What is a Live-Work Unit?

Definition Live-Work units, or LWUs for short, are properties that allow for both residential living and commercial use in the same location. In most cases, the owner of the business must be the resident that occupies the live-work unit. The layout of LWUs can vary from simple to quite complex and luxurious. Traditional live-work units are two-story apartments that place the living quarters above the business space. However, there are instances where the living space is located beside the workspace, or even behind it. More luxurious options may even include a three- or four-story townhouse that dedicates the first floor to commercial business, while the second, third, and fourth floors are used for residential purposes. The type of work-live units that are available for use varies on municipal codes and the type of business that residents are looking to operate. It should also be noted that live-work units typically place the residents at precedence, while work-live units will likely place the business in operation at precedence. Advantages One of the biggest advantages of residing in a live-work unit is the cut down on commute time. Many business owners enjoy the convenience of being able to take a brief walk to and from work and have found their gasoline and food bills to also decrease as a result. Business owners may also find that operating out of a live-work unit is similar to working remotely from home. Another major advantage of live-work units is that they offer affordable office space. Instead of business owners paying rent for both their home unit and their commercial unit, they only have to pay for one, conjoined space. This is especially helpful for business owners during the early stages of operation.  Disadvantages While the proximity of work and home offers benefits, business owners may find themselves having difficulty separating their personal life from their professional life. This may be especially true for those who consider themselves workaholics. The amount of living space may also be significantly decreased since the unit size is divided between two functions. As a result, a live-work unit may not be the most ideal option for residents with children or pets. The Market Common If you are a business owner seeking to reside in a live-work unit, consider exploring the Market Common community! The Market Common is a vibrant shopping, dining, and residential planned community located in Myrtle Beach, SC. This community offers residents a coastal downtown vibe with local shops and restaurants, just walking distance from their homes. The Market Common offers a wide variety of options for residential living. With several apartment complexes and numerous neighborhoods, Market Common provides an opportunity for every family. Embedded in the shopping district are units above local businesses, allowing you the opportunity to live right in the middle of this lively community. Contact Us We would love to hear from you! So let’s set up a meeting today. Please fill out the form and you will receive an email from us. If you do not get the email in the next 5 minutes, check your spam/junk folder. We will make sure that someone gets in touch with you as soon as possible.

How Do You Recognize a Good Investment When You See One?

How Do You Recognize a Good Investment When You See One? At one time or another, you may have seen a “For Sale” sign on a house and thought to yourself, “I could make a profit off of that.” But, some properties have more potential for success than others. So, how do you recognize a good investment when you see one? Listed below are three considerations you should make before investing in a property.  Property Location The first consideration you should make when looking at good investment properties is the location. For this process, you should set aside your personal living preferences, and examine the most ideal spot for potential tenants. For example, a unit in an urban community is most likely going to bring more traffic than a house in the countryside. Along with community location, you should also consider what shops and activities are available in the area. Examples of ideal shopping conditions include a grocery store, a convenience store, and a clothing/merchandise store. Activities vary based on specific locations, but can include the beach, tourist attractions, nature centers, libraries, recreation centers, and restaurants.  Two more important aspects of location are the property’s proximity to schools and to workplaces. Determining ideal property locations for these conditions requires research about the leading occupations in the area, as well as the most popular schools. Researching schools in the area is especially important if you are targeting families and college students as potential tenants. These clients may be willing to pay more just for being closer to a highly-desired school.  Property Condition When making a big purchase decision such as buying a property, you want to make sure the building itself is intact. If you are looking to invest in a recently constructed or renovated property, you will find yourself making a hefty purchase price. On the other hand, if you buy a fixer-upper, you will need to invest significant funds to get it in a rentable condition. It is most important to make sure the building is structurally sound and complies with regulations. This can be confirmed by a home inspector. Keep in mind that most properties are going to require repainting, window treatments, and/or appliance purchases; however, it is advised to stay away from properties that require major repairs like severe water damage or electrical problems.  Along with the condition of the building itself, you should also pay attention to the curb appeal. Ideally, landscaping should be as simple as possible to save time and money during upkeep. While a large yard may be appealing to some tenants, if it is left unlandscaped it can become a hassle and an eye sore. A small yard can be dressed up with mulch, rocks, and small bushes/plants to make the outside of a unit look clean-cut while keeping maintenance low.   Current Market The last, and arguably most important consideration when determining if a property is a good investment is the current state of the real estate market and economy. As a general rule of thumb, investors should buy low and sell high, however it can be difficult to determine what price is considered low when trying to invest in a fluctuating market. Two methods used to quickly gauge potential profitability are the 1% rule, and the 100 times rule. The 1% rule states that to produce a positive cash flow, at least 1% of the property’s purchase price should be able to be charged for rent. If you do not think you can charge that high of rent for the property, it is likely not a good investment. The 100 times rule states that if the price of the property is 100 times less than the rent, then it is likely to be a good investment.  Both of these methods are good for general estimates, however you will need to perform more detailed calculations to determine if a property is truly a good investment. This entails gathering info such as monthly mortgage payments, property taxes, vacancy rate, and maintenance estimates and subtracting it from the amount of rent you expect to receive each month. Budgeting is an essential part of investment management and can be the difference between making a good or bad investment. CONTACT US We would love to hear from you! So let’s set up a meeting today. Please fill out the form and you will receive an email from us. If you do not get the email in the next 5 minutes, check your spam/junk folder. We will make sure that someone gets in touch with you as soon as possible. Leave us a message Jen Assip Property Manager Have any questions? Call us: 843-232-0000