South Carolina Rental Investments

[Julie Kubicki]

Hi All,

Wondering how investors deal with the increased property tax from non-owner occupied units in the State? I understand that non-owner occupied units will see a 6% rate versus a 4% rate for owner occupied. How do they make buy and holds worth it? Increased rents? Any insight would be helpful. I am trying to understand more about whether or not investing in South Carolina will work out. Thanks in advance for any information or insight. 

[Troy Gandee]

@Julie Kubicki the 4% vs 6% rate is misleading. The tax bill isn't just 4 or 6% of the property. It starts with that rate and then a bunch of credits and millage rates are applied bringing it down significantly. It's still not cheap, but much lower than 4 or 6%. The best place to look is to search a "tax calculator" for whichever county you're buying. Charleston, Dorchester and Berkeley Counties all have good tax tools to help you estimate your tax bill. You'll be surprised how much lower the actual bill is once the millage is taken into account. The difference between the 4-6% can be jarring because our schools are funded mostly from 6% properties, so it is much higher, but you just have to account for the 6% tax when you analyze.