All Forum Posts by: Alexander Knowles

Condos are a great way to get your foot in the door and start generating some cash. But after HOA fees and the in-house rental management company, you'll be close to breaking even. Really depends on what you are after. I have been encouraging investors to look into doing BRRRR-BnB type strategies with single-family units as there is such a demand for those. The catch is finding a good deal that isn't restricted by HOA by-laws!

Hey @Cindy Caldwell - happy to help you on your search in Myrtle Beach. Are you planning to self manage or outsource it to a local provider? I would recommend looking further north into North Myrtle Beach/Cherry Grove or south into Murrels Inlet/Pawley’s Island. Myrtle Beach is great but is getting very saturated with short term rentals and property managers charging high fees. Narrow down exactly what you want (condo vs single family vs multi family) as there is a vast selection! 

@Joshua Hill - happy to help as well or need anything specifically in North Myrtle/Cherry Grove area!

@Ryan Bugler - me and my partner are interested in your area although we are based in the Myrtle Beach area. Keep us in mind if you come this way or if we pass through your way! 

@Nate Ginsberg - definitely check out North Myrtle Beach and Cherry Grove - although deals there are very hard to come by right now. Also need consider HOA fees, capital contributions and restrictions if you buy in one as many properties are in an HOA these days. Would recommend self-managing as @Chace Corbett said as those management companies will charge you and arm and a leg.

@Jacob Glodde - I am in the same boat. Recently moved to the Myrtle Beach area due to my wife getting a good gig out here. Told me to figure it out, so here we are. 

Similar to the post above - I am trying to narrow down a subdivision and area and start "farming". Door hangers, walking my dog through the neighbourhoods, joining local boards/chambers, attending any networking event I can on the Meet Up app, joined a couple of different gyms, just trying to get out there as much as possible. I know lots of "gurus" encourage new agents to chase FSBOs and expired listings - but our market these are selling so quickly there are very few to chase. I am preparing for 6-9 months with no closings but hoping that is not the case! 

@Erik Petrovich - it is not just capital improvements, but it is called a capital contribution. It's a flat fee to the HOA once you close and occurs every time the property sells. They can run anywhere from a few hundred to a few thousand depending on the HOA you buy into. I do not have any STR personally but I would recommend just calling these big management companies and seeing what they are charging and posing as a potential vacation-maker. They are very seasonal, months June, July, August will be very different from January/February, and get your range from there.

@Erik Petrovich - agreed with @Daniel Denning, look into the North Myrtle area where prices are not as high and you can command a higher rental premium. More older families head to North Myrtle as it is not as busy as Myrtle proper and are willing to pay a premium for a nicer place. Other factors you want to consider are capital contributions to the HOA's once you purchase the property - some of these can be up to few thousand dollars and lots of buyers in the area do not calculate for this. The management companies down here dominate and have obviously had their strong-hold well before the likes of Air BnB/VRBO showed up - self-management is the way to go if you have the bandwidth and skills to do so.

@Anthony Catoni - although contrary to the investor mindset, have you thought about new construction using your VA loan as your primary residence? Plus the new builders likely have great closing cost credits and you can usually get a below-asking price for spec homes/model homes. The home will certainly qualify for the stringent rules of a VA, plus you can get it near-100% financed and keep your dry powder for the fixer-upper you are looking to acquire. There are downsides of course, but just bringing an idea to the forum.

Hi Dr. C @Chad A Carlsson - I would second @Joseph Firmin by following your long term goals. Can you run your exact forecasted expenses (capital gains tax, commissions and closing fees) and see where you end up? Sounds like a good deal if you effectively halve the cost of those fees and frees up some capital to find something new. If you do hold it, you would also need to factor in management, potential headaches as well as a "premium" for whatever makes you sleep well at night being so far away. 

A 1031 exchange may be a good move - make sure you start identifying properties before you sell and follow the steps in order to move the net proceeds to an escrow account so you can roll that into your next investment within the 45-day window.