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Updated over 4 years ago, 06/23/2020
Investing in Columbia SC
Anyone trying out the BRRRR method in Columbia? Would love to hear how it's going, Greenville/Charelston too, I'm an aspiring real estate investor and have been thinking about these areas.
We have any number of investors doing that sort of investing here. Are you interested in single-family or MFH? I can post some examples with figures and rents if you tell me a bit more about what you are trying to accomplish.
@Christopher Bunge, I am currently attending the University of South Carolina and am interested in pursuing real estate investing in the coming years via house hacking a duplex in Columbia or Greenville, and then working my way into SFH rentals and then SFH flips. Thank you so much
Jacob,
There are a lot of decisions to make in regard to the size and types of work a property needs; what you can do and what others will need to be hired to do. I will assume for now that questions pertaining to actual rehab are a separate discussion from this one. But here are some odds and ends that we have sold recently or are for sale now. Maybe the figures here will narrow your questions down some.
I tend to say "we" when I am talking about investment properties because, while I do not personally invest in properties, the buyers and sellers generally become friends and so when I say "We flipped a house" I am referring to investors we sell to and buy for.
Started a duplex this week in a transitional part of town not far from the University. Paid 45ish for it, rehab budget is 65 and it will rent for 750 per side when finished. This would work for someone like you if you wanted to house-hack although you'd be better in a duplex needing less work.
Triplex I will spend some time finding a buyer for next week. Brick duplex in front and a garage with an aprtment over it in the back. Current rents are 550/550 and 400. My figures are to pay 65, spend 30ish and rents will be 600/600 and 550. That is a winner.
There is a brick duplex of a type that would work for your situation. Currently rented for 650 and 625, brick townhouse-style 2BR/1.5BA units. Good neighborhood. Pay 115, spend 10 now and another ten in, say, 3 years and at that time raise rents to 750 per side. Good house-hack material.
Six-plex (three duplexes) in a part of Lexington County that has a little edge but is changing dramatically and quickly. 100% occupied and paying 2450 now. My pro forma numbers are to pay 225, spend 30 now to raise rents to 550 each. Spend another 30 in two years and get them to 650 each. Then two or three years and it'll be 750 each. Total investment about 325 and rents at the end are 4500.
Are these the sorts of numbers you are curious about?
Jacob,
With a last name like yours I imagine you are related to Gaston Albergotti? I am looking at an email from him from 2017 and thought I'd recognized your name.
@Christopher Bunge I am not familiar with a Gaston Albergotti but I'm sure it's all in the family! Thank you for your reply those numbers helped a lot. My goal is to find a duplex in the area priced around 200 that may need some work but ideally not much, try to finance with an FHA loan for 4.5% down (10,000), live in one side and rent the other hopefully cash flowing even if it's $20/mo as long as I'm living for free as well as operating 200k in assets. Do these numbers sound reasonable?
Originally posted by @Jacob Albergotti:
@Christopher Bunge I am not familiar with a Gaston Albergotti but I'm sure it's all in the family! Thank you for your reply those numbers helped a lot. My goal is to find a duplex in the area priced around 200 that may need some work but ideally not much, try to finance with an FHA loan for 4.5% down (10,000), live in one side and rent the other hopefully cash flowing even if it's $20/mo as long as I'm living for free as well as operating 200k in assets. Do these numbers sound reasonable?
Sure, except you won't have to spend 200K upfront. The brick duplex I mention above would work for you as a house-hack if I am understanding your goals. There are some duplexes here that will cash-flow at 200K purchase price but they'd be the exception. Rents are rarely going to be above 900 or 1000 per side so with relatively small money down you couldn't make a 200K place work. Plenty of decent places for sale from 125 to 175 here in solid workforce neighborhoods.
@Christopher Bunge Thank you for your help, it nice to talk with people around me with the same interest.
I am new REI in columbia Sc.. Any pointers to to buy a MFH or SFH?
Hi @Amol Kulkarni. I'm new to REI in Columbia as well. What I have learned thus far is that the taxes are 3x higher for investment properties. That will break a good deal in this market. Below are links to tax calculators for Richland county and Lexington county.