Investment Property in Georgetown, SC

This page is general information, not legal, tax, insurance, or investment advice, and I do not tell anyone whether a property will make money. Rental rules, tax law, and insurance change, so please confirm what applies to you with your CPA, your attorney, your insurance agent, and your lender. I am a real estate professional, and my part is finding properties, pulling the facts, and handling the purchase.

The city lists the steps: a Short Term Vacation Rental application; a City of Georgetown business license in the property owner's name, since a rental agent's license or a license for another business you own does not count; accommodations and hospitality tax documents; zoning approval; and inspections by the city's Building and Fire Departments. The business license, listing the "short term rental" zoning subtype, is the permit. Permits run May 1 to April 30, a new one is needed each year, and the fees are not prorated. The Planning Department answers questions at 843-545-4010.

Lenders require flood insurance on a federally backed loan for a building in a Special Flood Hazard Area, and the South Carolina Wind and Hail Underwriting Association is the market of last resort for wind and hail in the coastal territory. The IRS treats advance rent as income when you receive it, and personal use beyond the greater of 14 days or 10 percent of the days rented at a fair price limits your deductions. For a Section 1031 exchange, identify the replacement within 45 days of transferring the property you give up and receive it within 180 days or by your tax return due date with extensions, whichever comes first. My investment property page has more. Call me with your budget and goal.