non-SC-based investors is higher than for residents. This tax rate difference is particularly painful when homes are valued at $500k+. Also, there is another tax non-resident investors must pay if they sell the property. 

For the reasons listed above, we've decided to focus our investments in NC. The state has three distinct personalities (mountains, piedmont, and ocean), which limits the risk of having all of your eggs in one basket. That's my 2-cents worth. Hope it's helpful.