Been doing research since my last post and one of the top markets I came across has been Myrtle Beach on the ocean. It is STR friendly and thrives on tourism. Any thoughts/concerns? Anyone already in the market doing well?
Crunch your numbers.
Realize that property management can often run 35%+ and HOA fees $650+. Tourism is first thing to get axed in a recession. Summer is the only time you'll make money, the rest of the year you are extremely lucky to break even. Get rent comps from airbnb and vrbo.
Go in with this knowledge and you'll be fine.
The only part I’m not understanding and inplementinng in my model is 35% management fees. Airbnb charges 3% - can use great softwares to self manage and cleaning fees can be paid by guest.
If you mean right on the ocean, be aware that there are many houses built on stilts within a block or two of the beach e.g.
those stilts are really cheap hurricane insurance and add a free carport or storage if enclosed.
@Jeffrey Long any advice on mngmt
@Joseph Ammar if going with condotel you'll want to ask if your guests lose the amenities if you use off-site management. If not, then yes using off-site management will save you a few percent often. Look up Southern Coast Vacations, Elliot Vacation Rentals, Thomas Beach Vacations. You'll probably want one of those for a house anyway if you go that route.
Going the AirBNB self-managed route sounds like a lot of work for one property to me.
@Alan Feldman I'm here if you need boots on the ground. Moved down almost 2yrs ago from York, PA. Love every minute, although the heat takes a little time to get used to.
Its called the redneck riviera for a reason.
No way no, how would I. And I have before.
There are 2 weeks a year you better not rent it out and id recommend boarding it up, lol. Both bike weeks were hell on my properties.