Spring Lake, NC · Member since 2015 · 71 posts · 25 votes
I am having trouble finding buyers for vacation rentals. I have a deal under contract in North Myrtle Beach. Im not having a problem with the deal not being good for a buyer, but finding investors who deal in vacation rentals. Anybody here looking for a beach rental property or know someone who is? I have put out a few FB posts trying to gather buyers but no luck there.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y
Jason Layman There are plenty of us that are open to vacation rentals. Gross rents look awesome and then you look at the costs. Insurance (if you include wind/hail) is really high, property management is crazy high (and worth it), property taxes for an out-of-state non-owner-occupant are high, etc. Water/sewer is generally low but you (as the owner) are still on the hook for 100% of utilities. And if you’re looking at those 1970’s builds that haven’t really been updated too much, well, there are PLENTY of them on the market.
And this is from the perspective of someone that has specifically looked at Myrtle Beach and North Myrtle Beach.
I don’t think it’s an accident that you have a lot of properties that turn over about ever 5 years. The novelty (if it’s a drivable vacation spot) just wears off when the bills add up. And if you’ve owned “close to the beach” you have a good understanding of how salt air impacts your maintenance costs.
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
8y
I stayed in a VRBO not long ago at Myrtle Beach. I got an unbelievable deal. There were just so many of them I got the feeling that the market might be saturated.
Contractor · Milltown, NJ · Member since 2016 · 297 posts · 213 votes
8y
Jason Layman HOA fees are a massive turn-off at the beachfront high rises in that town. Finding decent returns after paying the property manager/cleaning crew is a killer as well. Taxes are extremely manageable, of course that is totally dependent on how much revenue is leftover to pay them. Maintenance issues should be relatively cheap as well. You say you have a deal, can you PM me at your next convenience so we can set something up?
Real Estate Agent · Myrtle Beach, SC · Member since 2016 · 63 posts · 34 votes
8y
I agree with @Robert S.. The HOA fees kill the deal more often than the price of the unit, and vacation rental units become riskier the later we are in an economic cycle. They may cash flow right now after HOA and Property Management fees, but all it takes is one little economic hiccup and those tourists go bye-bye.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y
Jason Layman There are plenty of us that are open to vacation rentals. Gross rents look awesome and then you look at the costs. Insurance (if you include wind/hail) is really high, property management is crazy high (and worth it), property taxes for an out-of-state non-owner-occupant are high, etc. Water/sewer is generally low but you (as the owner) are still on the hook for 100% of utilities. And if you’re looking at those 1970’s builds that haven’t really been updated too much, well, there are PLENTY of them on the market.
And this is from the perspective of someone that has specifically looked at Myrtle Beach and North Myrtle Beach.
I don’t think it’s an accident that you have a lot of properties that turn over about ever 5 years. The novelty (if it’s a drivable vacation spot) just wears off when the bills add up. And if you’ve owned “close to the beach” you have a good understanding of how salt air impacts your maintenance costs.
I'm new at this but very interested in acquiring some beach rental property. I live in Charlotte, NC so I'm looking at North Myrtle as a logical possibility since it is not too far a drive, and the prices seem the best in the Carolinas.
I see a number of condos under $100K on the ocean side of Hwy 17.
I also see the same for the oceanfront condotels.
I've read a lot here in forum entries about how it is so hard to have good cash flow, but it seems everyone was talking about the condotels where you are looking at at least 30% management fees.
What about if I get a place like the AirBnb where I stayed with my kids this summer on the ocean side of Hwy 17 within a walk of the beach. These places seem to rent effectively. I could hire a handyman service or something like that for repairs and just use AirBnb or VRBO to handle the bookings.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Dean Brown The more important thing than a handyman is someone that can clean and restock the property between occupancies. They also have to find out if anything or malfunctioning or broken and in need of the handyman. Faucets, toilet, internet, lights, air conditioning, washer/dryer, etc.
Yes, I say 'handyman" because I spoke with the guy who owns the AirBnb that I stayed in this summer, and he said he has a handyman service that also cleans, etc., but I will have to see if his company could really do all that is required or if I may have to find another company for that. Either way, isn't it possible to find companies that can do all that without taking such a huge percentage of the rent?