I can’t tell you how many calls I receive asking the question, “Where can I buy a place where I can do short-term rentals” or “What can I buy that has the potential to cash flow?” And always, for the most part, I have to disappoint. Positive cash flow is tough because of high insurance and taxes on historic buildings compared to purchase value. Short Term Rental is even tougher, because, the reality is, only ONE neighborhood in town (outside of the Accommodations district) currently allows them, and then only specifically zoned properties within that neighborhood.
So here’s an opportunity that has the potential to satisfy both those questions.
76 & 78 Spring Street in Elliotborough is being sold as a two-building package, one commercial, one residential, both zoned Limited Business and compliant with the City of Charleston zoning for short-term rentals. One already has income, the other has major potential, and there are 9 off-street parking spaces. This entire assemblage is being offered for $2,850,000. Click here for the listing and detail or read on below.
78 Spring is a new construction residential building designed by the same talented team who created HARLESTON row. As such, the construction quality is extraordinary with features such as a metal roof, fire suppression technology, Andersen Architectural Series impact-resistant windows and more. The interior finishes will resemble the aesthetics of projects the team has done in the past, with a higher end twist, including custom cabinets, stainless appliances and gorgeous granite counters in the kitchens, hardwood floors throughout, tiled bathrooms and contemporary lighting fixtures.
Within this building there are three residential units – one large 3BR/3BA, a large 2BR/2BA with extra den, and another 2BR/2BA. Two of them have private exterior porches overlooking Spring Street, and off-street parking is provided. Similarly sized and located short-term rentals go for an average of $400 per night, so you can imagine the income possibilities.
Here’s a rendering of the property so you can see what it will look like when finished, and below is a site plan to get a better idea of the building in relation to 76 Spring and the parking.
76 Spring is a Carolopolis Awarded, historic, modernized Charleston Single, with up to four commercial units, double side piazzas and off-street parking. Tenants are already in place, and beginning January 2016, the building will have a gross annual income of $84,000. It has beautiful historic details, high ceilings, and french doors leading to the piazzas.
Location, Location, Location
If you already read my blog, you should already be hip to the hippest, most happening neighborhood in town – Elliotborough. 76 & 78 Spring are located right in the heart of it, at the corner of Spring and Percy Streets, just a few blocks to Upper King Street and its shops, restaurants, new hotels and luxury apartments. Or you could go across the street to get one of Wild Flour Pastry’s famous Sunday sticky buns. Or walk around the corner to the fabulous Chez Nous and imbibe a french wine in a candlelit courtyard. Or head just down the way to try and withstand the heat of Xiao Bao Biscuit‘s Mapo Dou Fu.
Without a doubt, I am hungry as I write this but obviously you understand, whether you have commercial tenants, full-time residents, long-term renters or visitors from California, location and accessibility are of utmost importance. From an investment standpoint, know that as demand for Upper King Street property has increased, so have prices, yielding an overflow into the Spring/Cannon Corridor for local businesses and travelers alike. And a bonus – the City of Charleston Spring/Cannon two-way street conversion is scheduled to be complete in the next few months, including installation of new granite curbs, lighting, hardscaping and landscaping – continuing the trend of beautification and renovation along this Corridor.
You may recall a past post I wrote about where you could find a short term rental to purchase in Downtown Charleston. Well it’s here. Take a look at the map below and note that ONLY the blue properties are zoned to allow short term rentals if they meet the conditional requirements and have the permit.
So if you want to get in on the ground floor with a property that is not quite finished, buy an assemblage that is scarce with high demand, own two buildings with the potential for multiple income streams (and yes, a place for you to stay in Charleston too!) and have an asset in a location in the midst of a commercial, residential and restaurant resurgence – 76 & 78 Spring are hands down the best opportunity out there. You heard it here first. 🙂
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