Myrtle Beach Oceanfront Condotel STR Case Study

[Myrtle Mike Thompson]

Hello investor friends,

I was analyzing a property recently for one of my buyer clients and thought it might serve as a helpful example for anyone considering a purchase in the Myrtle Beach area. I used the BiggerPockets "Rental Property" calculator to crunch the numbers as many of you are familiar with it and/or have access to it. I believe it's more suited for long-term rentals but I was able to adapt it for STR by taking the projected annual income and dividing by 12, so you'll see the revenue expressed as a monthly figure. This unit is at the Atlantica Resort, which is centrally located in Myrtle Beach and within close proximity to the boardwalk, sky wheel, and Myrtle Beach convention center. The unit is currently rented third-party through Hosteeva. They grossed roughly $44k in 2021 and had done $44k last year through October. The monthly HOA fee at Atlantica includes all utilities, and I budgeted $25/month for the business license required by the city to operate a short-term rental. The financing assumes a 20% down payment and 20-year term. I estimated the rate and closing costs. The cash on cash ROI and cap rate figures in the report are based on self-managing. Factoring in a 15% management fee would give us a 15.17% CoC and 10.59% cap. Would love to hear your thoughts/questions!

View report

*This link comes directly from our calculators, based on information input by the member who posted.