All Forum Posts by: John Semanchuk

Ben, just be cautious about your termite repair budget. We've done these before and some work out to be cheaper than first thought and others grow and grow as you peel back layers of damage. You have to comfortable with the risk.  Good luck

I was afraid of that.. but thank you. Given that you know the area, would you say a 4b/2.5b 1500sqft house near Hanahan Middle School for 245K would still be a good get assuming 20k repair? If you don't mind speculating. Being glued to listings it seems that way to me. But then again I'm new. Thanks for your time.  

Investment Info:

Bought two properties in Beaufort, SC, and one in Charleston, SC. Goal is to get 10-14 properties in the Carolinas. Some highly speculative, some I believe where population will transition. Some that are going to be safer.

11th Property(Beaufort, SC)
List Price: $311,000
Purchase Price: $292,000
Financing: Cash

3br/2ba, 1700 sq ft house. Leasing back to owners @ $2050/mo for 15 months effective 04/01/2023, with their option to extend 07/01/2024 for another 12 months @$2125 provided no missed payments and other violations listed in the agreement. I believe Beaufort has potential STR destination capabilities down the line. This is a relatively renovated house(all capex stuff replaced in 2019). Location is 5/10

12th Property(Beaufort, SC)
List Price: $389,999
Purchase Price: $367,000
Financing: Cash

4br/2.5ba, 2100 sqft house in a pretty damn good location. This one has legit STR potential but sticking to LTR. Can rent out for ~$2300 according to PM. Location is 7.5/10 going to update HVAC & Water then rent out as both are over 12 years old. Roof was updated in 2014. Just enough to not be in a high flood risk zone, but sort of at that borderline. Consider it one of the more riskier houses I'll try out.

13th Property(North Charleston, SC)
List Price: $485,000
Purchase Price: $475,000
Financing: 55% leveraged with DSCR(@7.75%)

Duplex in North Charleston. Little old and outdated. The seller was an absolute nightmare to work with. Doesn't need any cosmetic repairs but HVAC/Water Heater are both 7 years old, Roof is 11 years old. Currently rented at $3k/month total. $1550 & $1450, got rent rolls same two sets of tenants since April 2019 and July 2021. No missed payments, or issues thus far. Will keep them at gradual increases. Wanted to swing a real primo property on the island but chickened out with the flood factor risk. 

In the next week or so I'll make a trip to North Carolina and take a look at some of those areas a little closer. 

@V.G Jason It's neither...it's a hybrid between the two.  The units are 500+ square feet with separate living area and full kitchen, two large smart TVs, automated booking, automated locks and check in/out, electronic communication with guests, and staffed during business hours; so, it's not like a hotel.  Guests and residents and can stay for one day or for years, units are fully furnished with all bills paid, there are no leases, and there is more density; so, it's not like an apartment.  It's how people want to live and travel these days.

@Wes M. Thanks, it's a commercial property in commercial zoning.

Your comment: "that sellers have gotten ahead of a slowing market."

Interesting take. I'd say the opposite, since DOM have gone from 1 day to 53 days in Phoenix with 50% of listings dropping their asking price since July.

I haven't looked at the other markets tho'. But, if DOM has grown that much it's clear new sellers aren't pricing their properties in anticipation of a down market. They are trying to capture yesteday's value. 

Rates are set to go up again, that will slow things a little bit more.

"They are chasing it to the bottom". Happens every down cycle.

If you want any kind of useful numbers you need to add compared to a year ago. 

You can put Vegas is down 8% since June, but if you don’t put they are still up 15% from  last September it doesn’t mean much. I’d rather be down 8% in a quarter to up 15% yoy. Than down 1% last quarter to up 3% yoy. 

Cherry picking dates is an easy way to get clickbait. 

Hello Everyone

In a process of buying a home in Charleston, South Carolina to utilize as my first ever STR. It is in a Flood Zone and I would love to see if anyone would recommend a Flood Insurance company I should look into to get a quote from.

Thank you for the support and help here!

Arend M.