SOUTH CAROLINA or GEORGIA BEACH MARKETS?

Question

Can anyone suggest beach markets in SC and/or GA that allow STRs and cash flow with 20% down? (other than Myrtle Beach) Thanks!!

Troy Gandee · Answer

@Kevin Hintz It's property dependent, obviously, but last year, I sold one a street back from the beach that they're cash flowing. I think they put down around 20%. And I believe they're going to be looking for another one pretty soon. You just have to make it more exciting than the competition. A lot of the beach rentals down there are pretty outdated and don't provide many amenities. The flood insurance has also been extremely unpredictable at any of these beaches, so that's a bit of a curve ball.

Kevin Hintz · Answer

For beach markets in SC and GA, you might want to check out Charleston or Hilton Head in SC, and Savannah or Tybee Island in GA. They have decent rental markets, and there are options where you could get in with a 20% down payment.

John Kirtley · Answer

@Troy Gandee Makes sense. Can you cash flow w 20% down?

Troy Gandee · Answer

@John Kirtley It's definitely gone up a lot in value, but you can compare the values to Folly or Isle of Palms (Sullivans isn't really comparable) to see the future growth. IOP and Folly were both sleepy little boho beach towns just like 20 years ago. Now they're full of 5-10m homes. Edisto is on deck to be next. You can see huge homes being built all over the place there now.

John Kirtley · Answer

@Troy Gandee I’ve been to Edisto and remember how cheap it was a few years ago. But I poked around recently and I thought I had missed the bus?

Troy Gandee · Answer

@John Kirtley Most of the Charleston beaches have become too expensive to cash flow. Many of them now have very restrictive permitting requirements.

However, I have a real soft spot to Edisto Beach. A lot of people haven't even heard of it. It's our least developed beach. It's a little ways away from Charleston, which has kept it off the radar, but it's starting to become a more significant beach destination. For my money, I'd look there and let the market bring you up. It's not long till it looks more like Folly or Isle of Palms there. I've sold quite a few in that area.

I recently sold one I had on Seabrook Island because the club/regime/HOA were frequently changing the rules and making it harder to operate smoothly.

Myrtle Mike Thompson · Answer

@John Kirtley Have you ruled out Myrtle Beach?  Or did you simply mention it because you're already familiar with that one?  There's of course North Myrtle Beach as well.  You can find positive cash flow in both markets.  I also have a lending partner who can finance STR deals with only 15% down if you wanted to preserve some capital.

Ericka Parrott · Answer

Hi John, would you be interested in the Lake Lanier areas in GA in Hall or Forsyth counties?