Luxury Simplified

Rental rates in Palmetto Bluff are healthy, though servicing this clientele is also not without its attendant costs, a demanding contingent of renters who seek a luxury vacation experience. Just as other areas such as Kiawah tend to require professional management and oversight of each short-term rental (STR) property listed, expectations in Palmetto Bluff are similar. By reducing bedroom sizes, closet & bathroom space and maximizing common areas, something in the range 2500-3000 square feet with exceptional outdoor spaces and perhaps a small auxiliary unit should fit the bill (managing square footage is the easiest way to keep build costs sensible, reducing unheated space is second, selections & finishes are third). (price reflects a riverfront lot in STR district) Physical Build - $700,000 plus $140,000 contingency Total Equity - $1,490,000 Estimated value [less selling costs] - $2,256,000 Operating expenses Taxes - $28,000 Utilities - $10,000 Management - $50,000 (avg 20% Gross Operating Income) Services - $23,000 (Accounting, insurance, repairs, pool, resort ..)

We have provided columns for Total Costs and for The Build itself; the costs per square foot based on Total Build footage, or just Heated/Cooled footage and the % of the total cost that was taken by each stage of the build process. The cost to build, based only on heated and cooled space (4800 -wrongly assuming everything else can be built for free) is $253 per square foot. Every space has a cost associated with it though oftentimes that of outdoor spaces is typically less per unit than the heated/cooled space. Actual build costs represented just under 60% of the total Project cost, land was just under 20% with another "hidden" 20% representing all the things we typically forget about when estimating just how much hard cash is going to be spent.

Put simply, In Charleston, that means good quality housing costing well below $200,000 each, fee simple and close to downtown. Enter a chance bank introduction to JJR Development, LLC and their ability to build speedily, at a price point that worked for us, and aligned in ethics having already constructed many workforce homes for the City of Charleston. A range of 2- and 3-bedroom homes, brand new, fee simple, X Zone, easy access to Charleston area employment centers, no gap financing and well within the HUD Criteria of 80% to 120% AMI. Building land is secure, it is funded by local banks, build methods have been tested, homes have been designed, and we have the necessary Zoning variances.

With the current economic upheaval caused by the coronavirus pandemic, right now may not seem like an ideal time to purchase any type of real estate, much less an investment property or second home. After the Federal Reserve's recent rate slash, which was intended to protect the market against the economic impact of the COVID-19 virus, now may be the right time for buyers to consider an investment property. A qualified Realtor can help you navigate the "highest and best use" of your investment property and help to determine appropriate rental rates for tenants to ensure you receive maximal return on your investment. From understanding how you plan to use an investment property or second home for yourself, to evaluating market conditions, maximizing return on investment and guiding you through the importance of asset management, no more knowledgable team exists.