All Forum Posts by: Chace Corbett

I had someone reach out to me about seller financing an apartment they own outright. I currently own 5 units on the same street so I know the demographics and it’s close to most of my other properties. It’s very conveniently located. They are looking to sell for $206,000 with a 20% down payment, 15 year term (no payoff within the first 5 years) and 7% interest rate. They are very open to negotiating the down payment, term and interest. However this person is in their 60s so a 30 year term would not make sense for them and their whole reason for selling financing is to avoid capital gains. I’m trying to think creatively on the best route to go. I’m not concerned about making a ton during the first 5 years because I know I’ll have the option to get another mortgage once rates have gone down and pay them off in full. I just don’t want to be negative cash flow. I’d love to hear some suggestions or strategies that have worked for other in similar situations .

@Carolann Hosey how much did you designate for vacancy, maintenance and cap ex? The cash flow looks nice but sometimes looks better than it is when all the numbers are accurately accounted for. Not saying you’re wrong just want to make sure these are conservative figures!

@Joshua Hill

My family has been doing rentals at the beach for close to 40 years! I love it down here and I've seen how much the area has grown/will continue to grow. Doing your research and having a stellar agent you should have no problems. There's plenty of opportunity to make successful investments here in MB area. Just research the area as there are so many parts to beach. I always tell people to be cautious of the crazy HOA fees that comes with some properties. If you're managing it you're own, it may be more tolerable. But most properties wouldn't yield enough profit to pay extreme HOA fees and a management company. As far as management companies, I have my own management company and manage close to 100 doors. I'd be happy to give you any helpful advice you might need. Always better to learn from other peoples mistakes!

@Joshua Hill

+1 (843) 424-6068 - this is her cell phone number so you can reach her directly!

As a back story, I asked the same question in a forum discussion and another local investor sent me her and another ladies info. I researched both and spoke to them and knew from the conversation who was more motivated to go out and find great deals. Best of luck and congrats on the decision to invest in the area!!

@Joshua Hill

Yana Lynch- she’s the best agent for investors in Myrtle Beach. She goes above and beyond for her clients.

@Nate Ginsberg

I love the Myrtle Beach area. From North Myrtle Beach all the way down to Pawleys Island is great. Different areas attract different kinds of tourists. North Myrtle/Cherry Grove is a great place for families and beach cottages that are a short distance from the ocean. The biggest to watch out for are the HOA's at some places. They will suck you dry of any positive cash flow. Will you be managing the property yourself or having someone else do it for you? Are you looking for a condo, townhome, house or multi family unit? This is a great area to invest and with the right property you will do well! Properties are flying off the market so you will want to be able to act quick! Good deals go fast around here but they're not impossible to find. Congrats on the search!!

@Garrett Ferrara

Up until now, I've only dealt with long term rentals here in Myrtle Beach. Personally, I like the idea of guaranteed money every month(Ofcourse you have to account for evictions but when properly screening tenants it doesn't seem to be as much of an issue). I have friends that own STR in MB and their numbers certainly have me rethinking some things. I'm currently closing on a townhome with no HOA and is zoned for short term and long term rentals. I feel more comfortable with this since I'm able to rent it by the day or week in the summer months and then lease it 3-6 months for the snowbirds in the winter. Here's what I've learned about Myrtle Beach, especially in the last year with a Covid hitting. It is a 1 gas tank destination. This means most people who come and vacation here can get here off one tank of gas. Compared to other beach vacation cities, it is fairly inexpensive. With that being said, I think it attracts lots of people even when something like Covid hits. That's not to say plenty of people weren't hurt by a Covid who own property here, but I have talked with plenty of people who still did really well this summer with their STR. I think it comes down to finding the right property. People will continue to flock to Myrtle Beach. If you can find a dually zoned unit with little or no HOA then you are setting yourself up for a lot better return IMO.

@Subbu Munagala

Let me know if you would be interested in the Myrtle Beach area!

So I was reading up about the new stimulus package and saw that the government is extending the moratorium through the end of 2021. How is this going to impact your investment properties? What things will you change now that we have at least 12 more months of this? I was fortunate to not to be severely impacted with my rentals through Covid-19 this year, but I fear that may change in 2021. I’d like to know how you plan to prepare for this and what action you will take?

@Nina Granberry

Everyone has a different opinion and plan that works for them. It seems like a lot of people have shared some great ideas! If it was me, I would make sure to save up a 6 month reserve (this will give you great peace of mind) and once you’ve reached that, start using the cash flow to invest back into more property. I just wouldn’t recommend over extending yourself. You’d hate to buy more property and not have the reserve to take care of the property you already have. Some people don’t mind the risk- this all resorts back to you doing what you have the most peace of mind with. Congrats on the duplex and getting started! You’ve already accomplished the hardest part!