All Forum Posts by: Myrtle Mike Thompson

I use local property management partners for short-term rentals because they're much more time-consuming, but for a long-term rental I would encourage you to self-manage and save yourself the 8-12% management fee.  I can show you the ropes - it's not hard.

Whether or not a property will cash flow is heavily predicated on your down payment and financing strategy.  If you only put down 15-20% it's gonna be tough.  With 25%+ equity in the property, you should see some positive cash flow.  I'm a big fan of finding a somewhat distressed or dated property, doing some light renovations (new flooring, paint, possible kitchen makeover), and then renting it out.  The forced appreciation will help down the road if you want to refinance to pull some cash out for your next purchase.

@Ryan Cox It sounds like you've already connected with an agent, but I'm an investor and Realtor here in the Myrtle Beach market as well.  Happy to help.  Small multi-family properties are somewhat sparse in this region.  Most of the ones in North Myrtle Beach are zoned for short-term rental accommodations, and priced accordingly.  Meaning you would need to operate them as vacation rentals in order to make the numbers work.  I would consider looking in Little River and Conway.  You'll find a bit more inventory and prices that correlate better with a traditional long term rental strategy.

As for financing, you may need to go with a DSCR loan. I have a guy I can put you in touch with. These loans are underwritten based on the income potential of the property - not your own personal finances... so your employment status wouldn't be an issue. Just need a minimum credit score of 620. If it's 680 or higher you'll likely qualify for better rates.

Best of luck!

@Sachin Amin Are you looking to get into short-term rentals or traditional buy and hold?  If your trip takes you over the border into the Myrtle Beach and North Myrtle Beach areas I'd be happy to connect and discuss some options with you.

Nice work, Brandon!

@Viola Robarge I'd be happy to assist you. I specialize in second home/investment property purchases in the Myrtle Beach area and own a couple myself. I don't blame you for wanting to escape the cold! Can you finance 100% of the purchase and break even? No, probably not. But you can come close, depending on where you buy and what the HOA fees look like. I'll shoot you a direct message :)

Hey @Brad Currao, vacancy rates in the Myrtle Beach market are skewed by the massive amount of short and mid-term rental properties in the area.  My research shows some of the larger apartment complexes are at 10-12%.  Privately held properties such as single-family homes/condos have been running 7-10%.

@Sylvens Bellanton Welcome to the BiggerPockets community!  What markets in South Carolina are you interested in?  I can help with the greater Myrtle Beach area.

@Olecia Williams Though it's still possible to purchase a second/vacation home with only 10% down, it may not be your best option. Lenders assume more risk with a higher loan-to-value, so to compensate they'll charge more in points, loan level price adjustments, etc. The fees can be rather exorbitant. The last few STR deals I closed where my client used a second home loan, they ended up putting down 20-25%, preferring to have more equity in the property versus giving away thousands in fees to the lender. These were in the Myrtle Beach and North Myrtle Beach markets, but I believe this is a factor to consider in any market you're looking at.

Nice work!

@Tobias Joneses The answer to your question about making money on STR in Long Beach very well be "NO". Have you explored any other markets? Here in the Myrtle Beach area there are plenty of deals that will cash flow with a 25% down payment.