Investing in rental properties can be a lucrative opportunity in South Carolina. In this article, we’ll go over several tips to ensure you choose the properties that’ll result in the best returns on your investment. After reading this article, you’ll know some of the more common pitfalls to avoid with properties in South Carolina, as well as the signs to look for in a great investment property.
Tip #1 – Look at Surrounding Properties
If you’re buying your property to rent out, one of the most important steps you could take is to look at the rent market in the surrounding area.
What are units like yours renting for right now? Take 3-5 units that are similar to the unit you’re considering your investment and average them out.
Would the income from this property be enough to cover your expenses?
Tip #2 – Be Conservative
Be very conservative when you’re calculating your numbers. It’s far better to overestimate your numbers and accidentally make more money than it is to underestimate your numbers and find yourself draining cash.
Remember to account for vacancies and maintenance costs. These costs don’t accrue all at once, but when they do come they can be large expenses.
Tip #3 – Check Your Rental History
How has your unit(s) been renting out over the past years? How strong is the rental history?
If in the past the unit(s) has been consistently rented out with few vacancies, that’s a good sign that the unit(s) aren’t difficult to rent out. If the opposite is true, that should be a red flag to take into consideration.
Tip #4 – Take the Low Hanging Fruit
Properties in South Carolina often have what I call “low hanging fruit” opportunities. These are improvements you can make to your unit that will immediately improve its sale value or rental value.
Some of the more obvious ones include steam cleaning the carpets, painting the walls, making necessary repairs, having tiles cleaned and so on.
The key is to tackle the repairs that will give you the highest return for the least amount of work. The idea is not to repair every little thing, especially if it won’t give you a positive ROI.
There is a lot of free information available to you about investing in South Carolina real estate.