Case Study: Charleston, SC Single Family Home $50,000 Value Add Renovation
- Cassidy Burns
- Jan 21
- 4 min read
At BPG Holdings, we are always evaluating our portfolio. What assets are performing well, what assets are ready to be sold and equity captured, what assets need to be sold and rolled into a better long term asset, and what assets need renovations. We are evaluating strategic renovations, value appreciation, and intelligent reinvestment strategies. This article is a case study of a single family house that we own in Charleston, SC and showcases how we combine operational excellence with financial discipline to grow our portfolio for the long term.
From Acquisition to Appreciation
We purchased this single family home through a 1031 exchange from a smaller single family house for $505,000 in April 2022. We liked the location, growth of the Charleston SC market, and wanted to start building a footprint in this market, and honestly it was always a goal of mine to own something in Charleston, so purchased it! Today, after some improvements and market appreciation, the property’s ARV is at $735,000—an increase of $230,000 in equity.
But the past tenants did do some damage to the house, so we needed to invest some capital in order to get that ARV. This past tenant turnover we proactively reinvested $50,000 into upgrades and repairs, ensuring this home performs at its full rental potential in the short term, and eventually in 2-4 years, resale potential when we decide to sell and roll those proceeds into another larger asset, again through a 1031 exchange. I wanted to have the flexibility to make a financial decision down the road.
Renovation Breakdown: $50,000 Upgrades
This capital improvement initiative was designed to address deferred maintenance and enhance the marketability for future tenants and POTENTIAL buyers, if we did decide to sell the property. Here's what we completed:
Exterior Improvements
Roof Repairs: Addressed and repaired worn sections to extend roof life and prevent future issues.
New Front Door: Boosted curb appeal and energy efficiency.
New Deck Construction: Added a clean, functional outdoor living area, with long term Trex decking material which has a 25 year warranty and is much easier to maintain in the South Carolina climate. This was the biggest item of deferred maintenance and the most expensive improvement we made
Landscaping: Revitalized the yard with sawgrass, sod, and removing leaves
Power Washing: Full home exterior and fencing received a deep clean to restore aesthetic. This is a simple repair and adds a ton of rental value.
Interior Upgrades
Full Interior Paint: Modern, neutral tones throughout every room. We added an accent piece in the living room with the fireplace, “the eye catcher”
New Light Fixtures: Upgraded throughout the house for both aesthetics and improved lighting.
Wallpaper Accent in Laundry Room: Another catchy upgrade that tenants and homeowners love.
Rental Income: From $3,200 to $3,895/Month
The renovation directly improved tenant attraction and increased rental desirability. Previously rented at $3,200/month, the home is now leased at $3,895/month—an increase of $695/month, or over $8,000 in additional annual income. This improved cash flow reinforces the value of our upfront investment and sets the property on a stronger long-term income trajectory. Not to mention, we placed amazing tenants who wanted to sign a 4 year lease since they will be in the area for 4 years for work relocation. We opted with a 12 month lease so we can track inflation with our rent increases, but we have a tenant who is vested for the long term, and wants to have a place they call home. IF we do 3% annual increases here are the rents moving forward:
-May 2025-May 2026: $3,895/month
-May 2026-May 2027: $4,011.85/month
-May 2027-May 2028: $4,132.21/month
-May 2028-May 2029: $4,256.17/month
📊 Renovation ROI Breakdown: Annual Return from Rent Increase
📌 Key Numbers:
Renovation Cost: $50,000
Previous Monthly Rent: $3,200
New Monthly Rent: $3,895
Rent Increase: $695/month
Annual Rent Increase: $695 × 12 = $8,340
💰 Cash-on-Cash Return on Renovation Investment
To calculate the annual ROI on the renovation investment:
ROI=(50,000/8,340)×100=16.68%
Unlocking The Equity: Using a HELOC to Fuel Further Investments
One of the key advantages of real estate is the ability to unlock equity for further investment through leveraging the equity that the market has given you through appreciation and the value you’ve created through renovations (sweat equity.) With the valuation rising to $735,000 and our renovations complete, we are now in the process of opening a Home Equity Line of Credit (HELOC) on the property. Right now we are talking with lenders who are offering 70-80% LTV (loan to value), here is how this looks:
📌 Key Numbers:
Original Loan: $439,000
Current Loan Amount: $415,000
Current Value: $735,000
Total Equity Position: $320,000
Allowable Equity Loan (75-80% LTV): $99,500-$178,000
This HELOC will allow us to:
Recoup the $50,000 invested in the renovation
Tap into the increased equity for additional acquisitions, capital reserves for future repairs
Reuse capital that would otherwise be tied up, keeping our momentum in BPG Holdings growth
Instead of letting that equity sit idle, we’re putting it back to work—fueling the next round of acquisitions that align with BPG Holdings’ mission to Build Generational Wealth through smart, scalable real estate investment.
Once this HELOC is opened, you then have to become a better facilitator of capital. Making decisions on where and how to allocate those funds.
A Blueprint for Scalable Success
This Charleston, SC Single Family isn’t just a one-off success—it’s a blueprint for how we approach our portfolio:
Identify high-potential assets
Execute targeted, high-impact renovations
Improve income performance
Tap into equity to scale up
We’re proud of the transformation and thrilled to see this property now operating at a higher level—both in terms of its quality for tenants and higher return on investment.
Sometimes you don’t always have to buy the next piece of property, but sometimes it’s better to evaluate your current portfolio and improve it, that’s where the higher return will lie.
Happy Investing!
— Cassidy Burns
Founder, BPG Holdings
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