Using the BRRRR Method on Oceanfront Condos — Anyone Else Doing This Near the Coast?

Question

Hey everyone,

I’m Brandon from Myrtle Beach, South Carolina. I work primarily with investors focused on short-term rental–friendly oceanfront properties, and something interesting has been happening here:

Many of my clients are applying a modified BRRRR strategy to dated oceanfront condos — essentially:
Buy older, underpriced units in established resorts → Renovate to STR-grade finishes → Rent on Airbnb/VRBO → Refinance after 12–18 months based on new income comps → Repeat with equity pull-out capital.

Even though condos can be trickier with financing and HOA dynamics, the math has worked surprisingly well when:

• The HOA allows STR operations.
• Renovations target higher ADR and occupancy.
• The appraisal reflects short-term rental income rather than long-term leases.

The HOA allows STR operations.

Renovations target higher ADR and occupancy.

The appraisal reflects short-term rental income rather than long-term leases.

I’ve noticed this approach works best when you treat each condo 
almost like a “micro–multifamily” — tracking cash flow, management 
efficiency, and appreciation just like you would for a small apartment 
deal.

Curious — has anyone else here applied the BRRRR method to condos or coastal properties instead of single-family or multifamily units?

How have your refinance experiences, appraisal values, or lender feedback compared to traditional BRRRR projects?

Would love to trade notes on what’s working (and what’s not) in different coastal or vacation markets.

HERE'S THE MATH ON THE SHORT TERM RENTAL BUSINESS FOR A 1-BEDROOM OCEANFRONT CONDO:

Disclaimer: All information given is meant to be educational. I am only
passing on historical information shared with me by owners, rental
companies, and various publications. I am not guaranteeing these
numbers, nor can I guarantee future rentals or appreciation. This
information is not intended to replace your own research, or to provide
legal, investment, or financial advice. Please consult an attorney for
legal advice.

— Brandon

Account Closed · Answer

Yes they will on a DSCR loan with 12 months of proven income and it appraises.  I am doing this on beachfront properties in Florida except I do not refi for three reasons.  It costs to much to close in Florida with the mortgage taxes, interest rates are too high still to make sense (6.3% to 7.3% depending on LTV) and I do not want to be over leveraged in this economy.  Honestly about the only way to make numbers work currently in alot of markets is buy and update.

Trent Reeve · Answer

a lot of times, the outdated condos are in outdated complexes. You can update the condo but not the complex.

Andrew Steffens · Answer

What lenders are lending on updated income rather than sales comps? This usually works for commercial but Ive never heard of lenders lending based on STR income - if so I am highly intrigued!

Dan H. · Answer

The appraised value should not be on income.

Similar concept but not condos.

My last 2 value adds have been coastal MF.   The value you can add when ARV PSF is over $2k is significant.   I added a half bathroom out of existing space on a unit and comps showed t added $50k of value.   I suspect adding that half bathroom cost me at most 50% more than it would cost in a cheap Midwest market.

Good luck

Jules Aton · Answer

Just started looking for next one considering NC coast Wilmington area.

Brandon Kunasek · Answer

@Jules Aton Nice. Do you own in Myrtle Beach? Florida?

Jules Aton · Answer

There are so many ugly, outdated beach condos. I've done it more out of a matter of necessity to stay in a price range but it makes sense if the numbers work.

Using the BRRRR Method on Oceanfront Condos — Anyone Else Doing This Near the Coast?

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