All Forum Posts by: Kate Smith

Let me preface this by saying I'm not an experienced real estate investor, but I have other investing experience. And there's many people here who are experienced in real estate and give valuable information.

If you think you're losing money, you should get out. In fact you should have gotten out earlier. Others here have quoted, although I think misunderstood, Warren Buffett recently on diversification. He also said: rule1: don't lose money. rule 2: see rule 1. He's not in my top 5 investing gurus, but I agree. You can have many losses, SMALL losses, as long as you cut them quickly, and still do well.

A better way to look at it is this: Would you buy your property for what you can sell it for today? It seems like you wouldn't. It seems you think the other property is a better deal. If so, cut your losses, take it as a lesson learned and don't look back.

Just my $0.02

Ryan,

Thanks for the reply. I got a really good education (my jokes aside), had a good time and made great lifelong friends and connections in college also.

My 3 older brothers are close in age and went to the same school. My parents, after financial analysis, bought them a place where they lived and managed the property.

I don't want to spoil my son's college experience, but this is something I've considered. Maybe he could manage a property he doesn't live in, but I'm not sure his tenants would take him as serious as an older person.

Thanks for your take on this. It makes me consider it from a different side.

Kate

Wow! You are truly impressive! Let's see... at 22, I had a few more years in college. Ok, 8, but who's counting?

I keep telling my 11 yr old son that he will be a landlord in college to help fund my paying his way. He's also thinking of advanced degrees. I think it will teach him responsibility and to separate business and friends. Do you think you would have done well if your parents financed helping you buy a small 2-4 multi-student rental in college?

Mike,

yes and maybe. My "long vacation" was sailing on my boat for the last 6 yrs, so I guess you could say I'm trying to figure what I want to do next when I grow up in general.

The property has a lot so big my neighbor's employees are paying $50/mnth to park in it. I can't help but think there's a better use for the property though. It's not really our home, we just moved in because our tenant's lease was up and we wanted to get off the boat to enjoy running water we don't have to make and all those little conveniences most people take for granted. My 11 yr old is enthralled by the microwave but told me he "likes the 'burbs because they're cozy." If we stay in Charleston, we'll probably move somewhere else.

I find networking with people at all levels of experience is good, and someone recently in Chs has a didn't perspective that is valuable. Speaking of which...

Jason,

You rock. I've read many of your posts and have opinions but not as much experience as many others here. I know you mostly work in Summerville area, but do you know any builders/contractors that work down here. I assume it would be most helpful to look for someone who knows the city codes and how to get things through the BAR. Do you agree?

Patrick,

Thanks. I couldn't make it to the breakfast this week, but I'll try to make it to the next. Or maybe we can meet for coffee or a beer after work.

Elizabeth,

Let me know if you need help. I was an out-of-state (well, country actually) landlord and know how valuable a local contact can be.

Russ,

I have an acquaintance looking for a house in James Island. They're a young professional couple living downtown wanting to buy their first home. She said they'd like to be downtown but can't afford it. I suggested Wagener Terrace, but she said turn key homes there are now $400k+. She mentioned a neighborhood in JI that I didn't recognize- right over the connector behind the Hess station. Sound familiar? If you have something I will give her your contact info.

Michael,

I am newly returned to Charleston after being on an extended vacation. I would love to network. We are living in a limited business/multi-family rental property downtown that we bought several years ago and trying to figure out what we want to do next.

Kate

Patrick,

I first moved to IOP when I came to Charleston in mid 1990s. Loved it. Great wings at Acme Cantina.

I'm now back after leaving for 6 yrs- still have a property in the Cannonborough/Elliotborough area that I bought 10 yrs ago and am trying to decide what to do with it. Your take on the property and area would be helpful as I've been gone a while.

Kate

Rich,

I have a property in downtown Charleston that sounds somewhat similar. Can you read my other post and let me know what you think? Did you build on the property yet? Have you considered, or do you have a property located in the new short term rental overlay zone? what do you think of it?

Thanks, Kate

This is my first post although I've been enjoying the discussions and learning. Hope this is in the right forum.

I purchased a rundown, duplexed 1850s house in a rough area of downtown Charleston for my small business offices about 10 yrs ago. To promote revitalization, the city rezoned the corridor limited business and promised a large sidewalk, etc. improvement project. The area is a HUD Renewal Community (RC). We got a CRD designation from the city and did a bunch of renovations/restorations mostly on the structure and exterior. Our use didn't warrant nice kitchens, baths and closets.

One appeal is a large lot - for downtown - that will allow another structure to be built. We have architect's drawings but didn't pursue it any further. Instead we sold the software company and our other Chs properties, bought a sailboat and took off for the next 6 yrs. The property was rented commercial for a few of those years and residential the others.

The neighborhood has improved alot, but the city hasn't started their improvements yet. I think the next 10yrs will bring a big change. The use is about 50:50 to 60:40 residential rental to neighborhood business (yoga studio, bakery, architect, etc.).

Our recent plan was to move into a unit, refinance as a primary residence and take out some equity. Then we'd make interior improvements and build behind. I'm realizing I don't really know best use for the property though. Any suggestions on where to start ?

The city recently passed a zoning overlay allowing short term rental. I think that would allow a larger structure and up to 9 units with less parking. My neighbor has two apts above a salon that she rents short term and speaks well of it. Also, a few properties down they're putting in a large wedding event venue - good for short term rental too. If I form a business entity that purchases and manages the property does that qualify as an RC business? Can I leverage my CRD for this?

One concern is that this would be a really big project for us. We've never built. Yes, we did make money buying properties in up and coming parts of town, fixing them up, renting them and selling them 3-7 yrs later, but that was late 90s through mid 00s. It would be like a day trader in a raging bull market thinking they know trading.

And I'm not sure I want to stay here, and we absolutely stunk as remote residential landlords - our rent is well below market and the place was damaged.

What else should I be considering? Thanks