Quote from @V.G Jason:
I'm a fan of the investment in Charleston, just not at the condo level. Get yourself a SFR.
Charleston is going to be solid though, have a little portfolio here and it's growing. Anyone telling you that it needs to be CF positive is missing the forest for the trees. All of mine were projected to not be, all of mine are within 1 year(lease renewals). This city is desirable, I buy in good neighborhoods, etc. Just be wary of taxes for investment properties, its different.
This is definitely something I've been thinking about lately. I think a lot of the decision about investment strategy - LT appreciation vs cashflow in this case - is as much about the investor's current position as it is about the market. I agree with you that cashflow is not everything - many investments can still create a great return even with negative cashflow if the appreciation is strong enough, and CHS is most likely one of those markets.
What Ive come across lately, though, is a lot of new investors who want to get in the game, but don't have the discretionary income needed to properly manage negative cashflow. Theyre pushing the envelope to the max and arent able to absorb a run of bad luck, such as a few months of vacancy. They need positive cashflow to help them build/maintain reserves for the downtimes. They simply cant afford buy-and-hold, cashflow negative investments and would be putting themselves at serious risk with that strategy. I've been very cautious around advising this strategy until I see that the investor has the personal financial position to manage that type of investment. But, ultimately, you're right - strong appreciation can justify a cashflow negative investment in some cases.
And don't get me started on the property tax BS lol. That whole setup is ridiculous and needs to be overhauled. There's no reason to jack up tax rates just because a house is used as a rental rather than a primary - all it does is inflate the rent at the renter's expense.
