Which Is the Better Market? Myrtle Beach, SC vs Orlando, FL

Short-Term & Vacation Rental Discussions

Which Is the Better Market? Myrtle Beach, SC vs Orlando, FL

Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes

Hi all,

I'm an OOS investor from CA looking to acquire a STR investment property in either Orlando, FL or Myrtle Beach, SC. We're also open to other markets. My husband and I have a HELOC for 150k on our primary residence. We'd like to be all in at 350K if at all possible during these crazy times.

We'd like do the following.

- Use part of the HELOC as the down payment on a STR that needs rehab

- Use the other part of it to rehab the property

- If any is left, use that as a down payment on another property for either STR or LTR.

We're also open to DSCR loans and creative financing!

Any advice, insight or suggestions? Thanks!

3 Reply

289 views

Most Popular Reply

Jeff Langley

Member since 2021 · 167 posts · 141 votes

Why not buy one in each location by using a 10% second home loan? If you're dti doesn't allow both, do one 10% second home and one 20% DSCR. If you're worried about the risk, IMO doing nothing is riskier than doing something.

4 Reply

See this reply in the discussion

51 Replies

Jump to latestLatest

Sort by

Matt PursleyPro Member
Investor · Greensboro, NC · Member since 2020 · 96 posts · 73 votes
4y
As someone from the Carolinas as well as happens to have to travel to Orlando frequently for work I feel comfortable knowing both markets. If you're looking for STR the reality is both are great markets. We saw what Covid did to Disney world. IMO, outside of Disney, Orlando is lame, BUT IT"S GROWING RAPIDLY! I think you'll see a lot of competition in the coming years, but for now if you can find a good deal and pull the trigger, I'd ride the Orlando wave for the next few years, especially with the excitement of Disney being opened this summer almost as usual. I was just there 2 weeks ago and DISNEY WAS POPPIN!!! So many Disney folks.
However, Myrtle is weirdly not going anywhere. North Myrtle is classy, typically more affluent and senior. South Myrtle is the party spot, still busy, but a different crowd. But people from all over go to Myrtle. I'm not sure if this is helping, but you just have to decide what excites you more and then go off of that.
3 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
@Matt Pursley I am not familiar with the Carolinas at all so thank you for sharing the differences between the two areas there. What is your opinion on my plan to use the HELOC? Do you think 150K is enough to get started?

Thank you! This is helpful.

0 Reply
Matt PursleyPro Member
Investor · Greensboro, NC · Member since 2020 · 96 posts · 73 votes
4y
I'm not being snarky, but ANYTHING is enough to get started IMO. I don't know your risk tolerance or financial situation but yes, 150k is definitely enough but you have to consider your trade offs. If you want a Rent Ready home for STR in Myrtle you can spend all 150k as your 20% down payment for a beach front property. Is that what you want? OR would you rather have 2 properties slightly off the beach?
Of course you have to consider all expenses to ensure that you'll cash flow enough to pay the mortgage and the HELOC. Are you buying a distressed property and then refinancing to get your heloc back? These are the decisions and risks you have to feel comfortable with. Orlando will probably offer more affordable homes, but you have to really consider as a family of 4-6 what do they want in their trip to Disney. That's probably your target market. At least, those are my thoughts
0 Reply
Jeff Langley
Member since 2021 · 167 posts · 141 votes
4y
Why not buy one in each location by using a 10% second home loan? If you're dti doesn't allow both, do one 10% second home and one 20% DSCR. If you're worried about the risk, IMO doing nothing is riskier than doing something.

4 Reply
Joshua Strickland
Investor · Flowery Branch, GA · Member since 2019 · 413 posts · 412 votes
4y
Buy in the place that you'd rather personally vacation. Either way it will be very deal dependent. I personally don't like HELOCs. It's financing your down payment which can cause a cycle of debt that is hard to get out of. All of your profit will be going back to paying off your HELOC which is sort of a bummer. If you do a HELOC I'd shoot for a fixed rate and not variable, though most I've seen are variable.
2 Reply
Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
4y
@Sharonda Frazier I'm in Orlando and could help with the ins and outs here with regards to the STR market, but I don't know the Carolinas at all other than vacationing there a few times over a couple of decades.
With the market the way it is, finding a distressed property is hard enough, finding one that is in a good STR area is next to impossible. $350 won't get a townhouse here, let alone a single family in a decent neighborhood with the amenities needed to be successful as a short term rental. Not trying to be harsh, that is just the reality we are all in right now.
You could do, as others have suggested a second home loan at 10% and not have to worry about rehabbing it (okay, maybe some painting and cleaning and a little theming). Not sure about other markets, but 99% of the homes in good communities will come fully furnished and with future bookings in place. So you are getting a 'turn key business' basically. And with Spring break almost upon us and the summer season right behind, that is a big benefit to buying now. Inventory is incredibly low, prices are high, interest rates are climbing (DSCR will be even higher).
Best of luck to you! Keep us posted
2 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
Quote from @Jeff Langley:

Why not buy one in each location by using a 10% second home loan? If you're dti doesn't allow both, do one 10% second home and one 20% DSCR. If you're worried about the risk, IMO doing nothing is riskier than doing something.

