All Forum Posts by: Alexander Knowles

A great conversation starter, @Myrtle Mike Thompson. 

I recently advertised my last 3/2 SFH for rent and it gained over 200 inquiries - I was so overwhelmed I had to delete it and then went ahead and screened those applicants that applied. In hindsight, I felt were advertising already "premium" rent, but after this experience, we will be definitely increasing rents on our next one that will be up this summer. Definitely highlights the need for LTRs in this area. We have a huge full-time population boom - including those sectors that are supporting a majority of the "retirees" moving to the area - i.e: multiple hospitals, construction workers, Coastal Carolina University, many service-based professional industries (HVAC, plumbers, automotive repair) - where wages are great and employment is very solid. Historically, there has been very little multi-family housing in Myrtle Beach, but it doesn't take a lot to drive down Highway 31 and see the many complexes that are being built (largely funded by institutional investors I believe). I am curious to see if this puts a dent in the extreme demand for LTR. As @Michael Weigum mentioned, there is a "mid-term" rental opportunity at play right now as well as many people moving to the area are building and have to wait for their new construction to be finished. I'd be curious to learn what numbers look like for 6-month leases and how to make sure these are properly managed.

Safe to say, the demand for LTRs is there, it is a question if the purchase price makes it work for the rents and how/if to out-bid those buyers who are purchasing the home for their primary residence. South Carolina, as a whole, makes for a great state to invest in and is very landlord-friendly. If numbers can work with the extra investment property tax, these can be great long-term investments. 

@German Hall - you find that PDF? You will want to make sure you cross-reference it with the Code of Ordinances. Anything single family within the City of Myrtle Beach you will pretty much be limited. City of North Myrtle Beach and City of Surfside Beach for single-family is where you will want to be looking for single families. Condos are a pretty sure bet up and down each municipality.

Hey @Jace Perry - we have a great investors meet up that can be found on the Meet Up app - look up Horry County REIA. Meet the first Tuesday of every month!

@Esteban Valverde - SC is a very landlord-friendly state. You can begin evictions after 5 days of a tenant not paying rent. You can find the residential landlord and tenant act by searching "SC residential landlord and tenant act" and reading the code yourself. Taxes are also friendly comparatively to other states. It is important to note that there is a significant difference between resident property taxes and investment/second home taxes. These can sometimes be double or even triple that of a primary residents property taxes. 

@Mark Fitzpatrick - sounds like you are doing well with renting it so why change it? If you have an idea on where to park the extra capital from selling then it may be something to consider. With that amount - you could roll it into a larger piece of property such as a single-family STR that may get a higher yield than what you are currently receiving. If you don't, then keep it and possibly raise the rent if it hasn't been raised in a couple of years. Refinancing is also a great option, but you would need to consider the different financing terms/rates with condos to make an effective decision. There is no problem in holding onto it as well!

@Curtis Wang - this has been a popular topic the past few months. Definitely use the search bar and set up keyword alerts to see other discussions on this topic! 

A plug for Myrtle Beach - makes a great STR spot. Make sure you are looking into North Myrtle Beach/Cherry Grove or Surfside Beach as they are geared to be more STR friendly. You'll be competitive and looking for annual gross rents of 10-15% of the purchase price in those areas.

@Josh M. - ADR's vary from condo to single-family, really depends on what type you are looking for, # people it can sleep, amenities offered etc. Occupancy rates range from ~60% and up above 80% in some cases if managed well with repeat guests. March through to the end of Labor Weekend is pretty much peak season, with guests frequent through to the New Years celebrations. January/February would be the slowest time of year for most. 

@Josh M. - as @Joshua Strickland said - figure out if are looking for a beach or mountain market. I will put in a plug for North Myrtle Beach, specifically the Cherry Grove area as it is within your investment range. Not quite beachfront, but close enough to do very well. North Myrtle Beach/Cherry Grove has been built off short term rentals, so rules and laws are very favourable to STRs. Coupled with the accessibility from visitors in larger markets (i.e: a "gas tank" destination), 19 million visitors annually, and overall affordability of vacationing (and living) - makes it a great candidate for an STR.

@Kevin Mercado - Myrtle Beach is a stalwart right now. There is a vast selection of both condos and single-family homes that are providing some impressive returns as STR's right now. Your best bets will be to look at the North Myrtle Beach or Surfside markets and to decide if you are looking for a single-family or if a condo is more your speed. Management plays a big factor in your profit margin. Happy to discuss further!

@Joshua Strickland not quite beachfront, possibly second row or a couple of blocks back - but close enough to bring in close to 1% gross revenue of the purchase price. As long as you have amenities (pool, good backyard, golf cart etc.) to make up for the proximity.