Buying Rental out of State

[DWBOX2000]

I have thinking lately about buying a small house or condo in Charleston SC. Been a couple times in the past couple years and can not wait to get back. So I am thinking about buying a place down there because eventually I would like to spend at least the winters down there. In the mean time, I would buy and either rent or air BB if that is even possible. Being in the Northeast, I would need someone to manage as well. How do I get the ball rolling? Do I just call a relator and tell them my intentions or do I need to be boots on the ground?

I am 51 and will not wintering there until I am at least 60.


Suggestions? Thoughts? Warnings?

[wdfifteen]

I have a couple of friends who have done that. They both spend the first week or so of their stays at the house working on it. I considered doing something similar an they both said, "don't."

[LWJ]

If WD doesn’t change your mind, I think you need to go in person and sniff out the areas you like. Then, you can pull the trigger even if you are remote. Things change in towns. There is always a good side and a not so good side. You need to know the difference.

[Seahawk]

Interesting timing.

A house came up in Aiken, SC that I have had my eye on for a few years. The owner is a friend of my sisters and will hold it for the weekend before they list it.

I am headed down Friday if the weather holds.

If I buy it it will be a rental for at least five years, which I promised my self I would never do again. But (always a but) this house is in the exact location I want, and has the right amount of size and property.

A few general things:

- Start with Zillow and get a sense of the market. They provide historical costs, etc. Also, Air BnB has a very good website for checking on local zoning laws, rental prices per day, rental %'s during the year, etc.

- Prices have gone crazy in the South, especially North and South Carolina. My worry is that a lot of folks that moved south will spend a few summers there and realize their mistake I am afraid that the market there is near the apex. The real estate agent will of course have a counter opinion.

- Property managers often don't. Ask around! I also think it would be really hard to Air BnB from a distance.

I am meeting with a home inspector to accompany me. It is worth the money and my sister knows the guy. I would never buy remotely without eyes on the target.

My daughter lives in Charleston, downtown and knows the area well. Charleston has good and not so good sections like any city. If you get serious she can spent a few minutes on the phone with you.

She is very opinionated. Imagine that

[HardDrive]

We own a property in Seattle that is rented out. We make is easy on ourselves by simply paying $$$ to a management company to take care of everything. But that is for tenants who are signing 12 month leases. I would very surprised if you can find a reliable property management company that could keep up with the churn of doing ABB, and not charging you a crazy amount of money.

[Seahawk]

Originally Posted by HardDrive

We own a property in Seattle that is rented out. We make is easy on ourselves by simply paying $$$ to a management company to take care of everything. But that is for tenants who are signing 12 month leases. I would very surprised if you can find a reliable property management company that could keep up with the churn of doing ABB, and not charging you a crazy amount of money.

If I buy it, I'll do the same. No plans for ABB.

[DWBOX2000]

Thanks everyone. All good info.

We have talked about being 20 mins outside of downtown but I already live the suburban life. I am ready for just walking out the door to a coffee shop or some fantastic food. Ill keep my eyes open.

[Seahawk]

Originally Posted by DWBOX2000

I am ready for just walking out the door to a coffee shop or some fantastic food. Ill keep my eyes open.

Exactly.

That is why the area the house I am looking at in Aiken is so appealing: right near what is called Hitchcock Woods, very neat, historic area, and a five minute walk to downtown.

Your property will find you!

[fintstone]

Have been a long distance landlord (several homes) for many years. You really need a manager and will have to pay state taxes there if you make any money. Fed taxes are a pain as well. I don't use my rentals...but you can write off a trip each year to visit the house without any problem...as well as maintenance and management costs, mortgage interest, taxes and insurance.

https://www.irs.gov/taxtopics/tc415

I have always thought I might use the homes I rent out eventually, but I never do. My needs and tastes change. Maybe having a good rental to visit to check on every year (where you can write off the visit) is enough. I know I have ones in Denver, Vegas, and Atlanta that I never visit any more...and will never live there again. I bought and fixed-up/furnished a vacation home about 3 years ago (don't rent it) and thought I would spend a lot of time there and it sits empty most of the time (but I still have to pay to heat and cool it, mortgage, taxes and insurance). Then about a year and a half ago, My wife wanted to buy another home to retire to eventually (where my daughter lived). We bought it and renovated it...then COVID...so I worked another year. Now my daughter is moving across the country this summer and wife sees no need to use that home either. Paid cash, but still paying taxes, insurance, heat, cooling and water for the sprinklers while it sits empty. Fun buying houses...but the costs can add up...and you may not use as you expect (as the future is hard to predict).

[hcoles]

I'm not a fan of rentals that are not close. We have had a vacation rental for 20+ years that is about 40 miles away. It is a lot of work. We've probably experienced most issues that might come up. We use(d) VRBO, HomeAway and AirBnb. Also, we have a big list of return customers. If you can find a very reliable management company that will keep your rental full and do a great job of managing the cleaners and repairs you can make it work. The key word is "if". That is a BIG "if". If you can find that company they will be worth almost any percentage they want.

[Noah930]

I have no real advice other renting from a distance seems like it would be quite challenging unless you hired a management company to handle things.

But Charleston, SC certainly sounds wonderful, from what I've heard of it. Mrs. Noah would never make such a move. She has her heart set on moving back to Massachusetts, where she grew up. But a home for sale in Charleston came across my FB feed yesterday. I have no idea if the house is in a good part of Charleston or not, or if it's even in the city center, itself. But the specs on it are pretty close to our current house...but at about 1/3 the price.

