Condotels-Worth purchase or no?

Question

Good Afternoon. I hope everyone is killing it in the real estate market!

I'm purchasing a condotel 2bed 2bath in North Myrtle Beach, SC.

I'd appreciate any feedback on anyone with experience

Please share. Thanks and Live with Passion!

Steve

Steve Shields · Answer

LOL! Absolutely not.

How is the GA market now? I love the Charleston/Savannah area.

Steve Shields · Answer

Thanks for reaching out Michael. We are  looking at Bay Watch Resort. As I posted earlier, a friend has 4 units and she is doing tremendously well with them. Apparently the building has a program in-house but we have not hired anyone yet. Open to all suggestions since this is my first place in SC. We are also looking down by Charleston.

Myrtle Mike Thompson · Answer

Hey Steve, it's honestly hard to go wrong right now in North Myrtle.  Which resort/building are you looking at?  What's your plan for property management?

Joshua Strickland · Answer

@Steve Shields I don’t have any STRs in GA but those markets are as hot as any to my knowledge. For STR and LTR

Joshua Strickland · Answer

Sounds right. They aren’t having any of that 10% down stuff with condotels!

Steve Shields · Answer

They quoted me 4% for a 15 yr with 30% down. A friend of mine owns 4 units and has been producing positive income for 3 yrs now. We have owned single family vacation rentals and 4 families. This is a new venture. Thanks for the advise Joshua.

Joshua Strickland · Answer

I can tell you financing for a condotel is a whole different ball game and dealing with the HOA can sometimes be a challenge. Lower price point then a SFH is attractive, but your down payment will still probably be higher.