All Forum Posts by: Chad Carson

@Luke B

TR, Greer, and Taylors are all good choices. I don't know what the multiunit stock will be like in Travelers Rest, but you can do some searching online with tax assessor (http://www.greenvillecounty.org/appsAS400/RealProperty/)

Taylors and Greer on the eastside are where a lot of growth has gone -- especially out towards BMW.

Best of luck with your search.

welcome @Luke B !

I invest full time nearby in Clemson. I think you will love Greenville and the Upstate. It is a great place to live.

I recommend networking for deals and to meet other landlords at the upstate CREIA meeting on the 3rd Thursday of each month. I have been attending for 10+ years and have meg a lot of helpful people.

Where do you hope to buy a multi?

@Kevin S.

I am not big on published data like that, because it is usually more broad or general, and vacancy rates are all over the board within localities and from property to property. Local property managers are often your best source of real data,

I invest in South Carolina and have friends and clients in Charlotte. I don't have specific stats, but in my own portfolio some of he lower priced rentals have 10-15% vacancy/collection losses while others with the exact same rent have .005% vacancy over last 5 years.

The difference is that one set of tenants are mainly college students while the other is lower income tenants on disability, social security, or low wage jobs. A lot of things go wrong for that second group because there is a thin margin financially in their lives. As a result, we get lots of turnover. Not one of our best rentals, either.

hey junior,

Nice to see you on here. I am over in Clemson, so let me know if you get any leads that way.

Best of luck, and congrats on baby girl! I have 2 little girls myself.

hey Deadrick, it is a long shot, but I might be willing to negotiate and follow up if it is a good location.

If you want, send me his details, and if I ever work out a deal I will of course keep you in the loop.

Dan,

I invest over in Clemson, SC but I don't do much in Spartanburg county.

I do have a couple of tips that might help you find your first rental:

1. Definitely do as @Brandon Turner and others have said - get the money lined up. You said FHA or USDA could work, but is that for rental? Sounded like owner occupant terms. Could your dad or someone partner with you and fund the down payment?

2. For finding deals, there is a wholesaler whose list I'm on who gets a lot of deals over in Spartanburg County. Here was a recent email I got from him:

_________________________

3004 Kelsey Creek Rd., Spartanburg, SC 29302

TMS# 7-21-00-066.06

1112sf, 3 bedroom, 1 bath, 74 acre lot, built 1959, central HVAC,

NEWER METAL ROOF

2013 taxes 1282 (May be reduced by appeal.)

77,350 > Last sold price 2004

72,000 > CRS retail comps

49,000 > Tax value

32,995 > Price OBO

Call for access.

Joseph A. Vollmer, Sr.

-------------------------------------------

You can get on his email list for more deals here:

If you want his phone number, PM because I don't think we're supposed to give out numbers publicly.

3. Come to Upstate CREIA on the 3rd Monday of every month in Greenville. There is a deal time at the beginning of every meeting and you can tell people what you're looking for. There are a lot of Spartanburg landlords in the room, and I bet you cold talk to some of them about buying one of their deals.

Best of luck. Keep making progress daily.

Right. Seller who will finance typically wants income or relief from management but doesn't need a big chunk of cash. Retiring landlords and estates with small number of heirs have been my best candidates on past deals.

You never know what a seller really wants until you offer. So I like to make multiple offers - low cash price, higher prices with terms. If you make the offer face to face, you will learn their true motivation. Then you can hopefully use your acquisitions tools to find a solution that works for both of you.

If AITD investing is too advanced or risky, maybe try leasing or lease options. Similar concept, often less down payment and less risk because you can back out of option if needed. Great tool in high priced, appreciating markets.

Best of luck.

@Account Closed Good question and BIG topic.

I have sold with wrap-around mortgages in South Carolina (same concept as AITD) several times.

For me it had huge benefits, because I kept my underlying financing (from a seller typically) in place instead of paying off great terms at 5%, 4%, or even 0%.

The play for me was a big income spread, often $3-500/month on $100,000 deals and recouping some of my equity with the buyer's down payment.

I was making money on a margin, just like a bank does. If I sell to you at 7% and my underlying loan is at 4% I make a 3% spread on the amount of my underlying loan and I make 7% on any equity I have above that.

The ROI on these deals is off the chart, but of course I have risks if the buyer defaults because I have to keep paying my loan until I can foreclose and get the property back. Big reserves are a must.

Another big risk for the seller is the due on sale clause if the underlying mortgage has one. Most of mine did not because I bought with seller financing, but I did wrap a couple of mortgages that had due on sale clauses with the knowledge that I might have to pay them off if they were called due.

Hi @Kelly Pinto

Welcome to Bigger Pockets.

I'm in the Upstate in Clemson, and I have done exactly what you are talking about - live in the duplex and then later move out and keep as a rental. It's a great strategy!

I don't think there are any issues except with lender. Lenders don't want you borrowing as an owner-occupant and then never intending to live there. That would be trouble.

But you clearly intend to live there, you'll stay for a while, and then if a good opportunity arises, you'll buy something else. People do this all the time in South Carolina and around the county.

Best of luck. Let me know if you have other SC questions.

@William Donaldson explained the property tax situation well.

I also agree that I've never had a problem finding good cash flow rentals even with this issue. Compared to other states, I think we're still competitive.

Overall the laws in South Carolina for landlords are favorable. I have evicted someone within 30 days in most cases, and the initial answer period is about 10 days.

@Jim Miller if you're looking for good real estate/business attorneys, my brother worked with Clawson and Staubes and they do a good job in Charleston and Greenville.

Rental rates and property prices around Charleston are much higher than the Upstate, especially in and around the peninsula and Mt. Pleasant. Also really study your neighborhoods well there before getting started. Things can change drastically from great to awful very quickly. Best of luck!