[DWBOX2000]

I live in Massachusetts between Boston and the Cape. Summers/fall are pretty good but the winters are just so depressing IMO. Everything is grey, too cold to hang in garage, I don't ski. I really miss the colors and food of Charleston. God the people were friendly to. Hospitality seemed to be a profession vs just a job to waste time.

The last couple years I traveled to the CO, AZ, NM, CO, GA, PA and FL with thoughts of potential future homes but nothing felt as right as Charleston so much that I went back twice in a nine month stretch. I even like seafood now.

We will see what happens. Thanks again everyone, helpful as always.

[Noah930]

I love those three weeks straight in February where the temp doesn't get above freezing.

I can't believe I'm actually willing to move back to the Cape. But the Cape is also a little bit different--the pace of life, the ocean-going, beachy feel. The weather's still pretty grim from Nov/Dec to April/May, though. But I would also be semi-retired, so out of any rat race. Charleston still sounds better.

[recycled sixtie]

Hi DW,

I hope I can help you and incorporate a couple of points from above. Long distance landlord is quite hard to do. We have a condo three blocks from us and administration is easy. I make the rules, have a written agreement and service for the tenants is speedy.

These are long term tenants and are over 55 years of age. We have our third set of tenants in eleven years. No air bnb. The latter is not allowed in our building. Not a hickup in the rent in all that time.

When we stay in Palm Springs we stay at a hotel and go for a walk. We run into house owners that own expensive homes and loathe air bnb houses in their vicinity. These air bnb houses are million plus homes and I would think that the noise coming from them with parties in the backyard and pools would be excessive.

I believe that houses have greater capital appreciation than condos. You don't have HOA problems with a house unless there is an HOA associated with it.

You might have to employ a manager to run your rental place. If not then quality tenants are essential. Good luck with your search and do your due diligence.

Cheers, Guy

[DWBOX2000]

If you have been to the Cape, then you might know my town. Scituate, it's a small coastal town between Boston and the Cape. Water is cold year round but scenic with nice harbor area.

Agree, Cape certainly has it's own vibe. It's a great place to drive 9 months of the year. Beautiful beaches, lots of small historic towns with their own charm. I do imagine it would be very, very quiet in the winter. Probably right up there as a place to be in the summer if you can avoid the traffic.

Blessed to have choices.

[Noah930]

Two of Mrs. Noah's best friends are in Marshfield and Weymouth. We also lived in Quincy for a year. But my wife grew up on the Cape and really wants to get back there. I think the only two places I'd be willing to live in MA might be the Cape and the Berkshires. I've lived in Boston and maybe it's PTSD, but I wouldn't want to live there again, despite how charming it is.

[PorscheGAL]

Originally Posted by DWBOX2000

I have thinking lately about buying a small house or condo in Charleston SC. Been a couple times in the past couple years and can not wait to get back. So I am thinking about buying a place down there because eventually I would like to spend at least the winters down there. In the mean time, I would buy and either rent or air BB if that is even possible. Being in the Northeast, I would need someone to manage as well. How do I get the ball rolling? Do I just call a relator and tell them my intentions or do I need to be boots on the ground?

I am 51 and will not wintering there until I am at least 60.


Suggestions? Thoughts? Warnings?

What you're describing is very common in Charleston. My son is considering medical school and I have told him if he went to med school in Charleston he should buy something and rent out rooms to other med students to pay the mortgage.

That being said, downtown, which is a place I love, is full of college students plus is packed with tourists. The real estate prices have done nothing but rise in the last 15 years we have lived in SC.

I think most real estate offices in the area would be able to help you narrow down what you are looking for.

Good luck

[PorscheGAL]

Originally Posted by Seahawk

Interesting timing.

A house came up in Aiken, SC that I have had my eye on for a few years. The owner is a friend of my sisters and will hold it for the weekend before they list it.

I am headed down Friday if the weather holds.

If I buy it it will be a rental for at least five years, which I promised my self I would never do again. But (always a but) this house is in the exact location I want, and has the right amount of size and property.

Seems you are destined for this house. We would gladly welcome you as a South Carolinian.

[Seahawk]

Originally Posted by PorscheGAL

Seems you are destined for this house. We would gladly welcome you as a South Carolinian.

Thank you. So typical of South Carolinians. It will be a few years, however, before we move.

I do have some SC props: I finished HS in Aiken in 1976. We moved from California when my Dad was assigned as the manager of the Savannah River Plant.

Our place was on Hitchcock Woods, well, still is, my sister lives there now, less that a 1/2 mile from the place I’ll be looking at this weekend.

That is the attraction. I love the part of Aiken the property is located. The house is the right size for my wife and I, nothing gaudy, just right.

We’ll see. My daughter Arden is driving up tonight from Charleston and will stay with my sister and go through the house tomorrow. Those two are as thick as thieves so I am in trouble

Thanks again...Very much appreciate the sentiment.

[DWBOX2000]

Originally Posted by Noah930

Two of Mrs. Noah's best friends are in Marshfield and Weymouth. We also lived in Quincy for a year. But my wife grew up on the Cape and really wants to get back there. I think the only two places I'd be willing to live in MA might be the Cape and the Berkshires. I've lived in Boston and maybe it's PTSD, but I wouldn't want to live there again, despite how charming it is.

Yeah can’t go wrong with either the cape or the Bershires. Closed to Limerock too.