All Forum Posts by: Sean Hoglund

@Terry Johnson - I complete agree with what you said. my rental in 28115 has increased over 10% in the past year based on other sales comps in the same neighborhood. the SC home have not seen that increase. I am primarily looking for cash flow thats why I have put more effort into SC. It does not appear that rental rates in NC increase much (if at all) year to year. In SC it seems that 2% annual rent increase is obtainable.

I should do a better job of checking in on this forum. I just closed on a primary residence in Mooresville at the lake, and will be moving from so cal in a few months. I have 1 rental in mooresville that I bought 1.5 years ago, it cash flows well at the $175k purchase price. Those homes are now over $200k and the rent isn’t any higher. I since have purchased 6 homes in Columbia SC and have been very impressed with the return on those. I am working on 2 more SC rentals now. I am also working on developing land and building spec homes outside of mooresville. In my opinion there is good potential on spec home builds. At this time in that market I don’t see how anyone is making money on a buy and hold rental (at todays market).

@Will Gaston I do not manage them myself. I used property consultants of Columbia and they have done a great job.

I bought one rental in Mooresville and it is doing well. Turn key good deals are hard to find. I am not looking for flips.  I feel that I missed the market there.  I am still interested in the area because I am looking to personally move there in a few years. I have also purchased 2 rentals in Columbia SC and those are going great. 

great feedback. thank you both

 I am looking pretty much everywhere from Charlotte to Statesville.

Hello,

This is my fist post on BP. My father got me started in single family and multi family real estate in the Los Angeles area. I currently self manage 45 doors. My wife and I are looking to relocate to North Carolina. After a few trips back there, the rental market seems to be pretty promising. In my opinion I can get more cash on cash ROI in North Carolina, compared to Los Angeles area. I recently purchased my first rental in Mooresville. I am going to have a property management company handled that house, until I move back there. My goal is to have 10 rentals in Mooresville area in the next year. I am anxious to hear about other Mooresville investors.

Can someone tell me if I am missing something. I thought it was simply the difference on percentage of appraised value (4% vs 6%). But the bigger issue is the nonresidents (or a 2nd house) have to pay all the school tax! For example a rental house I am interested in (in Lexington) is listed for $187,000. The previous years appraised value is $154,323. Annual property tax on it if you are a resident (and its your primary house) is $960. If it is a 2nd home or you are a nonresident, the annual tax is $4,592!!

Assuming this is correct, how are investors able to get decent cash flow out of a rental?

I used this calculator to verify the amounts : https://lex-co.sc.gov/services...

information below if from : https://realestatescorecard.co...

Real Estate Taxes

South Carolina taxes on residential real estate can vary quite a bit depending on where you live and if your home is your primary residence, or a second home or rental property. For primary residences, taxes paid equal 4% of the fair market value of the home times the local millage rate plus any other local district taxes assessed, such as for fire or police, but with a school district tax credit. Non-primary residence owners pay the local millage on a rate equal to 6% of fair market value plus district taxes and are not exempt from paying school district taxes. Resident homeowners aged 65 and older or disabled can receive a $50,000 exemption against fair market value.

In North Carolina, residential real estate is also taxed on an ad valorem basis, with each county administering assessments and collections. Rates vary by county, and are applied to 100% of assessed value (values are determined by the assessor’s office). As an example, Brunswick County’s current rate is 48.5¢ per $100 of value. On a $350K home, the tax will be $1,570. Municipalities may add additional taxes to this, so you’ll want to contact the county tax assessor-collector office to determine current rates for a specific area. Homeowners age 65 and older or the disabled who meet certain income limit requirements can receive breaks on their property taxes in North Carolina.

Transfer taxes on the purchase or sale of homes in North and South Carolina are also different. In North Carolina, the transfer tax is $1 per $500 of sale price; however, in a few counties an additional amount (up to $5/$500) can be added. South Carolina imposes a deed recording fee of $1.85 per $500 regardless of county. In both states, the transfer taxes are typically paid by the seller, but terms may vary.