Moving to Greenville, SC or Austin, TX- Better market of the two?

Question

Hello fellow Bigger Pockets members! I have learned so much in the past months from the BP forums and podcast. What an amazing platform for those enthusiastic about real estate. I have recently graduated from Clemson University with minimal loans. Growing up I constantly was working with my father on a few of his rental properties, which started my interest in real estate. Now my mind is set on becoming a real estate agent. Eventually I plan on investing once I gain experience in the area, the trade, and save enough funds to begin. Currently I am saving money to be able to withstand the absence of income while learning the trade and building clientele. Within the next few months I will decide whether to start my journey in Greenville, SC or Austin, TX. It has to be one of these two cities for reasons independent of real estate. To my understanding Austin is a hot bed at the moment, and with large corporations investing in facilities there (Google, Tesla, Oracle, etc.) it appears the city will be for years to come. With the median price of a home north of 400k/many investors/high property tax, the barriers to entry and competition is greater. On the reverse, the amount to be made as an agent is also greater. Greenville, SC is also a growing city but the average price of a home, capital needed to begin investing, and competition is much less. Both appear to be great options and have high population growth year to year.

I am curious to see the insight from those more experienced than myself on which market would be best to begin to become an agent and eventually become an investor. Any knowledge or advice is greatly appreciated. I am all ears!

Tom Nguyen · Answer

My situation will probably help your make your decision. My family and I went two separate ways. I went to Austin TX and and my family went to Greenville SC. I haven’t been able to buy anything in the last year and half and on the other hand, my family is killing it in Greenville market. They close over 15 investment properties in the same timeframe. The reason I haven’t been able to buy in Austin is the same reason you said above: high price and high property tax therefore no cash flow. If you just starts out, I would go for cash flow so you have more capital to snowball your portfolio.

Ola Dantis · Answer

@Ricky Schmidt I recently moved from Baltimore, MD to Houston, TX for reasons based on the quality of life, cost of living and real estate investing. And I love it in Houston, TX!!!

Due to the ephemeral nature of life, I think it is best to make a decision that you feel brings you the most joy and peace. Yes, Real Estate and Career choices should play a role in that decision but it shouldn't be the main driver.

Other drivers may be how close (or not) you want to be to family and friends, the weather you prefer, hobbies you like in that city, and/or anything that you care for.

America is big and beautiful with ample cities choices to choose from! 🇺🇸🇺🇸🇺🇸

Arn Cenedella · Answer

@Ricky Schmidt

I spent most of my life in the SF Bay Area and Silicon Valley.

I starting invested in Austin back in 2011 and have done very well.

I moved to Greenville SC in 2014 and love it here.

Both Austin and Greenville are great places to live and invest. Greenville is less expensive.

But it seems to me, I would not make your decision on the basis of investing or a real estate career. You can do fine in either place.

The more important question is “where do you want to live? where would you be happiest?”. I would make the decision on that basis not a financial or investing one.

Coley Mitchell · Answer

Spot on Arn!  Was going to say the same.  You're young.  Live where you will be happiest then figure out how to make real estate work.  A great market with no friends, family, or the ability to do the things you love wont keep you engaged over the long-term.

Marcus Crawford · Answer

Ricky, wow it is really amazing to hear your story. I myself and in a very similar boat. I am a senior at Clemson, and going into a sales role after graduation; where I will be placed in either TX, NC, or GA. Very similar to you I have thought of investing in the Austin market as well. I would love to connect and see how we can help each other!

Ricky Schmidt · Answer

@Tom Nguyen Thank you for the perspective from both sides! What a coincidence I'm analyzing the two cities you and your family have experience in. The easier route to cash flow is something I will take into consideration since I have no access to a large amount of capital, no substantial pay history (I’ve been grinding through college), or any built relationships with private/hard money lenders.

Jordan Moorhead · Answer

@Dan Burstain I think that's very conservative!

Dan Burstain · Answer

If you are looking to maximize cash flow or even have significant cash flow of $500/mo  or more then Austin is not your place to invest.  If you are looking to maximize ROI then Austin is one of the best places to invest.  There is a reason why Austin continues to make the top 3 cities in every report of where to invest.  It is just not cash flow.  There are positive cash flow opportunities here of $100/mo or so and that will slowly grow.  The great part about the investment is that conservative appreciation here is around 8% for 2021.

Derek Loda · Answer

@Ricky Schmidt as mentioned above, I think it comes down to whether you are an appreciation investor or cashflow. I know people in both markets that can better speak to each markets individual merits. Happy to connect you with them, just shoot over a DM.

Ricky Schmidt · Answer

@Arn Cenedella It amazes me how me how many BP members that I've seen on forums or spoken with through private messages who have experience in both Greenville and Austin. It's impressive that you have been able to get into emerging markets before they explode. I appreciate the advice on where to live! I have narrowed it down to these two cities based off of a multitude of factors independent of real estate, but it is great to see a community that cares about the quality of life of new members. Thank you for the insight! I hope I can keep in touch with you if I end up moving the the upstate!

Moving to Greenville, SC or Austin, TX- Better market of the two?

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