Hell0o Everyone :-) Hope All Enjoyed your Holiday weekend*
I am new to investing and decided I want my 1st venture a Vacation Home in Myrtle Beach, SC. I seen many condo's for sale around $25K to 100K but those HOA fee's steer me away. So I was thinking just to buy a house, fix it up, and rent through out the year here in Myrtle Beach.
I would like any suggestions from BP as far how, when, where to begin this new task I'm giving myself for the summer. I have not yet got the funds, I was thinking to use hard money lenders for the purchase and rehab the property I choose. Then hire a property management company to keep it rented.
I'm sure there is more than just these simple steps which I think might take me awhile to fully understand, due to me doing this alone.
**Any advice or suggestions, positive or negative is welcome :-)**
What is the average median sales price for that county? Also are you going to get this property from the MLS or send out direct mail? Finally what percentage or discount are you seeking on the CMV or "as-is" value for your first rental?
I notice more south of the Beach towards surfside it gets cheaper like arpund 45k to 65k further north much higher. But I want to stay near the attractions near 501...
Haven't thought about looking on MLS for vacation homes...
My rental pricing not sure I was going to compare the rates in the area and the longer they stay the cheaper my rental. From $150 to $450 a night....
I'm seeking a 3bedroom or larger home for the vacation home.
I don't know the Myrtle Beach area that well so I'm not highly capable of speaking on the property value. However, if you are renting out a vacation home of 3 bedrooms then you will probably want to get much more than $150 a night for it.
Also, a hard money loan can be a very tricky endeavor. Unless you already done so I would suggest finding out every piece of information you can from your lender about the entire loan structure. Most seem to only lend for a few years at most, and if you can't pay off the loan at that point it is possible they will simply take over the property itself. I've never seen it done but I have heard of people who have actually lost their property to a hard money lender, not for being late, but for not paying off the loan completely after just a couple years...and the homes were still producing just fine.
I don't want to scare you away. Hard money can be a great way to get the ball rolling. But if you can't refi or pay off that loan completely then it may also be a great way to loss the property. BTW if you have already found some hard money lenders would you mind letting us know who they are?
I actually just did a small search on google and came up with these... "Carolina hard money" and "Ground Floor". That's the thing before I even receive or look at my loan options I want to set property management company in place so I'm not loosing too much. I hear to make a real profit from vacation homes it should be rented at least minimum of 35 weeks of the year. So my focus is actually on the property management that can help me achieve that. As far as paying them off my goal will be to pay em back in 2 years tops or less.
I need to purchase that no money down book, lol
Still lots to research but I'm sure the more I search the answer will come about.
Latoya Coleman how severe are the HOA fees? At 25k per door, I find it hard to believe that you can't cash flow that property in a vacation area like that.
Yeah that's the thing I'm just setting low numbers so I can be sure to rent out. Maybe its my confidence level in the process I don't want to get left with an empty unit over 2 days. I would love to rent each day/weekend but I know thats not possible in the beginning me being a newbie and all. Some hoa's are as high as $800 monthly, I just feel that is taken away from my pocket if I cannot make the fee's to pay.
Welcome take full advantage of the BP resources.
To find out the going rate search Home Away website see what the competition charges.
To find a PM go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.
You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
Thank you @Paul Timmins
Great information and will definitely do my searches. I'm putting in more time than last year into bigger pockets... I might soon become a plus/pro member to take full advantage of what I'm learning to do better with my new career in investments. Small steps are getting bigger. Reaching out to more people than before, since relocating to Myrtle Beach putting more time into me. ;-)
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