1st Deal, around 4-500k loan, which Southeast market?

Question

Hi all, If you were doing your first deal with a Heloc and your mortgage limit would be 400K-500K for a vacation home loan, which market in the Southeast would you choose right now, and why?

Looking for a regional, drivable market that I could maximize to ultimately scale.

Thank you for your help.

Joshua Strickland · Answer

Doesn’t really matter. Will be deal/management dependent. Blue Ridge, Smokies, Myrtle will all be good. If you’re looking at beach markets it will be hard to find a house for that right now and condos will have a higher down payment and interest rate typically than single-family homes.

Alexander Knowles · Answer

@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.

Justin Beasley · Answer

@Josh M. I would look towards Blue Ridge/Ellijay with that budget. There are also certain condo areas in Gburg/PF that perform well that you can get for sub-400.

Shane Lafleur · Answer

I am currently closing on a condo in North Myrtle Beach. Its a 3/2 condo, 1 unit off beach Front, still beach views and on beach side while under $400K. There's a few units beach front closer to $400K. I am able to use 2nd home loans (as it is Not a "Condotel").

Be mindful of HOAs as they are moderate in the area, so could stretch your deal based on what you can be approved for depending on your loan type, down payment, etc.

Mark DiPietro · Answer

Found it, average daily rate.

Mark DiPietro · Answer

Silly question, what does ADR mean?

Josh M. · Answer

Thank you @Alexander Knowles! Would you recommend single family over condos?

Alexander Knowles · Answer

@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. · Answer

Thanks @Alexander Knowles , do you know the ADR and avg Occupancy Rate for Cherry Grove / North Myrtle?

Collin Hays · Answer

Gatlinburg area is your surest bet. Just be patient and find a good deal. They are still out there!

1st Deal, around 4-500k loan, which Southeast market?

1st Deal, around 4-500k loan, which Southeast market?

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