All Forum Posts by: Alexander Knowles

@Kyle Ewanic - Sounds like you already have some skills with contracting? This entire coastline is booming with construction and remodelling and is in dire need of help - maybe starting your own handyman business or something that utilizes your current skillset could be a starting point? You can attend investing meetups/networking events and you will be connecting investors, potential sellers who are looking for your skills and the bonus is you'll have first dibs on homes that need remodelling?

Either way - you are starting off the right way by getting amongst the BP community! 

@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!

@Lisa Beard - I am also looking for some competitive rates and terms for a cash-out refinance in SC! Did anyone reach out?

@Daniel Walton as mentioned above - those HOAs can make or break your cash flow. To stand out and compete - it is best to find a 1bed condo with established historical short term rent coming in or at least find a good property manager that manages a bunch within the same resort/building so they know how to market or have an established clientele. Having an updated/renovated unit can help as well. Otherwise, you may want to direct your search toward single-family homes with no HOAs and are your turnkey short term rentals. You'll be able to find these in Cherry Grove (North Myrtle Beach) and Surfside City. Make sure your realtor asks for historical rents as well! 

@Daniella Steinberg - great state to invest in! Landlord friendly, solid economy made up of large employers (manufacturing, universities, healthcare, tourism) and growth like much of the south-east. Definitely need to watch the taxes as these can double or triple from it being a primary residence at the new investment property tax rate! Would also recommend checking flood zones and areas subject to flooding as this is becoming an increasing problem.

It is definitely a worthwhile pursuit but you have to remember you are running a mini-hotel service and is definitely more management intensive. The management expense is usually the cash flow killer for investors, but they are worth their weight in gold when you account for the headaches and cleaning that needs to be done. If you are able to self manage then you're eliminating that 10-30% management expense for yourself which makes it look good on paper - but remember to account for your time and effort to make it successfully work. Depending on your area, these are becoming very competitive (there is still a huge demand) so it is important to weigh the quality of service/management in order to gain positive reviews and retain repeat customers. 

@Gina Jackson - sounds like some good lessons! Glad you are staying persistent and pushing through. On the property management side - many will try to strong-arm you to use their own but I have had instances where new owners have to honor current bookings for 90-days when the title is transferred. Of course, each condo community has their own by-laws but it is definitely possible to get away from their management. 

On the renovation side - would suggest researching popular similar condos that will be your competitors. Updating the kitchen down here goes a long way seeing as there are many condos that have their original kitchens!

@Gina Jackson - curious to hear the regulations and hoops you bumped into (without getting into too much personal detail)? NMB is a hot spot for STRs and investors. The big local property management companies dominate there - do you plan to manage yourself?

Agreed - a single family can make you stand out and these are in high demand by renters as people are driving to vacation more than ever. The key variable in making a good return is figuring out the management piece - if you are able to self-manage you will be in good stead. 

@William Vandermark - it is definitely a great place to invest (and vacation!). Would encourage you to look at Cherry Grove/North Myrtle and then Surfside and Murrells Inlet. Condos are great if you can make it work with the HOA fees and get away from the condotel management. Other things to consider with SFR are the extra maintenance and capex, furnishings, and also the management side. You should be able to finance it as a second-home (granted you don't have any other second-home loans). It is competitive so make sure you have your numbers and you stick to them amidst a bidding war!