All Forum Posts by: Ben Hutto

@Adrian Stamer

I have limited investing experience in both markets. I grew up outside of Columbia, but when I actually lived in the city, I was spending my time as a tenant/student. I can speak well from that perspective.

Columbia has a hot market for student rentals. There are definitely prime areas surrounding the main bar/restaurant districts that go fast.  On the tenant side, some of these were in such high demand, you had to lease very early or know the outgoing tenants (I knew a lot of people that leased the same place for 2-3 years of school). USC's student population is almost 50% out of state, and I knew a lot of out-of-state friends that would pay top dollar to live in the best areas.

There's also a rather robust off-campus luxury apartment market. These places have been popping up all over town for the last several years. Some of these will be leasing to students as early as next month for the 2019-2020 academic year. I'm sure there's a similar market surrounding VCU in Richmond.

On the investing side, Richmond is a considerably larger market. VCU and USC are similar size universities, so student rentals are a greater percentage of the market in Columbia vs Richmond. Overall, prices/rent generally seem higher in Richmond than Columbia.

Again, this is from my very limited personal experience. I'm sure @Will Gaston or @Andrew R. Lucas have a better pulse on Columbia than I do. Will and Andrew, feel free to correct me if any of this doesn't line up with your experience.

@Will Gaston

Thanks for the insight. That makes sense and I'm not surprised.

@Andrew R. Lucas

Thanks! I figured as much. No doubt you're more likely to keep a longer term tenant as you move away from campus.

I'm open to any market and may start working my way back to Columbia/West Columbia. Richmond tends to require more cash on-hand.

@Will Gaston 

Thanks, Will. After being on the tenant side of that market, I'm not at all surprised! 

My property is in West Columbia on the opposite side of Triangle City. Ultimately, I'd like to start working my way towards downtown/campus. I assume the neighborhoods around Five Points are still pretty hot?

@Dan Barli

Thanks, Dan. You as well.

@Dan Barli

Thank you! I'm already starting to see how the forums can be beneficial.

Ultimately, I'd like to get more involved with multi-family, but I'm working with single-family for now. I'm from Columbia, SC, so I have a decent pulse on that area. Richmond became another market once I moved here for work.

I'm also exploring Charleston, SC. I'm familiar with the area, but I'm a bit weary of the boom going on down there.

@Basit Siddiqi

That makes sense to me. Thanks for the input.

I knew there was a cost associated with a 1031, so adding a price range is helpful.

It sounds like the determining factor(s) are usually how much you'll gain with the exchange (no surprise) and/or if you have tax deferred gains from previous exchanges.

Are the intermediaries paid from the gain or is that something you pay separately for?

Thanks again!

@Dave Foster, thank you for your response/organizing it simply. This all makes sense!

Do you mind answering a follow up question to point #5?

Let's say you use a 1031 with Property A to obtain Property B. Let's call the gain X for simplicity. X is worth the exchange, or you wouldn't have done it to start with. 

Now, let's say you find Property C, but if you were to exchange Property B, it'd be a wash with no gain.  It still may be a good idea to use an exchange to preserve the tax deference on X, correct?

I know this doesn't account for all of the factors, and is probably an oversimplification. 

I hear a TON about how 1031 exchanges are a great way to defer taxes + grow your portfolio faster. I've never done a 1031, but understand the logic and benefit behind them. I also understand some of the restrictions associated.

On the flip-side, I haven't heard many negative things about 1031s (other than the obvious restrictions).

Are there situations where it's better to avoid a 1031? Maybe if you don't have much equity? What other negatives exist with 1031s?

Thanks!

My name is Ben Hutto and I joined BP last year after listening to the podcasts. I haven't used the forums much in the past, but want to start getting involved. I'm an asset/property manager in Richmond, VA. I co-own a buy/hold investment with my brother in Columbia, SC. I also purchased my first live-in investment in Richmond (I rent the other two rooms to close friends). I'm interested in networking with others and learning more about real estate, particularly buy/hold + fix/flips. I'd like to continue investing in the Columbia, SC and Richmond, VA markets.