Buy-and-Hold Investing - Article Banner

Charleston is one of the top-performing real estate markets in the country, thanks to its inventory of affordably priced homes. When you compare what an investor can get in Charleston to what that same amount of money would buy in New York, Boston, Miami, or Washington, D.C., it’s easy to see why this is one of the best markets to buy investment property on the east coast. 

The housing market in Charleston is projected to continue growing throughout 2021 and even into the next few years. The Charleston Regional Business Journal says this growth is due to affordable housing, consistent job opportunities, and local economic expansion. 

Cash flow is possible with your Charleston rental property. The longer you hold onto your investment, the more you stand to earn. 

Charleston Rental Properties and Cash Flow

Everyone has heard the phrase cash is king, and many Charleston real estate investors believe that cash flow is king. If your investment goals include earning positive cash flow, Charleston is the right market for your investment dollars. 

When you earn a positive cash flow, you know your Charleston investment property is profitable. You’re earning more than you’re spending every month, and setting yourself up for some great ROI in both the short-term and the long-term. As an investor, you need to be analyzing your income and expenses to ensure your rental income matches and exceeds your rental expenses. 

Don’t forget your fixed and variable expenses. You’ll have to pay for your mortgage and insurance, but there are also taxes. Some homes come with an HOA fee. You’ll have to budget for maintenance and vacancy and professional Charleston property management. 

With prices what they are and rents fairly stable, you’ll see some cash flow within your first year or two of investing. That’s one thing that makes the Charleston rental market special. In other regions, the focus needs to be on appreciation because earning enough rent to cover all expenses and then provide a profit is too challenging.

Benefits of a Buy-and-Hold Strategy

buy and hold investingThere are a few ways you can make some quick money in real estate. If you want to flip homes, you could try that. Short-term vacation rentals always bring in a higher per-night rate than long-term rentals. However, those strategies come with a lot of risk and a lot of volatility. 

Long-term rental properties bring less risk. Often, they also deliver higher returns. If you’re content to invest in properties, continue to grow your portfolio, and hold onto those homes until they no longer work for you, there’s a lot of money to be made. You need to be patient. A long-term buy-and-hold strategy will deliver:

    • Increasing rental values year over year
    • Increasing property values year over year
    • Tenants are paying down your mortgage
    • Economic stability

When you work with a professional Charleston property management company, you can be sure your investment will be occupied by high-quality tenants. You’ll know that its condition in being protected and you’ll know that all the laws, regulations, and rental requirements are being followed. 

We can help you increase cash flow and ROI. Contact us at Meridian Residential Group.

Meridian Residential Group in North Charleston provides both single-family and multi-family property management in the Charleston, SC area, including in North Charleston, Summerville, Goose Creek, and Moncks Corner, among other cities.