Question for Charlotte, NC Investors

[Andrew P.]

Hey guys, 

I have family in Charlotte, and I was thinking of buying a property for a family member to live in.  My goal is to buy something at/or close to retail, put down enough to generate a little cash flow (not much), then she'll either 

a) move in a year or two and buy her own house, then i'll move new renters in my property and bump up the rent $200-$300 more.

b) she'll stay in the property, and i'll have a rock solid tenant.

I have properties where I live currently a couple states away, but this is more to help out a family member while they build savings/credit.  Also long term, i'll have an investment property in another area/state and family will be there to help manage the property if needed.  

Again, cash flow isn't that much of a concern as I have cash flowing properties here in Georgia.  As long as I have a little reserves after the mortgage/taxes/insurance is paid that i'll hole away for cap ex.  

So my question is, what is your experience in FORT MILL, SOUTH CAROLINA?  I drove through that town, and it's a really neat place.  As Charlotte grows (at a fast pace!), have you noticed people moving out to Fort Mill (5-10min away)?  Can anyone give me insight on properties in Fort Mill?  I've researched a little on Zillow and I see nice homes for $150-160k, but I don't know the area at all.  I'll put that on my family member to do the research.  I also don't have a clue on rental comps. 

If anyone has recs in the Charlotte area, i'd be game for that too.  

[David Chwaszczewski]

@Andrew P.  I live in Tega Cay/Ft Mill and the area is growing larger everyday.  I am not sure what types of properties you are finding for 150-160K, but the average median home price in our area is $344K.  It has the best school district in the state and that is what drives most young families to the area.  There is also a large growth from large companies putting their HQ here.  Most home buyers who work in Charlotte and want a larger home, great schools  and cheap owner occupied property taxes will come over the boarder here.  Charlotte itself has gotten a bit pricy.  That said if you can find a great deal on a home you should do well.

Now the bad news, if you purchase in SC and you are not owner occupied you are subjected to non-owner occupied taxes.  Ft Mill is the highest in the state. If you don't calculate this correctly it could be the difference of you making money every month or  losing hundreds every month. 

Here is a link to the Property Tax Rates in SC

Example:

(A) All properties that qualify for the 4% owner occupied/legal residence rate. Multiply the appraised value by 4% to determine the assessment. Then multiply the assessment by the millage rate for total taxes.

Example: $100,000 property in the City of FT Mill

$100,000 x 4% x 0.2748 = $1099.20

(B) All other properties (except manufacturing). Multiply the appraised value by 6% to determine the assessment. Then multiply the assessment by the millage rate for total taxes.

Example: $100,000 property in the City of FT Mill

$100,000 x 6% x 0.4782 = $2,869.20