I'm trying to decide which area would be best to buy my first rental property. I know HOA fee's are high. I was doing some research on Airbnb. I saw a condo in Myrtle beach that's listed at $100k-$160k. Other tenants look like they're making about $5-6k a month through airbnb. Nightly rent $119. plus $85 cleaning fee. 2 night min. averages . If they rent 31 days it's alot. I was wondering if anyone had any experience with Myrtle beach condo's and airbnb they can share with me.
My honest opinion is prices are too high on those right not to make any decent returns. All prices are high around here, however when you deal with vacation rentals in this area it drops off a lot come October and does not pick up again until March. So during the July-August I believe you will be pretty successful with keeping it booked non stop, come the winter months, some are lucky to get any bookings in the month. And this is with a decent economy, think of when it slows down. You are right with the HOA fees being much higher, and to have a local place manage it short term, you will be looking at in the 40-60% range. If you decide to try the Airbnb route, then you get to experience the lack of people wanting to work around here. I had a tough time finding reliable people years back and that's part of what pushed me to start my own construction company that handles everything possible to do with a home form general mgmt and cleaning to building additions and remodels. I would not want to try to attempt it from out of state. Also look at what the taxes will run, it being short term rental the city will hit you with an accommodation tax and you will also be required to get a bness license to operate in the city. I am not trying to discourage you, just make sure to do your homework and buy right so you dont buy a liability instead of an asset.
There is money to be made in these places, you just need to make sure you buy it right, and with the market the way it is down here now, almost everything on the mls the agents have them priced more for people who want to live in, not for investors to make money on.
A realator called me today. He said he wont sell anything less than $100k. There are a bunch of $50k investment condos but he said noone will want to rent them. For ex. Sea mist and bluewater in Myrtle. I get that they're not the taj mahal but seems realators just want to hustle anyone they can into more money.
@Carley C. If there are a bunch of $50K investment condos, your solution is simple, go direct to all of the listing agents. If they’re investment condos some will have T12s, use a PM, etc. so you’ll be able to gauge to occupancy parameters. I looked in Myrtle Beach a little, it wasn’t pretty in the SFR front. Like with all STRs, manage fees hurt, taxes aren’t friendly, and expenses are (appropriately) high. High because of STR and high because of pesky salt water.
Not to mention, if the $50K condos were simple money makers...there wouldn’t be a bunch for sale...
Your best bet would be to contact the PM's there that actually manage the short term rentals. The good ones can give you the break down of rental revenue vs. actual costs. Here in NC, there are a lot of SFR's and duplexes on the beach, not as commercial as Myrtle Beach. The rental income generated the closer you get to beachfront is exponential. One outer banks property manager told me if you could make your money back, expenses included, in 16 weeks, the rest would be positive. I know that sounds like a lot of vacancy. I will say that rental income seems to be up the past 3 years.