Ellicott City, MD · Member since 2017 · 30 posts · 7 votes
I am interested buying oceanfront properties (e.g. condo) with price range less than $350k. Plan is to VRBO or ARBNB the property and visit couple of times a year and make a vacation out of it. Manage through local rental property mgmt. Few areas I looked are : Myrtle Beach of SC, Ocean City of MD, Clearwater of FL, & Virginia Beach of VA. Clearwater can clearly be out of my reach of less than $350k, but other areas are should be within my price range. Goal is to break even, at a minimum, after paying all fees (HOA, management etc.), expenses (mortgage, insurance), and maintenance (5 to 10% of rent as reserve). Anybody has any insight which area to pick. And if you know any property management company?
We liked Myrtle beach a lot (little warmer and little cheaper), but management companies seems to charge 15% and provide crappy services. I am not married to any specific beach... open to any beach as long as it still make financial sense as investment.
Thanks in advance for sharing your thought. Happy new year.
@Mohammed A. Be aware that most condo communities in the Virginia Beach area will not allow “short term” rentals with the condominiums. In the neighboring town of Norfolk the city planner says they will not allow a “short term” permit for any condos or apartments, not to mention the amount of parking spots required per room. I would assume the that the city planner of Virginia Beach will follow suit of this regulation.
You seem to have the right intention but make sure you find out all regulations from the proper city planner before you purchase, furnish, and advertise your “short term” rental unit on Airbandb or VRBO. They are watching you 👀 !!
@Mohammed A. Be aware that most condo communities in the Virginia Beach area will not allow “short term” rentals with the condominiums. In the neighboring town of Norfolk the city planner says they will not allow a “short term” permit for any condos or apartments, not to mention the amount of parking spots required per room. I would assume the that the city planner of Virginia Beach will follow suit of this regulation.
You seem to have the right intention but make sure you find out all regulations from the proper city planner before you purchase, furnish, and advertise your “short term” rental unit on Airbandb or VRBO. They are watching you 👀 !!
I live in Myrtle Beach, SC and Air BnB is hot hot hot here. You can pick up a condo for 50-60k ocean front. 20 percent management fees are normal here but worth every penny if you do not live here. Turning these rooms every four to five days (sometimes two or three) can be tough. Especially, if you own more than four. We are currently looking at 4 right now in a particular building. Three things to think about: 1. Have building assessments been recently made (can be up to a 15k surprise if the building needs elevators or HOA hasn't budgeted correctly). 2. Try to pick up a couple from the same owner. That's how you can find a deal. If you know the current status of the building you can get a great deal. 3. Here in Myrtle Beach, the ocean front condos are called condo-tels because they were hotels converted into condos and each room separately deeded. Most Lenders stay away from these...however, I have found a few local lenders here that understand our market and will make an in-house loan depending on the strength of the buyer. It's a fun gig! Be happy to help if you are thinking about getting in the game here.
@Teri Brown thanks a lot for your detail response and connecting with me at Biggerpockets. 50/60 k ocean front property seems unexpected. I was wondering if you will have some time to talk with me tomorrow or Friday to get some more insight about the Myrtle beach. I was also wondering if you can introduce me to few local real estate agents and rental property management companies. I noticed you are also a mortgage broker... may be if you can help me or introduce me some loan officer. Thanks again for your response. Happy new year.
I am a real estate agent/broker in NC and in SC. Not a mortgage broker, however, I do have a couple great local mortgage brokers who do a great job for investments here. If you would like me to send you some of the properties I am referring to, send me your email and I'll put you on a search. Be happy to get you in the game here.