Property Taxes - I can't figure it out

Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep.

And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

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Chris DeTreville

Real Estate Agent · Columbia, SC · Member since 2012 · 112 posts · 106 votes

@Chris Rosenberg It seems almost impossible that our non-owner occupant taxes are that high, but it's true. There are some tricks and ways to reduce that burden though. Also to answer your question, they reassess at the point of sale. So if you buy it for 150k the taxes will then be assessed at that new number. If you rehab you should be fine. So buy it for 100k, rehab it and they assessment will still be 100k even though you added value and it's now worth $190k. Small multi family that you can add value to is the sweet spot in my opinion, but extremely difficult to find. With SFR you will have more opportunities. Happy to discuss further if you want to shoot me a dm.

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Preston DeanBusiness Member
Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
2y
Hey Chris,
So much plays a role in prop taxes & here in Fort Worth, TX my prop taxes are $3,500 on a $185,000 house. But that's because of the area we have a SFR in. If that same SFR was across the highway we would have about $500-$1500 higher taxes, due to the neighborhood.
[email protected]817-480-9452
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Chris DeTreville
Real Estate Agent · Columbia, SC · Member since 2012 · 112 posts · 106 votes
2y
@Chris Rosenberg It seems almost impossible that our non-owner occupant taxes are that high, but it's true. There are some tricks and ways to reduce that burden though. Also to answer your question, they reassess at the point of sale. So if you buy it for 150k the taxes will then be assessed at that new number. If you rehab you should be fine. So buy it for 100k, rehab it and they assessment will still be 100k even though you added value and it's now worth $190k. Small multi family that you can add value to is the sweet spot in my opinion, but extremely difficult to find. With SFR you will have more opportunities. Happy to discuss further if you want to shoot me a dm.
2 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Chris Rosenberg:

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep.
And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

All info is on all the RE sites,Zillow, just scrool down taxes are listed
0 Reply
Jon Puente
Lender · Charlotte, NC · Member since 2020 · 224 posts · 221 votes
2y
Hey Chris,
There is a property tax calculator online for South Carolina, and you would have to know the millage rate for that county. What I think you should do is reach out to a title attorney local to Columbia and ask them to calculate it for you (or at least give you a rough idea).
Taxes in SC are fairly low compared to surrounding states. For example, on a 150K house, the property taxes will probably will be close to 3K annually for second home or investment property.
Talk to a Title Company or Closing Attorney!
1 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Jon Puente:

Hey Chris,
There is a property tax calculator online for South Carolina, and you would have to know the millage rate for that county. What I think you should do is reach out to a title attorney local to Columbia and ask them to calculate it for you (or at least give you a rough idea).
Taxes in SC are fairly low compared to surrounding states. For example, on a 150K house, the property taxes will probably will be close to 3K annually for second home or investment property.
Talk to a Title Company or Closing Attorney!

All sites provide the taxes,
0 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
Quote from @Chris DeTreville:

@Chris Rosenberg It seems almost impossible that our non-owner occupant taxes are that high, but it's true. There are some tricks and ways to reduce that burden though. Also to answer your question, they reassess at the point of sale. So if you buy it for 150k the taxes will then be assessed at that new number. If you rehab you should be fine. So buy it for 100k, rehab it and they assessment will still be 100k even though you added value and it's now worth $190k. Small multi family that you can add value to is the sweet spot in my opinion, but extremely difficult to find. With SFR you will have more opportunities. Happy to discuss further if you want to shoot me a dm.

This is exactly what I was looking for. Thanks! I will DM you.
0 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
Quote from @Preston Dean:

Hey Chris,
So much plays a role in prop taxes & here in Fort Worth, TX my prop taxes are $3,500 on a $185,000 house. But that's because of the area we have a SFR in. If that same SFR was across the highway we would have about $500-$1500 higher taxes, due to the neighborhood.

Thanks for the insight!
1 Reply
Kevin Young
Real Estate Agent · Columbia, SC · Member since 2023 · 3 posts · 1 vote
2y
Hey Chris! Local agent here in Columbia. In SC, you're looking at a different rate if it is owner occupied compared to an investment property. Each county might have their own property tax. Would be happy to assist looking at those when evaluating deals.
0 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
Quote from @Bob S.:

Quote from @Chris Rosenberg:

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep.
And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

All info is on all the RE sites,Zillow, just scrool down taxes are listed

This is true, except in my area taxes triple if it goes from owner occupant to non-owner occupant. And the reassessment triggered by the sale is based on the market value, not the purchase price. I've had taxes on properties that were already non-owner occupant double and triple this year. I've had properties get reassessed at values of over $150k more than I paid for them last year (the assessed value tripled). I got destroyed with taxes this year. I'm in Myrtle Beach, SC.
0 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
Quote from @Jon Puente:

Hey Chris,
There is a property tax calculator online for South Carolina, and you would have to know the millage rate for that county. What I think you should do is reach out to a title attorney local to Columbia and ask them to calculate it for you (or at least give you a rough idea).
Taxes in SC are fairly low compared to surrounding states. For example, on a 150K house, the property taxes will probably will be close to 3K annually for second home or investment property.
Talk to a Title Company or Closing Attorney!

Ok thanks for the info!
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Chris Rosenberg:

Quote from @Bob S.:

Quote from @Chris Rosenberg:

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep.
And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

All info is on all the RE sites,Zillow, just scrool down taxes are listed

This is true, except in my area taxes triple if it goes from owner occupant to non-owner occupant. And the reassessment triggered by the sale is based on the market value, not the purchase price. I've had taxes on properties that were already non-owner occupant double and triple this year. I've had properties get reassessed at values of over $150k more than I paid for them last year (the assessed value tripled). I got destroyed with taxes this year. I'm in Myrtle Beach, SC.