Didn't think of this! Not too worried about the risk. I've been stuck in analysis paralysis for months scared to pull the trigger due to being out of state with no boots on the ground in any market outside of my own. I'll look into these options as well. Thanks!
0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
Quote from @Matt Pursley:

I'm not being snarky, but ANYTHING is enough to get started IMO. I don't know your risk tolerance or financial situation but yes, 150k is definitely enough but you have to consider your trade offs. If you want a Rent Ready home for STR in Myrtle you can spend all 150k as your 20% down payment for a beach front property. Is that what you want? OR would you rather have 2 properties slightly off the beach?
Of course you have to consider all expenses to ensure that you'll cash flow enough to pay the mortgage and the HELOC. Are you buying a distressed property and then refinancing to get your heloc back? These are the decisions and risks you have to feel comfortable with. Orlando will probably offer more affordable homes, but you have to really consider as a family of 4-6 what do they want in their trip to Disney. That's probably your target market. At least, those are my thoughts

Yes. I was hoping to buy a distressed property and refinance after rehab to pay back the HELOC. I am wondering the risk vs reward in doing this vs using the HELOC for a down payment and then being responsible for both the HELOC and the mortgage. I appreciate your feedback! I have a toddler and so my mind immediately goes to Orlando for Disney.
0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
Quote from @Joshua Strickland:

Buy in the place that you'd rather personally vacation. Either way it will be very deal dependent. I personally don't like HELOCs. It's financing your down payment which can cause a cycle of debt that is hard to get out of. All of your profit will be going back to paying off your HELOC which is sort of a bummer. If you do a HELOC I'd shoot for a fixed rate and not variable, though most I've seen are variable.

Yea.. I didn't think about the fact that I would be paying back the HELOC and the mortgage so it's just eat away at my profit. My initial reason for getting the HELOC was to do the BRRRR strategy with a LTR. I do have 80k saved of my own cash but didn't want to use it :-). Also, I have a baby girl and would love to take her to Disney when she's older so I am leaning towards Orlando for that reason. Thanks for your input.
0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
@Shawn McCormick All good things to know and consider! And yes this is the reality. I have looked into turn key properties (in my market) and would consider it. Are you familiar with any in Orlando? I am trying to purchase within the next month or so. Thank you!
0 Reply
Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
4y
Quote from @Sharonda Frazier:

@Shawn McCormick All good things to know and consider! And yes this is the reality. I have looked into turn key properties (in my market) and would consider it. Are you familiar with any in Orlando? I am trying to purchase within the next month or so. Thank you!

Yes, I have a 'top 10' or so that do very well (depending on size and community), but it is still up to you to manage it well and get good reviews etc. I have several under contract right now.
1 Reply
Michael Weigum
Real Estate Agent · Santa Rosa Beach, FL · Member since 2019 · 112 posts · 116 votes
4y
Hi @Sharonda Frazier
I'm in Myrtle Beach. I bought my first ocean front condo last year with a HELOC that I had on my house in Denver. I had a really good year last year with the condo, so much so that I purchased another one in January 2022 with a private money lender. It is up and running and doing well.
We are seasonal here in Myrtle Beach, but I personally beat the averages for the winter months, so that was a plus. There are certain requirements here for financing "Condotels" so it would be wise to talk with someone who knows the area and the laws.
I'd be happy to answer any questions you have and share my experiences.
1 Reply
Mike Davis
Lender · Annapolis, MD · Member since 2022 · 154 posts · 70 votes
4y
@Sharonda Frazier Just like @Matt Pursley I have traveled to both quite often. Either market would be a win. Good Luck!
1 Reply
Julia Bish
Member since 2021 · 2 posts · 2 votes
4y
@Sharonda Frazier idk about orlando but my North mrytle beach condo 2 bed 2 bath is booked through june and working on filling up for july. And a longterm renter for the off season lined up. Went live last week and had 11 bookings immediately. No ocean view. Lake view. About a 3-5 min walk to beach. I use pricelabs for pricing.
2 Reply
Lynn Berg
Rental Property Investor · South Amboy, NJ · Member since 2014 · 34 posts · 23 votes
4y

@Julia Bish Do you mind if I ask where it's located? We've been going to Myrtle Beach for over 10 years now and I love it. Last year I tried to get some information about condo fees and property management fees but the condo complex I called wasn't very helpful. They never returned my calls but I also never followed up because I heard that the crime rate was bad there and I lost my nerve. Has that been your experience?

