All Forum Posts by: David Chwaszczewski

@Andrew P. Yes, SC is always 4% owner 6% non-owner.  It varies by county and city for the millage and some counties do same millage but give owner occupants a credit.  That is just what it is in York Co. for FT Mill.  If it is to be your primary residence you will have to have your Drivers License reflect that.  Otherwise you are going to pay non-owner occupied taxes.

Congrats on finding the deal!  This is the hardest part for most investors.  You are on your way.

Now there are many things left out to make a determination on if its a good deal or not. 

Ex:  how much unfit does the property need, is the rent inline with current market rents and if you do unfit the units will rents increase, are the tenants paying all utilities or are you having to divide the bill, what is the taxes, are you putting away cap ex and maintenance fees along with vacancy fees in your calculations, what are the leases on the current tenants (you will have to unfit when they move out and if they are on a year lease you will have to wait), who is managing the property etc..........

I would not offer 100% of appraised value.  I would start much lower and go from there once you know what all your costs will be.

@Sean Haardt Most companies that do the credit checks have you fill out the information and then potential tenant gets sent an email to fill out.  Some make you pay and some make the tenant pay for the screening.  We used several of them in the past, but now we just use the one that is part of the property management system (RENTEC).  It works well and have no complaints.  They also give you a website and make is simple to manage your listings and tenants.  Also you can setup a merchant account and have your tenants pay online as well as submit maintenance requests.

Good luck and PM me if you have any questions!

@Andrew P.  I live in Tega Cay/Ft Mill and the area is growing larger everyday.  I am not sure what types of properties you are finding for 150-160K, but the average median home price in our area is $344K.  It has the best school district in the state and that is what drives most young families to the area.  There is also a large growth from large companies putting their HQ here.  Most home buyers who work in Charlotte and want a larger home, great schools  and cheap owner occupied property taxes will come over the boarder here.  Charlotte itself has gotten a bit pricy.  That said if you can find a great deal on a home you should do well.

Now the bad news, if you purchase in SC and you are not owner occupied you are subjected to non-owner occupied taxes.  Ft Mill is the highest in the state. If you don't calculate this correctly it could be the difference of you making money every month or  losing hundreds every month. 

Here is a link to the Property Tax Rates in SC

Example:

(A) All properties that qualify for the 4% owner occupied/legal residence rate. Multiply the appraised value by 4% to determine the assessment. Then multiply the assessment by the millage rate for total taxes.

Example: $100,000 property in the City of FT Mill

$100,000 x 4% x 0.2748 = $1099.20

(B) All other properties (except manufacturing). Multiply the appraised value by 6% to determine the assessment. Then multiply the assessment by the millage rate for total taxes.

Example: $100,000 property in the City of FT Mill

$100,000 x 6% x 0.4782 = $2,869.20

@Kyle Domini I am a full time investor in Rock Hill.  As far as the taxes they are more expensive then if you were an owner occupant (4% vs. 6% of the appraised value).  The difference in York co. is the millage on what you taxed at as a non-owner occupant in the city you are investing in.   In Rock Hill 2016 Millage Rates are .3957 and Ft. Mill its .4782.  Its basically 3 time the taxes an owner occupant will pay.  I don't invest in NC (no reason other then I keep busy buying in my back yard).

Here is example from the county website.  CLICK HERE They have not updated the link with the new millage rates, but you can just get that front the county site.

Following are examples of how to estimate taxes:

(A) All properties that qualify for the 4% owner occupied/legal residence rate. Multiply the appraised value by 4% to determine the assessment. Then multiply the assessment by the millage rate for total taxes.

Example: $100,000 property in the City of Rock Hill

$100,000 x 4% x 0.2142 = $856.80

(B) All other properties (except manufacturing). Multiply the appraised value by 6% to determine the assessment. Then multiply the assessment by the millage rate for total taxes.

Example: $100,000 property in the City of Rock Hill

$100,000 x 6% x 0.3916 = $2,349.60 

@Ceary Williams @Cornelius Garland I am a full time investor in Rock Hill.  I only do Rock Hill.  My company specializes in rehabbing homes for investors and also new construction.  If you have any questions about the Rock Hill market reach out!

I use it in our rentals.  It looks good and holds up well.  We glue ours down and if there is an issue we have a box or two in each unit that we just replace the bad ones if needed.  There are many newer product out that look beautiful, but you will pay for it.  So you need to look at some samples and then weigh out the cost.  You may be more a SQFT for the better vinyl then other flooring options.

I have four 2/1 single family homes on one lot.  I am looking to get it subdivided, but not sure if it meets current requirements to do so.  My question is does anyone know of a lender who will do cash out refi on multiple single family homes on one tax map?  I believe it would be treated as a quadplex.

I tried lima one since i have done many with them, but they were not able to do this one.

@Stephanie Howard are you planning on purchasing the home on auction and list "AS-IS" with an agent? 

I dont do any deals in Liberty or Duncan, but you need to be aware of SC investor Tax.  This can be a heavy tax if not calculated correctly in your numbers.  Typically an non-owner occupied home is subject to 6% of the appraised value times the millage.  Basically the rule of 3, if owner occupied pays $500 a year in taxes you will pay close to $1500.  All counties vary on the millage, but the 6% is the same.  This is not the case for North Carolina.  NC is same rate for both.

Last make sure you figure all your auction fee's into your numbers.  They add up fast and can break a deal fast.

Good luck!

Has anyone done an eQRP?  I am looking into the company Total Control Financial, but wanted to see if anyone has setup up one with the company before.  Seems like it may be better control of your money then SDIRA and less fees.  If anyone has setup a eQRP please let me know any Pro's or Con's.

Thanks!