Investment properties in S.C.?

Question

Looking to buy some investment properties in S.C., anyone here have any good insight? I'm a newbie investor, but am leaning towards a buy/hold or AirBnB model. Any recommendations on cities or towns with more favorable returns?

Gavin D. · Answer

Wow... so many people chime in to answer a question that was Not asked...lol. If you are a realtor in Charleston, or New Hampshire, you should spend a little more time focusing on your market and not cities 3-15 hours away. In any case, @Ron Turner. I have lived near Greenville for about 10 years, I'm not a realtor. Greenville has some sprouted very nice areas, primarily due to the influx of industry. Amazon is here, Michelin, Electrolux, BMW, Bosch to name a few. If you were looking to invest in long term (12 month lease) rental properties, the greenville area would be a good choice. I don't know that airbnb type rentals would do so great here. The large manufacturers here primarily employ laborers, or remote workers ( Amazon). As they do not seem to have have any problems finding employees, you would probably not see a lot of corporate housing type rentals for airbnb properties. As well, Greenville tries to be touristy, but it does compete in the same tourism market as the coastline, to which it looses pretty badly. Not many people end up planning to make a 3 hour drive from hilton head to play a round of golf in greenville while on vacation.
The blue ridge mountains are close, but for the most part, that tourism demographic prefers either the "appalachian trail accommodations" which would be a spot between 3-4 trees that is close enough to creek tub for bathing, washing dishes, and filling canteens. Or a Motel6 to economically sleep off the shame of having spent all of their money on drugs while passing through Asheville.

As you are in ATL, I'm sure you know that the hour and a half drive from Greenville to ATL is not horrible.....after you are clear of ATL. Flights from GSP to ATL are inexpensive and as the flight duration is only about 40 mins, there is no reason you cant be in greenville within 6 hours parking at ATL That being said, Fix-and-flip properties are a good choice here, but if you are looking for buy and hold and 100k,12 month lease rental properties is your thing, Greenville is for you.

Ron Turner · Answer

@Gavin D. Very insightful, thanks for the info! I do know the Greenville area a little, and agree with the businesses aspect there...

Patrick Orefice · Answer

@Victoria Mason I’m not very familiar with the specific areas of Greenville. I know it’s a great market with a lot of growth, but like any area, some neighborhoods may be better than others.  If recommend finding an investor agent and/or talking with a few property managers.

Will Gaston · Answer

@Ron Turner 100% agreed w/ @Patrick Orefice. Downtown Charleston is very strict when it comes to their STR district. If you plan to buy there (or anywhere) I would first confirm w/ zoning and/or the City that you're allowed to and if a permit is required.

I'd also try and gauge the likelihood that the market you're buying in will continue to allow STR. One ordinance or law change could be disastrous to your investment if STRs are banned.

Patrick Orefice · Answer

@Ron Turner

The larger markets in SC are all pretty hot right now: Charleston, Columbia and Greenville. In the Charleston area the STR laws are pretty strict in most municipalities so be sure you’re allowed to do it, if you’re looking to go that way.

Ron Turner · Answer

@Ron Williams thanks for the info! I'd def like to talk to you more about that, is there a good number to reach you one day this week?

Ron Williams · Answer

@Ron Turner, Hilton Head Island, SC is a great market if you are looking for the AirBnB model.  We are one of the only markets that did not get hit too hard from COVID.  We held onto a 90 percent occupancy rate all summer and have had a strong fall.  Our entry point is higher than many, but our rental rates keep bumping up.  There is probably not a better AirBnB market in SC.  It is an interesting market to say the least.  Let me know if you would like some more information on what is happening here.

Troy Gandee · Answer

@Ron Turner I wouldn't look at Charleston as an STR market if you live out of area. The entire City of Charleston is basically a no go for STRs. There are a number of very specific criteria that need to be met to Airbnb full time. Some restrictions allow partial STR renting, but not enough to focus on that strategy. North Charleston, Hanahah and Goose Creek have none or very little STR restrictions, but it's only a matter of time. I don't think it's wise to focus exclusively on that model for a single family here unless you're certain it will cash flow as a long term rental, as well.

@Victoria Mason I know a fair amount about the Greenville market. Basically anything in the central Greenville area is going to be a pretty thin margin. I would search on the fringes. I know a few people who had properties in TR before it blew up and they're sittin' pretty with those. I would probably look for some more affordable areas that will likely draw younger people for future growth. That's what happened in Traveler's Rest with the Swamp Rabbit Trail as the lifestyle draw.

Victoria Mason · Answer

@Patrick Orefice do you have any insight on the market for Greenville sc? I live local and it is up and coming- however, many of the neighborhoods seem to be fairly rundown and location wise, while yes they are close to the downtown area, they border less desirable neighborhoods. Would it still be a good investment area?

Paul Bermingham · Answer

I agree that Charleston is an excellent market for STR. North Charleston is still affordable just be selective as the neighborhoods very widely in North Charleston.

An added advantage to the North Charleston STR market is the proximity to the Naval Training base in Goose Creek, SC. The students require the same accommodations as a STR since they move from government quarters to apartments/houses and then ship out after 24 weeks. Since a new group of 250 to 400 move out into town every 8 weeks, utilizing them as tenants during the off season makes STRs stable income properties year around.

Paul Bermingham

Investment properties in S.C.?

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