I am new to BP and have been researching STRs for a while now. I live in RI and wish to pick up STRs down south : SC, NC, VA (in that order). I already own a rental unit at a condo and have a long term renter and have been renting for over 10 years now. However, would still consider myself a newbie. I am planning on buying a vacation property that would also lend itself to a STR.
My question is:
1. Is North Myrtle Beach, SC a good area for STRs?
2. I plan on getting a Condo rather than a house- would it be better the other way around? I know the condo fees etc- however, feel that a condo gets managed quite a bit more than a house would in this case- seeing how I would not be easily accessible and would have to hire a property manager in either case.
3.Any suggestions on places/Areas that are close to the beach that are good for STRs?
Thanks in advance,
Any helpful hints/ suggestions welcome and much appreciated.
From what I have seen in this area, house get top dollar. I have rented a condo very cheap, cheaper than hotel prices. This is because there are so many of them to pick from so it drives the price down.
Do a search on Vrbo and Airbnb for beach front houses at different times of the year then do it for condos and see if this isn't still the case.
After the COA/HOA fees get taken into account it's tough to make money with an entry level condo there. I'll mirror what @John Underwood stated. If you must get a condo stretch for one that's hitting: Great location, sleeps the most people (3BR) and great amenities. Seasonality is going to play a factor since Myrtle Beach area draws tourism March-October, November December little to nothing and Jan-Feb pretty much nothing. Just watch out for the COA fees!
@Arya Biswas If you are going with a condo, I’d recommend making your condo stand out. There are a lot of vacation rentals in the area, but many are outdated and not maintained well. If you can get a unit with a great view and make the inside great as well (updated flooring, modern design), you’ll be able to increase demand for your unit and charge higher prices. Obviously want to make sure you are in a desirable area, and amenities help. Just depends on who your target customer is.
Condos are a great way to get your foot in the door and start generating some cash. But after HOA fees and the in-house rental management company, you'll be close to breaking even. Really depends on what you are after. I have been encouraging investors to look into doing BRRRR-BnB type strategies with single-family units as there is such a demand for those. The catch is finding a good deal that isn't restricted by HOA by-laws!