I lived in Murrels Inlet for a year or so, Wachasaw Plantaion,
0 Reply
Will GastonPro Member
Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
2y
Columbia, SC investor since 2006 here.
Taxes on a 150k non-owner occupied in the City of Columbia is ~$4,300.
~3% of the purchase price annually.
1 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
Quote from @Will Gaston:

Columbia, SC investor since 2006 here.
Taxes on a 150k non-owner occupied in the City of Columbia is ~$4,300.
~3% of the purchase price annually.

That perfectly answers my question. Thanks!
0 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
Quote from @Bob S.:

Quote from @Chris Rosenberg:

Quote from @Bob S.:

Quote from @Chris Rosenberg:

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep.
And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

All info is on all the RE sites,Zillow, just scrool down taxes are listed

This is true, except in my area taxes triple if it goes from owner occupant to non-owner occupant. And the reassessment triggered by the sale is based on the market value, not the purchase price. I've had taxes on properties that were already non-owner occupant double and triple this year. I've had properties get reassessed at values of over $150k more than I paid for them last year (the assessed value tripled). I got destroyed with taxes this year. I'm in Myrtle Beach, SC.

I lived in Murrels Inlet for a year or so, Wachasaw Plantaion,

I'm in Carolina Forest since 2020.
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Chris Rosenberg:

Quote from @Bob S.:

Quote from @Chris Rosenberg:

Quote from @Bob S.:

Quote from @Chris Rosenberg:

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep.
And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

All info is on all the RE sites,Zillow, just scrool down taxes are listed

This is true, except in my area taxes triple if it goes from owner occupant to non-owner occupant. And the reassessment triggered by the sale is based on the market value, not the purchase price. I've had taxes on properties that were already non-owner occupant double and triple this year. I've had properties get reassessed at values of over $150k more than I paid for them last year (the assessed value tripled). I got destroyed with taxes this year. I'm in Myrtle Beach, SC.

I lived in Murrels Inlet for a year or so, Wachasaw Plantaion,

I'm in Carolina Forest since 2020.

small world , I was there for two years , back to Fl 7 months ago. My brother is in Callabash,
0 Reply
Pete Schmidt
Rental Property Investor · Myrtle Beach, SC · Member since 2017 · 134 posts · 71 votes
2y
Buying it low will keep the price down for the first 3 years since they will go off the purchase price. The few places I picked up sub $100k had a nice low tax for the first 3 years (like $800-1200 a year). But then they reassess the property at 3 years and the tax bill jumped up 2-3X’s what it was due to them being worth significantly more due to rehabs and inflation.
1 Reply
Sean McDowellPro Member
Rental Property Investor · Columbia SC / Norfolk, VA · Member since 2019 · 40 posts · 18 votes
2y
Quote from @Jon Puente:

Hey Chris,
There is a property tax calculator online for South Carolina, and you would have to know the millage rate for that county. What I think you should do is reach out to a title attorney local to Columbia and ask them to calculate it for you (or at least give you a rough idea).
Taxes in SC are fairly low compared to surrounding states. For example, on a 150K house, the property taxes will probably will be close to 3K annually for second home or investment property.
Talk to a Title Company or Closing Attorney!

The calculator works great! @Chris Rosenberg keep in mind that in Lexington County, if you don't live in the property the taxes are MUCH more than if it's your primary residence. For example, the taxes on a property we plan to purchase next month as a primary residence runs about $2800 a year. The current owner does not live in the house anymore and is paying about $6700 a year. Definitely must be factored into your calculations. Most places it's easy to use the estimate on the real estate sites. You can talk directly to Lexington County and they will give you the actual numbers. They are a really helpful county. Good luck!!
1 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
@Pete Schmidt I actually appealed 4 property values this year. So far I got 2 back and they reduced their new assessment by $50k and $35k.
1 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
@Sean McDowell Yes I’ve been using the calculator regularly and it is a great tool. Thanks!
1 Reply
Pete Schmidt
Rental Property Investor · Myrtle Beach, SC · Member since 2017 · 134 posts · 71 votes
2y
Quote from @Chris Rosenberg:

@Pete Schmidt I actually appealed 4 property values this year. So far I got 2 back and they reduced their new assessment by $50k and $35k.
Nice. I have only had one property I appealed (and truthfully I thought the county’s estimate was fairly accurate), however the appraiser killed me with their low ball price, therefore I showed the appraisers report to the county and they reduced mine as well. Other than that one though, the county’s values seem to be a little on the lower side, but considering they base the taxes off their prices, I had no issues with that. lol
1 Reply
Chris Rosenberg
OP
Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
2y
Quote from @Pete Schmidt:

Quote from @Chris Rosenberg:

@Pete Schmidt I actually appealed 4 property values this year. So far I got 2 back and they reduced their new assessment by $50k and $35k.
Nice. I have only had one property I appealed (and truthfully I thought the county’s estimate was fairly accurate), however the appraiser killed me with their low ball price, therefore I showed the appraisers report to the county and they reduced mine as well. Other than that one though, the county’s values seem to be a little on the lower side, but considering they base the taxes off their prices, I had no issues with that. lol

Their assessment wasn't far off from market value, it was just far off from what I paid. I figured it was worth the small amount of time to file the appeal online, and it worked out. I had nothing to lose.
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