Charleston is emerging as a desirable real estate market for local and out-of-state investors. We’re an affordable market, especially compared to other coastal cities, and there’s a large and growing population of renters. Our economy remains strong, and we’re seeing a lot of people move into the area, looking for a higher quality of life and a lower price tag.
Every investor is different, and your goals are yours alone. However, there’s something that meets every investor’s requirements in the Charleston rental market. The question you have to ask is: How can you be sure you are making a good investment? Which properties are worth investing in?
We have some ideas on how to identify those opportunities.
Choosing the Right Charleston Location
There are a number of neighborhoods and communities in and around Charleston that make excellent locations for investors who want a profitable rental property.
The downtown area is a good place to start. The city of Charleston is on the water, between Cooper River and Ashley River. It’s a walkable area, which is attractive to college students and millennial tenants as well as active adults thinking about retirement.
Surrounding areas like Summerville, Mount Pleasant, and James Island are also ideal locations for rental property investors. You can count on high rents, well-maintained properties, and a strong pool of potential tenants.
Property Type: Single Family or Multifamily?
Whether you invest in single-family homes or multifamily properties depends on your investment goals and financial strategy. You know there are pros and cons to each. Single-family homes will result in lower vacancy and turnover rates. You’ll have stable tenants and higher rents. Multifamily properties will reduce your vacancy risk and save you money on per-unit maintenance and management costs.
If you’re putting together a complete profile of diverse investment assets, we recommend a good blend of both single-family homes, multifamily homes, and even commercial investments. When you’re looking for one property in particular, determine whether a single-family or multifamily home better fits your portfolio.
Don’t forget the impact of an HOA or community association. Many homes are in an HOA, and you’ll need to make sure that renting out a home you purchase there is permissible. You’ll also want to know what the rules and requirements are before you buy.
Well-Maintained Properties are Worth Your Investment
Remember that you’re looking for properties in good condition. It’s easy to romanticize the rehab and renovation projects of those low-cost buildings, but the work usually takes longer than you expect and costs more than you budgeted. Find investment properties that are as close to rent-ready as possible so you don’t delay earning rental income.
Many experienced investors enjoy the challenge of buying a dilapidated property for cheap and turning it into something special. This can be a great strategy, but it will take time and require patience and experience.
We work with new and experienced investors all the time, and we can help you find the best rental property for your investment portfolio. Contact us at ROG Coastal Property Management for help investing in a Charleston rental home.