Investing in Aiken, SC?

[Bebe_Falcon1]

DH and I are already looking ahead to the days where we don’t have to survive through another winter. We’re also in search of our next rental property and are considering something further south, where trips to check-in on it can also serve as some relief from the colder weather here.

We’ve always desired a farm where we could keep the ponies at home but will never be able to own one up here largely due to the cost. If we were to purchase something manageable in Aiken, SC (with the intent to use it ourselves 6 mos. out of the year when we eventually retire), what would the rental market be like for it?

I’ve already read through many of the older threads on Aiken, SC and think it could check a lot of boxes for DH and I - he likes the idea of being close to Augusta as someone who follows golf and I dabble in carriage driving.

I’m envisioning a 6 mo. longer-term rental during the winter (as people want to trailer their horses down south with them) and probably shorter-term AirBnB stays during the warmer months. Can anyone speak to what the rental market is like there for this kind of a property? Or what the more desirable properties tend to offer to those looking to rent them?

[LCDR]

Make sure that that renters are allowed to use the amenities if you go with a place with an HOA. Where I live in Aiken, only property owners are allowed to use the trails, dressage arenas, jumping arenas, cross country schooling area, pool, and such. Renters (and also guests) are allowed to use them only if the renter is accompanied by a property owner. And this includes trainers. I had to have my own jumping arena and a dressage arena built on my farm so my trainer would have a place to ride my horses without me having to mount up and ride with her every time she is here.

[JanM]

Another caution, make sure the city and county ordinances allow short term, or less than 1 year rentals. A lot of places are sick of Airbnb rentals, and HOAs, cities and counties may prohibit them now or in the future.

I live in a HOA subdivision, 51 units, and if someone ever gets fined (we can’t find a property manager, so no fines for now) it won’t be on the renter, but the owner.

[mvp]

OP, I live in Aiken and I can maybe answer your question. But I have more for you first.

1. How much money do you want to spend?

2. And this is key: Which 6 months of a year do you want to rent this out?

If you mean that you want to rent it during the summers, that’s a different animal than renting it during the winter season. It can be done, with some caveats. Most of your clientele will be people who are building in Aiken and need a place to stay with their many animals while their place is being completed. They have the ability to pay. What they don’t have is the ability to predict/control how long they will need your place.

Depending on how much farm you buy and where it is, I don’t think renting out your farm in the off season will entirely pay for itself. And the maintenance on it from afar will be a little bit of a pain in the ass.

If you’d like, I can ask around friends who have done something similar and see how it has worked for them.

[Bebe_Falcon1]

These are great questions @mvp … where to start?! Our budget has been tough to nail down because I keep looking for something that doesn’t exist (I’m good at that, it seems).

Do we consider a horse property that’s established and ready to go? Something that we can rent-out to long-term tenants that maybe has a small suite we can stay in when vacationing in the area (pony-free) and then add modest horse facilities in our retired years when we’re around to manage them? Or just buy a “normal” property on a much smaller lot and plan on boarding elsewhere instead?

We’d be renting it out year-round for awhile yet, and then eventually renting it out only during the summers (when it’s not so miserable up at our current latitude).

One of the draws of Aiken was (perhaps not anymore) the price point, where we could actually still afford horse property somewhere. $350,000 seems to be my comfort level at the moment when it comes to real estate that has to be able to pay for itself. Which isn’t much, but then we also have some real estate up here we can sell in retirement, some of the proceeds of which can be used to develop some horse facilities if the property were zoned right and had the land available.

[mvp]

@Bebe_Falcon1

These are great questions @mvp … where to start?! Our budget has been tough to nail down because I keep looking for something that doesn’t exist (I’m good at that, it seems).

Do we consider a horse property that’s established and ready to go? Something that we can rent-out to long-term tenants that maybe has a small suite we can stay in when vacationing in the area (pony-free) and then add modest horse facilities in our retired years when we’re around to manage them? Or just buy a “normal” property on a much smaller lot and plan on boarding elsewhere instead?

