Myrtle Beach STR

[Gabriel Oquendo]

Hey all!

I'm looking to invest in Myrtle Beach at the beginning of 2024. What are your thoughts on the state of the market and potential growth opportunities? I've heard that HOA fees and seasonality have made it hard to cashflow, is this true?

[Myrtle Mike Thompson]

@Gabriel Oquendo The STR market is still quite healthy here in Myrtle Beach and the other nearby beaches comprising the Grand Strand. Occupancy is down slightly from the last two years as the Covid effect has worn off, but average nightly rates are up. Demand is likely to remain strong as Myrtle Beach was once again named the fastest growing place in the country for 2023-2024. Some of the condo communities and resorts were hit with large insurance assessments this year - a byproduct of the catastrophic storms that have plagued insurance carriers servicing coastal markets like Florida. One thing I love about the Myrtle Beach area is we can find positive cash flow at nearly all price points. If you're looking to leverage a mortgage, plan on a 25% down payment for a condo/townhome... the vast majority here are non-warrantable. If your budget will allow for a purchase of $400k or more, a single-family house within walking distance of the beach will likely yield higher return and a larger runway for appreciation. 4-bedroom channel homes in the popular Cherry Grove section of North Myrtle Beach go for around $600-$800k. Smaller 3/2 homes can be had for $400-$500k in Windy Hill and Crescent Beach, and there's some options worth considering down in Surfside Beach and Garden City Beach. If you're serious about making a purchase next year, I would recommend aligning yourself with a local investor-friendly agent and begin sharpening your focus and strategy. Feel free to reach out if I can help, and good luck!