Condo in Cherry Grove area of North Myrtle Beach, SC

[William Beyer]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $205,000
Cash invested: $60,000

One BR condo a block from the beach. Full renovation.

https://www.airbnb.com/rooms/667218668129634661?guests=1&adults=1&s=67&unique_share_id=ab36ef3e-24fd-426d-9d95-70ab8aac7bc2

What made you interested in investing in this type of deal?

The interest in short-term rentals in an area I recently moved to. Being near by, I was able to perform the renovation by myself and manage the property - even the cleaning. This approach is enabling me to learn a lot, quickly!. I am in the process of buying another unit in the same building.

How did you find this deal and how did you negotiate it?

I used a local realtor. Given I bought in the spring of 22 - in the peak of the market, I offered more than a should have - as is. That proved to cost me an additional $4K I wasn't expecting.

How did you finance this deal?

Commercial 20yr ARM with 25% down at 4.8%.

How did you add value to the deal?

The unit was all original and 30 years old. I was able to perform significant renovations, doing a lot of the work myself and my partner - accumulating some sweat equity.

What was the outcome?

The unit was put on Airbnb July 1 and has only been vacant 10 days through August - all guest provide a 5-Star rating.

Lessons learned? Challenges?

I should have employed the old adage of 'Trust but Verify'. I trusted what I was being told without verifying. I got burned for about $4K. All in all, I probably got off a little cheap for such a good lesson.