We’d be renting it out year-round for awhile yet, and then eventually renting it out only during the summers (when it’s not so miserable up at our current latitude).

One of the draws of Aiken was (perhaps not anymore) the price point, where we could actually still afford horse property somewhere. $350,000 seems to be my comfort level at the moment when it comes to real estate that has to be able to pay for itself. Which isn’t much, but then we also have some real estate up here we can sell in retirement, some of the proceeds of which can be used to develop some horse facilities if the property were zoned right and had the land available.

The bummer is that there aren’t really many horse properties here for $350K anymore. (For reference, I have been paying attention since 2017). But! Small ones that would work for a short-term vacation place with horses might come up in that range from time-to-time.

Housing prices in general here have also been on the upswing, particularly since COVID. It seems to me that Aiken has enlarged its reputation as a place for the horsey set to winter and golfers to enjoy to being a place where everyone who wants to stretch their dollars can retire.

What you might do is

1. Really learn the area and where the next “out of town” place would be. That would be where you look for a diamond in the rough, whether that’s raw land or a fixer. A fixer with enough acreage would be the better money-maker because even if you get a deal on land, there are not deals on building. Buy existing if you can and then be here to supervise the remodeling.

2. Research again, but buy an in-town house as an Airbnb and investment. I believe that kind of house will appreciate, just about no matter what. You don’t have to pay $350K for that. Come and live in it when you feel like it; let the house buy itself for you via short-term tenants the rest of the time. If you visit and stay in your house, then find the farm you want, sell the rental to fund the final, home farm purchase.

3. FWIW, I think the boarding industry has been getting “uncomfortable” for both sides of the transaction for a long time. And I think it’s really starting to go to sh!t. Aiken is great and has great infrastructure, so you will have more than enough places to choose from. But I think boarding here is expensive.

This is just my PTSD talking, but I would not make it my long-term plan to own horses and board them, even here.

That said, there’s a great deal to be said for figuring out a way to land in Aiken, learn the own and the horse scene, and then buy the horse property you want or learn enough about barns here that you find a handful that would meet your needs as a boarder.

If I were going to check out a new area, I’d go rent there for a year (if real estate there was normal). Since Aiken is not normal in terms of how much housing prices are going up here AND the fact that you can do pretty well owning a rental), this is one time that I’d suggest buying to get in and then using that money-making pied-a-tier to figure out where you want to live when you get here full time.

I have a friend who is very smart and does the Airbnb investing thing. If you want to go in this direction, I can hook you guys up.

[Bebe_Falcon1]

Great information, thank you for taking the time to sum that up for me here! I would LOVE the opportunity to speak with your friend already investing in AirBnBs if they’re willing to share their thoughts on this particular market.

[nycjumper]

This is an old thread but I’m happy to answer any questions you have (I’m a realtor as well as owning farm here in Aiken).

You’re welcome to email me directly at rachelcdv at gmail or shoot me a PM. If you come to Aiken, I’m happy to show you around!

[Bebe_Falcon1]

Thank you for the offer, I’ll reach out when we’re able to make a trip down there happen!

[mellsmom]

Bebe_Falcon1

I am in the process of building my second farm here in Aiken. There is almost no inventory to speak of on the market right now. Equine properties are now closer to the 500K and up price point. I sold my last property to someone who is seasonal and will eventually relocate here. I will say that crime is really high in some areas. You need to be VERY careful where you decide to buy. Internet service is dicey in many parts of the county, so definitely ask about that and you will want to invest in a security system that you can monitor remotely. I had my first property as a seasonal place and it is really tough to manage upkeep from afar. Finding reliable farm help is extremely difficult. I would not expect a farm property to pay for itself through off season rentals. Most people renting farms are as stated above… looking for a facility with a nice barn and arena and paddocks while they wait for their place to be built, OR they are unable to afford their own farm and will settle for less facilities, but may be on a tighter budget. In your price range, you should be able to find a trailer on some land, or a cute house in town. Many people come during the winter season and want a furnished rental, so those do rent for a premium. A friend of mine lucked into a 4 ac property with a cute but dated brick rancher on the north side near Rt 20 for $ 265, but she has added fencing and a barn $$$$$. She is also on a sand road and in a fairly rural neighborhood. You might be able to find something that direction, but not sure about the short term off season rental potential.

