N.Myrtle Beach Airbnb

[Salvatore Gaglio]

Hey guys, 

First post here, I've been loving the knowledge I've gained from reading the blogs and can't get enough of the podcasts. I've been researching breaking into the STR market in the North Myrtle beach area. This endeavor was originally slated to be done as an LLC with 2 other partners. As my learning continued I realized the difficulty posed by obtaining a commercial loan; due to the LLC, the interest rate (as opposed to traditional loans), 25% down payment and the high costs associated with the "Condotels". I also learned lenders can be very selective with these types of properties.

We were looking to stay under the 200k threshold - 1 bedroom 1 bath ocean front properties. Seeing as this would bring a great element to anyone vacationing to MB looking to stay in an Airbnb. 

Since then I've changed my approach after doing some digging on different ways to strategically gain a loan without going through the LLC. My game plan is to apply for a second home/vacation loan for our first property. 10% down possibly 3% interest rate 30 year. Which is much more appealing to our bottom line and monthly figures. The idea of refinancing after a 7 year commercial loan with 25% down was simply too daunting and didn't make financial sense. Since we would still be acquiring as a team, we would all be on the loan and title.

As for properties after this one we would apply for an investment property loan: 25% down slightly higher interest rate but still better than the commercial loan. And again at a 30 year fixed rate. 

How does this strategy sound to you guys?

Additionally if anyone can recommend a good agent in the Myrtle beach area who has a focus on str properties which can cash flow I am all ears. I’ve checked the “agents” section and have sent out some messages but would love to see if anyone else has recommendations. 

I understand this is a pretty lengthy post however I feel if any platform can aid me this is the one. Looking forward to hearing from everyone. 

Thanks a lot everyone ! 

[Alexander Knowles]

@Salvatore Gaglio there are only a couple of lenders that will do condotels down here. The last rates and terms I heard were something like 30% down/ 5% interest rate on a 15-year amortization. You can find other oceanfront condo complexes in North Myrtle or Surfside City that are not "condotels" that might be worth exploring, but you will still have the HOA to deal with. Pursuing single-family homes in North Myrtle or Surfside City are good options. If you are having partners on the deal - see which one can qualify for a second home conventional mortgage and have them qualify, and then write everyone else into the deed and then quit-claim warranty it into the LLC with your partners after you close!