0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
Orlando is a year round destination. It is not only home to Disney, but also countless conventions and events with over 2 million square feet of convention space. i would expect Myrtle Beach to have more seasonal swing. I have been to Orlando at least 20 times, mostly for business but several for family vacation too. I have never been to Myrtle Beach. At least from my destination, Orlando is much easier and cheaper to fly into. Only easier location is Las Vegas, which is the convention capital of the world. There are people successful in both destinations, so either could work. Keep in mind that in ANY city, location is key. So you don't just want to be in a city, you want a desirable location within that city.
2 Reply
Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
4y
$350k is a tricky budget in Orlando. Not that you can't find something in that range, but rather that to have the best success in Orlando you really want to do some theming on your place. The problem is the theming is going to cost the same regardless of what kind of property you put it in, but the returns are going to be exponentially increased on theming out an 8br single family home vs. a 3br townhouse. And it won't help with your brrrr since it won't actually increase the value of the home.
You can make it work, for sure, and some of the realtors here like Shawn can help you find a place. With that much cash you might be able to increase your budget a bit and get a place where the theming will really create some great returns, though of course only do what you're comfortable with!
Cosmic Vacations4.9174 Reviews
Website View Page
0 Reply
Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
4y
@Sharonda Frazier I don't know either market but you should do a comparison of insurance rates and property taxes. Florida has some of the highest insurance rates in the country. The average rate in FL is $1,960 vs $1,284 in S Carolina.
1 Reply
ThomasRoy Penland
Rental Property Investor · Albuquerque, NM · Member since 2020 · 53 posts · 32 votes
4y
@Sharonda Frazier
I have recently got into the Dunes Resort in Myrtle Beach. It is fantastic. They get about 85% occupancy even with Myrtle being more a summer resort. This is because of the water park they can enclose for year round usage. The minimum is about $215k for a studio and it is a condotel so as far as I know loans are not as easy to come by. But the return is about 7%. You can probably find something better elsewhere, but I’ve been very pleased with my investment in Myrtle. I bought last summer (July), so I received the month of august which was a big month, and I’ve received statements for January, which is usually the worst month.
2 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
@Julia Bish Wow, this sounds amazing. Good to know something off ocean will still do very well. Did you buy a turnkey property? I'm curious about the average cost of something like that. I would want to start with a 2bd 2ba myself. Do you use property management?
0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
Quote from @ThomasRoy Penland:

@Sharonda Frazier
I have recently got into the Dunes Resort in Myrtle Beach. It is fantastic. They get about 85% occupancy even with Myrtle being more a summer resort. This is because of the water park they can enclose for year round usage. The minimum is about $215k for a studio and it is a condotel so as far as I know loans are not as easy to come by. But the return is about 7%. You can probably find something better elsewhere, but I’ve been very pleased with my investment in Myrtle. I bought last summer (July), so I received the month of august which was a big month, and I’ve received statements for January, which is usually the worst month.

@ThomasRoy Penland I'm familiar with condotels in Las Vegas so this is definitely something to consider. Glad to hear your property is doing well!
0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
@Mike D'Arrigo I didn't consider this so thank you for bringing it up! Sounds like both markets will do great. In this case it comes down to average cost of property, property management fees and as you mentioned, property taxes. Thanks for your input.
0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
@Ryan Moyer I'm OK with a destination town AirBnb property not being a BRRRR. That's a great point about the theming in the 8br SFH vs. the condo. I would definitely need to hire someone to do the theming for the property. Let me know if you know of any companies that will handle that aspect. I am in California so I would need to hire for everything. Thanks for your input!
0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
@Joe Splitrock I am an hour flight from Las Vegas and believe me, I've been trying but that laws around STR are beyond strict. It's no longer allowed in the city limits at all except for the condotels (there are only 4 of them). Great point about the location within a city. Now I might just have to do as someone suggested and purchase in both locations!

0 Reply
Sharonda Frazier
OP
Rental Property Investor · Brentwood, CA · Member since 2022 · 24 posts · 9 votes
4y
@Mike Davis Thank you! All of this great feedback has me excited. I have been researching these areas for a while and from afar. It's nice to hear feedback from folks that have actually been there.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.