Hi i'm new to this thinking of buying a vacation rental in myrtle beach i have about 70,000 cash and was wondering how many weeks a year the average house or condo rent need to cover my expenses thanks
Rental quantity and quality vary depending on location, amenities, condition. A typical condo should rent from April-September with a peak in June/July.
would i be better off with a house or a condo
@James Judge From my experience, most people tend to rent out condos in Myrtle Beach. They are also reasonably priced but there is also the expensive HOA fees. Houses are a little more expensive, more prone to crime, require flood insurance and are not used as much as condos that have waterfront access.
However, Myrtle is still a very crowded area and I'm sure you would not have trouble renting it out either way!
My parents have rented out a condo in North Myrtle Beach for the past few years. Oceanside, two bedroom and in March the rate was $1,000/month. The rates do go up quite a bit starting in April and you can charge a much higher rate April-August (some parts of September as well). Many places charge weekly in the summer and monthly in the winter.
Depending on where you bought a home, you may/may not have to pay for flood insurance. You can look up the flood zones online or if you know of an area you're looking at, feel free to ask here and I'd be happy to help (I live in Myrtle Beach).
You also have to think about what type of renters you want to draw. In downtown Myrtle Beach, that area is not as nice and tends to draw a rougher crowd. There is money to be made but those areas are not as well kept. However, there are a lot of beachfront locations in nicer areas of town. If you are looking for yearly leases instead of weekly rentals, you would want to look at the school districts here. In my view, Carolina Forest and Socastee offer the better school districts. That said, it can be hard to find a deal in Carolina Forest to purchase, although there's always something out there, right?
Let me know if I can be of further help!
@James Judge $70k will get you an efficiency/studio/1 bedroom on the ocean or maybe 2 bedroom on the second row. Plan on an HOA fee of about $500-800/month.
Plan on vacation months (Apr-Aug) bringing in 3X what Winter months do in rent. Winters will likely not cash flow while Summers definitely will. It's a very seasonal market and I'd look at comparables on Air BNB to figure out what rooms are going for in different seasons.
I'm a realtor and investor in Myrtle Beach if you need any assistance just PM me.
James, exciting I love Myrtle Beach!
Steve is right some areas will be a good idea to purchase flood insurance even condos (high rise included) sometimes will require the association to carry flood insurance in what is called a Master Policy, this is likely passed through in the HOA dues. As with any property, you are looking at (especially on ocean/waterfront) you should do your research on the property to see if they have ever had a flood loss or flood claim this will dictate the premium. There are many options for flood insurance and much more coming to market in the near future however you need to work with an agent that can explain the options because they all have different coverages. Russ is nice to offer to be your guide in the area, I would take him up on it if you haven't already (Nice). Russ also mentioned that you can look at flood maps to see if the property is in the high-risk flood zone. I am going to put a link below that is from the government where you can enter any address and it will take you to the map and tell you if the property is in a High-risk flood zone. If you have any questions as to the zones let me know most will have a prefix of either A or V. Oh and by using this site sometimes it gets tripped up if you put in the zip code so I would suggest that you put it in with and without and see if the map is the same. I can help with a flood zone Determination if you want to run that just need the address.
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