Warm weather, beautiful Atlantic beaches, and true Southern hospitality: there's so much to love about South Carolina. For real estate investors specifically, the piping-hot tourism economy and housing crunch make an investment property here a no-brainer.
Investing in real estate with a debt service coverage ratio loan has never been easier through Visio Lending. Because we rely solely on the property's cash flow to determine your eligibility, you don't need to provide tax returns, pay stubs, or your own debt-to-income ratio to qualify for a DSCR loan; this makes it simple to access the funds you need to buy an excellent investment property in the Palmetto State.
If you're ready to become one of the many real estate investors with an eye on South Carolina, contact us today to learn how DSCR loans make it to jump on the hottest investment opportunities throughout the state.
Because a DSCR loan hinges primarily on the property's potential rental income, there is far less paperwork when compared to traditional mortgage loans, which require a detailed analysis of the borrower's personal income before they can be approved.
This can make it difficult for those with a unique financial situation, like the self-employed, to obtain a traditional loan, but that's not a problem with DSCR loans. This is why so many entrepreneurs greatly prefer to apply for a DSCR loan when seeking to add investment properties to their real estate portfolio.
By focusing solely on the cash flow generated by the investment property, DSCR lenders do away with much of the paperwork necessary for conventional mortgages. This means you can get approved far faster, giving you an edge in South Carolina's tight real estate market.
No Personal Income Verification Required
To qualify for a DSCR loan, you don't need to prove your income through bank statements or other documents; the borrower's capacity to cover the loan payments is determined almost entirely by the property's cash flow instead.
The minimum loan amount is between $100,000 and $150,000, while the maximum loan amount is $5 million. This gives you plenty of room to work with when identifying promising rental properties, especially as the average home value in South Carolina is $287,618.
When it comes to building your real estate portfolio, the entire Palmetto State is incredibly promising, but these are some of the best markets for investment properties based on expected rental income, economic growth, and rental rates.
One of the largest cities in South Carolina, Charleston has a fun vibe that's popular with both tourists and residents alike. It's quite pricey to buy property here, with average home values being around $519,979. Across all residential property types, rental income is about $1,737. Office space is relatively affordable at $28 per square foot, but a retail property's income is truly phenomenal at $39.43 per square foot.
The state capital Columbia is home to the largest US Army installation for combat training, meaning there is a large population of young families looking for dining and entertainment. Despite rental income being relatively competitive compared to Charleston at an average of $1,525 across all types, home values are much lower: single-family houses cost just $258,063. Commercial space is quite affordable at an average of $19.75 per square foot for both retail and office.
Greenville is a college town with truly beautiful waterfalls and parks that bring in locals and tourists alike. It's slightly more expensive than Columbia, with an average property value of $296,038, but rental income is also higher at an average of $1,750 across all residential home types. Retail and office rental properties make about the same, averaging $25.14 per square foot between them.
If you're looking at short-term rental properties, Myrtle Beach is your best bet: vacation house rental property can bring in an amazing $461 per night, despite the house value being only a bit above Greenville at $302,303. Long-term rentals provide approximately $1,900 per month, while retail space makes $18.08 per square foot.
Check out some of Visio Lending's recently closed DSCR loans in South Carolina.