[mvp]

A fall, 2023 update:

OP, there are rumblings about starting to regulate short-term rentals within the city limits. I’m not sure about the county. Stay tuned for the next 6 months to a year to see how this plays out.

I don’t think this is going to limit or harm Airbnb investors in any significant way. There are a lot of people who derive enough income from these kinds of rentals that the city/county will feel pressure to accommodate them. Also, Aiken isn’t a city that attracts particularly rowdy or loud renters. I believe this movement comes from long-term residents of older neighborhoods who don’t like the idea that anyone but them (i.e. resident-owners) make for good neighbors. If they were not complaining about short-term renters, I’m pretty sure they’d be complaining about long-term renters and I’m sure they’d complain about larger or even corporate investors owning houses near them. Most Airbnb owners feel pressure to keep their places well-manicured and there is enough credit-checking and ID-checking via Airbnb that I don’t think that crime has gone up because there are lots of people in and out of these rentals. I can see how someone in a quiet neighborhood near one of the horse show grounds isn’t psyched about the large SUVs and trucks that the show people might bring with them. That’s a fair criticism.

And here’s a primer on how taxes work here. You will pay both city and county taxes if your parcel is in the city. You are charged 4% of assessed value on your primary residence and 6% on anything else. So a vacation home, second home or investment home all get charged at 6% of assessed value. That is the default tax rate for all properties; you have to establish the home as your primary residence if you want to the 4% tax rate.

People over 65 get some kind of homesteader’s exemption from some of their taxes, I think.

While property taxes are relatively low in South Carolina (and you have correspondingly bad government services) insurance is not. I think Fire and Dwelling policies (the home-owner’s insurance you’d buy for a rental/investment property) and auto insurance are relatively expensive in comparison to other states/markets.

You also pay annual property tax on vehicles registered here. So there is something to be said for not buying a $120K truck.

[JanM]

Where I live (in Alabama), the short term rentals are being approved by the zoning commission as fast as anyone applies. It’s all about the money. The short-term rentals pay sales tax (8%) plus hotel tax (11%), so 19% goes to the city, and maybe the state. Some states also outlawed regulations limiting short-term rentals, no matter what local ordinances are, or HOA or other rules.

[Bebe_Falcon1]

@mvp

You also pay annual property tax on vehicles registered here. So there is something to be said for not buying a $120K truck.

?!?!

Wow, I had no idea that was a thing.

[GSD5903]

Hi! I am currently looking to purchase a horse property in Aiken, and I’d really appreciate any recommendations on areas that are safe. Brutal, honest opinions please! I am also seriously considering building and any advice you have on builders, etc, would be wonderful. Thank you!

[LCDR]

Links to get you started. I have a Wolf house and a Yoder barn, and am pleased with both. Both were good experiences

Builder:
https://wolfconstruction.com/

Barn builder:

Home Page

[Annie10]

It is in many states

[GSD5903]

Thank you! I have seen some Yoder barns and they are beautiful!

[mvp]

Been there, done that. My advice is to get here first, figure out the lay of the land and then be here to supervise your build.

Lots of this, including your ability to take LCDR’s builder recommendation will depend on the size of your wallet.

By-and-large, Aiken County is a pretty safe place. I think if you lived out in the sticks and left farm equipment out, it could walk.

In terms of building, I think there are better and worse builders in terms of price, quality and making word-and-deed match. Things tend to take too long here for my taste. Aiken County is growing, and the good builders will have a wait list.

