Real estate investing in South Carolina: Worth it at 6% property tax?

[Eli Fazzo]

Hey Bp family,

I’m looking to move to Lexington, South Carolina area within the next year or so. I would like to start investing in real estate once I get situated down there. My plan is to sell my primary home in New York and purchase a house to live in South Carolina. I also have three other investment properties in New York. I would like to 1031 exchange these properties into investment properties in South Carolina. From the research I’ve done so far, it seems that South Carolina taxes investment properties at 6% which makes a tax bill quite high compared to a primary home. This worries me a little. The high tax eats away a lot at the cash flow. Is it still worth to invest in the area?

Also if anyone has any contacts in the area and would like to share, I would greatly appreciate it. I don’t have any In the area at this point. Tax accountants, investor friendly agents, 1031 exhange experts etc. Thankful for any response or input.

[Sean Graham]

Quote from @Eli Fazzo:

Hey Bp family,

I’m looking to move to Lexington, South Carolina area within the next year or so. I would like to start investing in real estate once I get situated down there. My plan is to sell my primary home in New York and purchase a house to live in South Carolina. I also have three other investment properties in New York. I would like to 1031 exchange these properties into investment properties in South Carolina. From the research I’ve done so far, it seems that South Carolina taxes investment properties at 6% which makes a tax bill quite high compared to a primary home. This worries me a little. The high tax eats away a lot at the cash flow. Is it still worth to invest in the area?

Also if anyone has any contacts in the area and would like to share, I would greatly appreciate it. I don’t have any In the area at this point. Tax accountants, investor friendly agents, 1031 exhange experts etc. Thankful for any response or input.

@Dave Foster might be able to help plan with 1031

@Jackson Hanssen is also a good 1031 resource