North Myrtle Beach STR

[Matt Schreiber]

I've been noticing a lot of inventory for beachfront condos in Myrtle Beach and North Myrtle Beach. It also seems like a lot of the condos sit on the market for 3 months or more. Just curious if anyone is doing STR's in that market and what kind of results they're seeing.

[Shannon Strickland]

@Matt Schreiber

I bought my one and only short-term rental (STR) in North Myrtle Beach in February 2024. It is a 4-bedroom single-family house situated just .33 miles from the ocean. While the $600 per month insurance bill is hefty, I remind myself that being closer to the ocean would have meant even higher costs.

One of the key lessons I've learned is the importance of timing. I took too long to get my property rent-ready, which led to a significant loss of potential revenue. In its first year, the rental only earned enough to cover half the mortgage. This year, I am optimistic it will cover the entire mortgage. By year three, I aim to cover all operating costs and, by year four, to generate positive cash flow.

Experienced investors say it’s crucial to persevere through the initial challenges while gradually building credibility through positive reviews, and I believe them. Additionally, I'm banking on a future opportunity to refinance.

After less than a year, here are a few tips from what I’ve learned:

• *Hire a local STR expert real estate agent to guide your investment location.
• *Buy (in) the right property/building to ensure compliance.
• *Look for properties where you can gain immediate equity by buying at a low price.
• *Prepare for high insurance costs by running a few properties by your STR insurance company before making a purchase.
• *Have sufficient capital to 1) invest in exceptional design and amenities to stand out in a saturated market and 2) endure the low season.
• *Self-manage your property for at least one year to maximize profits and ensure quality guest experiences.

Hopefully, this helps in some way.