Myrtle beach STVR questions

[Adam Barr]

I am interested buying a short term vacation rental in the Myrtle beach area and looking for advice in a host of areas.

Here is some background:

-first time STVR investor

-investment property but plan to use personally with my family a few weeks / weekends a year

-being bought / titled in a family trust, will diversify other assets and provide a place we can enjoy

-looking in the garden city beach or Surfside beach areas

-looking for at least 5/5+ bed / bath, 2500+ sq ft, preferably bigger for my large family

-looking to be ON or near the beach

- budget up to low $1M range

-expect to pay cash but can finance up to $400k

-plan to hire a property manager as I live in Virginia

Here are some questions:

-better to pay more and be on the beach or less and be across the street?

-taxes appear to be a bit complicated, especially for an out of state investment property, help?

-what is a reasonable property mgmt fee %

-what cap rate should I expect on average? Either gross or net. Expenses are a little harder to project so initially focusing on gross, and it seems based on today’s prices it is around 10% gross from what I’ve seen so far and that seems low

-is one area preferable over the other?

-other things I should consider investing in this area?

Thanks for the help!

Adam