Retirement/investment property in Myrtle Beach

Member since 2025 · 3 posts · 1 vote

Hi all! My daughter owns a few long term rentals, so I have some real estate knowledge but I'm looking to invest in a short term rental that I can use in the winter months. What I want to do is take out a heloc of $100,000 on my primary home so I would have a decent down payment. My question is, if I found say a condo for $150,000 in Myrtle Beach, is it realistic for me to think that I could put the $100,000 from my heloc down on it, finance the rest and make enough money off it during the summer months to cover my heloc payment and the remaining monthly mortgage payment on it? Or is there a better way to do it? I want to use it for my own personal use in January, February and maybe March. I'm tired of the cold and snowy weather in my area! Thanks!

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Clayton Silva
Lender · CA · Member since 2018 · 637 posts · 393 votes
1y
Generally speaking HELOCs are going to have higher interest rates than 30 year fixed loans even on rentals. I would consider a couple things:
1) Smaller HELOC for down payment of 20-30% and a normal loan for the remaining balance. This will reduce your overall mortgage payments and to be frank, 30 year loans with sub 100k balances are extremely difficult to finance right now.
2) Likely avoid DSCR loans since you mentioned you plan on using the property for personal use and DSCR loans are fairly strict on business purpose rules.
3) Talk to other investors in the area and run pricelabs/airdna reports to get an understanding of what you can rent it out for to see if it is worth the capital outlay and cash flow. Make sure to note what months make the most money.
Hope this helps!
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- Viola Robarge
  OP
  Member since 2025 · 3 posts · 1 vote
  1y
  Quote from @Clayton Silva:
  
  Generally speaking HELOCs are going to have higher interest rates than 30 year fixed loans even on rentals. I would consider a couple things:
  1) Smaller HELOC for down payment of 20-30% and a normal loan for the remaining balance. This will reduce your overall mortgage payments and to be frank, 30 year loans with sub 100k balances are extremely difficult to finance right now.
  2) Likely avoid DSCR loans since you mentioned you plan on using the property for personal use and DSCR loans are fairly strict on business purpose rules.
  3) Talk to other investors in the area and run pricelabs/airdna reports to get an understanding of what you can rent it out for to see if it is worth the capital outlay and cash flow. Make sure to note what months make the most money.
  Hope this helps!
  Thanks for your input! This was helpful
  0 Reply
Michael K GallagherBusiness Member
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
1y
@Viola Robarge welcome to the forumns, there are many specific threads here on short term and vacation rentals, I'm not an expert in that asset nor in your interested market. However, I would advise you to give thought to something that either is muti unit, or that has the ability for you to stay in a sectioned off portion while the rest of the property is being used for incomes. This will maximize both your available days for rental and your flexibility in travel timing. But if you are considering putting $100K down and financing 50K your biggest issue will likely be finding a lender that will finance something so small, you are likely better off doing a standard 20% down loan and then using the additional capital you have from your heloc for furnishing/upgrades etc.
[email protected]614-362-2231
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- Viola Robarge
  OP
  Member since 2025 · 3 posts · 1 vote
  1y
  Quote from @Michael K Gallagher:
  
  @Viola Robarge welcome to the forumns, there are many specific threads here on short term and vacation rentals, I'm not an expert in that asset nor in your interested market. However, I would advise you to give thought to something that either is muti unit, or that has the ability for you to stay in a sectioned off portion while the rest of the property is being used for incomes. This will maximize both your available days for rental and your flexibility in travel timing. But if you are considering putting $100K down and financing 50K your biggest issue will likely be finding a lender that will finance something so small, you are likely better off doing a standard 20% down loan and then using the additional capital you have from your heloc for furnishing/upgrades etc.
  
  Thank you for your input! I appreciate it.
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Myrtle Mike ThompsonBusiness Member
Realtor · Myrtle Beach, SC · Member since 2016 · 350 posts · 204 votes
1y
@Viola Robarge I'd be happy to assist you. I specialize in second home/investment property purchases in the Myrtle Beach area and own a couple myself. I don't blame you for wanting to escape the cold! Can you finance 100% of the purchase and break even? No, probably not. But you can come close, depending on where you buy and what the HOA fees look like. I'll shoot you a direct message :)
[email protected]843-999-2301
Myrtle Mike Real Estate580 Reviews
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Dena Beck
Member since 2024 · 43 posts · 15 votes
1y
With the split of 100/50, I agree that in the area it may be tough to get it worked out. I'd ask sellers about owner financing some of it.
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