STR Opportunity Analysis in Beaufort, SC

[Sam Hall]

Looking at a 4br/3b, 1700 sqft deal in Beaufort, SC about 3 miles from Parris Island to purchase as an STR. The house is in good shape (really just needs some paint), and even includes a pool. I've confirmed with the city that the house can be used as an STR (granted I obtain a business license), and the analysis I have done says this house could do upwards of $70K - $100K a year. I'm very unfamiliar with this market (generally I have invested in FL), but ran across this deal and it seems to be really solid. Is anyone familiar with investing in that area that could confirm/deny the viability of using a 3-4br single family as an STR, or if there is anything I might be missing?

[John Underwood]

You can rent to all the families coming up for marine graduation in Parris Island.

Should be a good area just from that alone. 

[Michael Baum]

Hey @Sam Hall, sounds good to me. Have you included the other costs to get your CoC? Have you looked at all the various rentals in the area on VRBO and AirBNB to see how they are doing?

@John Underwood is the man in the area.

[Ken Boone]

I used to work down there a LOT. Not sure how often they are graduating marines but back then it was every 3 weeks. Whenever I came into town during that time, IF I could get a hotel, the rates where WAAAAYY jacked up. And since people come into town from all over the US, an STR might do real good there. Inshore fishing is also a big thing down there, as well as shrimping, and deep sea fishing. Hunting Island State Park is in Beaufort County as well with a public beach. Don't have 1st hand knowledge of STRs down there but I could see a market.

[Sam Hall]

Thanks for the responses!

@John Underwood that's what I was thinking, on top of people that might want to come to visit the beaches there - like for instance hilton head is under an hour away from there.

@Michael Baum I've run a cost analysis with fairly conservative numbers (75-80% of lowest projected income) and even then we should be cash flowing.  Other 3 and 4 bed STRs in the area seem to do well, and once fixed up this property should compete with them.  There is also a restriction on how many STRs there can be in this area, which helps with supply/demand.   

[Michael Baum]

Well, time to spring! Rates are only going up so if you are confident, then getting locked in now would be a good plan @Sam Hall

[Jeff Dawson]

Hey @Sam Hall, I've lived in Beaufort for 10 years now so pretty familiar with the area. Have two friends and in laws with STR's close to Pt Royal and the 70-100k is probably a little high, for now anyways. As others have said a lot of the demand is driven by the Marine graduations which have been almost weekly as of lately. The 4 br's seem to do better since most times entire families will come to attend graduations and it's much cheaper than 4 hotel rooms. The STR market here has definitely become saturated, but between graduations, downtown Beaufort, Hunting Island, Pt Royal marina development, and all the other attractions in the area the demand is still there. Just keep in mind Beaufort is like many other places currently; contractors are backed way up and prices are through the roof! Let me know if I can do anything to help.

[Sam Hall]

Thanks for this @Jeff Dawson!  What would you say is a better estimate - $60k / year?  If you have any recommendations as to contractors I would be really interested to hear them.