Matt Yoder, whom LCDR mentioned, is a top-drawer barn builder. But you will wait for him, you will get quality and the price tag to go with it. I think he likes to build small, well-designed barns. Sean Wolf/Wolf Homes is also top end. They do spec homes as well with several being in Three Runs Plantation, a very large horse-centric development composed of 5+ acre hobby farms.

Land is cheaper here than in lots of other horsey areas, but getting very expensive by local standards. The same is true for building, but more so. In other words, building seems very expensive. IMO, things build now will appraise and will also appreciate some. Ask yourself what you want and how close to $1M you’d like to spend. If $400K seems like a lot to you, I’d give you different advice than if you think $1M is a fine starting point and you could find more if you needed it. I don’t buy or build real estate without acknowledging that it is an investment, so I’m not the girl who wants to build the largest, most expensive farm on the block. So if you are like me, you need to get here and learn the market before building.

[LCDR]

As for Three Runs, I have been around since the beginning, taking lessons in Aiken and scoping out places to someday retire. I’dI’estimate that about a dozen equine communities hobby farm developments started out around 30 years ago. Some grew slowly and thrived, others are still pretty dormant. As mentioned, you really need to drive around and lay eyes on them.

A few weeks ago, a 5 acre building lot in Three Runs was listed at slightly over $100,000 PER ACRE, which is pretty wishful thinking by the seller. I recall looking at a similar lots there even 10-15 years ago that were $10,000 per acre.

[mvp]

I believe land in Bridle Creek (another development now owned/being finished by the guy who did Three Runs Planation) is selling for $22,500/acre.

Outside of a horse development, you could pay anywhere from $10K to $18K or so per acre. To people who have been in Aiken for a while, those prices are inflated. Are those good deals or bad deals? There are a number of things to consider.

1. Location. And that’s getting a more complicated thing to consider because development in all directions from Aiken is going on at a rapid pace. So you’d have to really learn the area and figure out if someone offering a tract of land that’s, say, $18k/acre is dreaming or knows something about some upcoming development (e.g. Old Barnwell Golf Course) that makes them think that land will appreciate.

2. You need to ask about how/when internet will get there. This can be hard to figure out and not a place to skimp on due diligence. People think all hopeful/wishful/predictive statements are fair in love, war and real estate in the South. On the other hand, most soil will perc** and there seems to be abundant water.

2a. There are some exceptions to that. To the North of Aiken, toward Edgefield County, soil will be clay rather than sand and septic systems will become a tad more complicated than in the parts of the county with well-draining sandy soil. Most places have abundant and shallow ground water. But the well-driller I use talks about much less water being around where they live in Monetta. In other words, ask about soil and water.

3. Is the land cleared or will you pay to do that? Can you burn what’s on the land you clear, or do you have to pay to haul it off? I don’t know what land clearing costs these days.

4. Is a pasture planted, and if so, with what? I’d say the favorite grass here is Coastal Bermuda-- a hybrid that has to be sprigged. It can be hard to find someone to do that, especially on a small plot of land. Other people plant Bermuda seed and even more seed with Bahia grass. Bahia is tough and drought-resistant. It also sends up tall, woody stems that some people despise.

5. Here in Aiken County, you need to drive around and figure out who your neighbors will be. Do you think you will be like-minded enough to get along? Know that folks really like fireworks here. They may not keep their dogs the way you would yours and out in the country, there are loose dogs that do some damage every so often. Do not buy a piece of land that you think you can wrap in bubble wrap such that you can disregard your neighbors. That never quite works out.

6. Know that health care leaves some things to be desired. Aiken Regional Hospital is the one everyone loves to hate. You will have to work a bit to find a primary care physician. Some people buy their way out via a couple of “concierge medicine” types of practices. But if top-shelf healthcare is important to you, investigate the resources in Aiken and Augusta (usually better) before you put in stakes here.