Vacation rental info

[Joe Curry]

I'm in Myrtle Beach this weekend with my daughter for a softball training/tournament. While walking to a local venue I came across a 5 unit apartment complex for sale by owner. Naturally I called to inquire. He was close by and stopped to show me the place. Nice units, well maintained. $450,000. Currently rented monthly for $700-800 per unit. I asked about weekly rentals and he said he tried it but it was to much work. Running some numbers in my head I figured I could net somewhere around $1400 each unit during peak season by renting it weekly. I ran to a local real estate brokerage (JP Real Estate Experts) and talked with Jerry the owner. Great guy who gave me great insight!! Jerry is also an investor and quickly and candidly explained vacation rental properties to me. He first stated that the property I was looking at was not zoned for short term rentals (did not even think of that) he went on to layout a lot of great info for me. When purchasing in vacation locations it is often better to purchase a one bedroom unit if you are looking for cash on cash return. (Which I am) He stated this was because it is easier to rent all year round rather than having 2-3 bedrooms which rent primarily when kids are not in school. Makes sense. Invaluable insight for me. Also he talked about HOA fees. This is key. One to make sure that the HOA company running the building you buy into is on the up and up. Some HOA's are delinquent because of tenant non payment some are in litigation and others are just poorly managed. This is where finding a local PROFESSIONAL real estate agent who know investments will save you lots of $$$ from making a bad purchase. Also make sure you know what the HOA fees cover. He said some HOA fees in this area are $600 a month!! But that covers all utilities, cleaning, building care, pool maintenance and so on. He really gave me great info on vacation rentals. HIGHLIGHTS- 1. work with a knowledgable real estate agent. Preferably an investor 2. One bedrooms are good for year round tenancy 3. Be conscious of HOA's Sorry for the long post but it was great info...