Becoming an out-of-state investor

[Brandon M.]

Hello all,

I am slowly working my way to making my first rental property purchase. I am currently just learning and researching all that I can before jumping into something. I am looking to get into this by next year, but as an OOS investor. I am in New York and plan to build a portfolio over the next 10 years. Mostly STR and LTR/multi-family, in multiple states (SC, NC, OH, TX, FL, TN to name some) . Specifically atm I am looking at Myrtle Beach, SC and surrounding area for STR. I have family in the area, one of which is an agent who I've been talking with about the market there.

For the STR owners that do OOS;

1. How does it work for you being on Airbnb and/or VRBO? 

2. Do you use a co-host or PMC?

3. Is a co-host on those platforms better, worse or depends compared to a PMC ?

3. If you use a PMC, do they do all of that work for you? If so, what are the percentages like for their take? I'd assume it depends on what they take part in, as I'm sure each company does it differently.

4. How do you go about interviewing/hiring a co-host or PMC?

Hope all is well out there for everyone!

Thanks,

Brandon

[Myrtle Mike Thompson]

@Brandon M. The going rate for a full-fledged property management company in the Myrtle Beach market is about 20% of gross revenue.  This assumes you buy a somewhat entry-level property that will generate less than $50k per year.  For larger houses and oceanfront "rental machine" condos, you can find management fees in the 12-15% range, and even lower if you go with a national company like Evolve (though I don't suggest this!).  If your family member deals with vacation rental transactions, I would ask them for a few local companies that you could interview.  If not, I'm happy to share my recommendations.