Resort Short Term Rental

[Erik Petrovich]

Good Morning BP Community,

Last week I posted about possibly looking at Short Term rentals as an investment vehicle. I have narrowed my market to Myrtle Beach, SC and have reached out to an agent, who seems to know the ins and outs of STR in Myrtle Beach. I am analyzing a few units that are in resorts. The units I am looking at are managed by the resort but the revenue doesn't seem that good. Comp unit generated - 2018 - $16,277 / 2019 - $17,533. Once the resort takes their cut and subtracts their cleaning and maintenance fees for the unit, the owner is left with $6,300 and $8,000 for each year to pay mortgage and HOA fees. Seems undoable unless HOA fees have been taken out before revenue is reported to owner. Just wanted to see if anyone has experience doing STR in resorts and what your experience has been.

[Erik Petrovich]

@Alexander Knowles & @Daniel Denning,

Makes sense to look in the north. I was looking at a few in the Sandcastle Resort and a couple others in the south and central. My agent is looking out for those capital improvements so I am prepared for that expense. He also said quite a few of the resorts have some major issues and are now starting to impose that cap ex on owners. What have either of you found is the best method of looking at comps to ball park what you should be earning? I have just been looking on AirBnB and VRBO at similar units in the resort to see what they are charging from Mar-Oct.