All Forum Posts by: Michael Weigum

That's exactly what I did. I got a HELOC on my house in Denver and used that money to buy my first STR Beach front condo in Myrtle Beach, SC. It was a great way to go for us. Also, in this competitive market, having cash in hand helps close the deal. I always wanted a beach front condo, and now I have 2. Find the market you want to invest in, learn the in's and out's of the STR market, run the numbers, jump in and have fun!

Condotel’s are what we deal with every day in Myrtle Beach, SC and there are not many lenders that will finance them. However, I work with a couple that do a great job. I just closed on my second unit last Friday. I’d be happy to put you in contact with my lender.

@Wilson Vanhook

Myrtle Beach…14 million visitors each year! Ocean front condos still affordable with good ROI

@Lorenzo Prieto

Hey Lorenzo, we have similar stories. I lived in Denver for 24 years. 2 years ago I was learning everything I could from bigger pockets and trying to find my first deal but couldn’t make the numbers work. Since then the market has become even more crazy.

My family and I left Denver in 2020 and traveled finally settling in Myrtle Beach. I was looking for houses to flip and found out about the STR market here. I finally found an ocean front unit and bought it. It was an amazing experience. We had a phenomenal year with Airbnb and made a great return on our investment. So good that I am closing on my second unit this week and a am helping my mother in law close on her first investment here.

I always wanted a place in Summit County, but the entry price point just didn’t work for me. I traded the mountains for the beach and found lots of opportunity here.

I think STR's are a great first investment. You might have to look outside of Colorado to get the ball rolling.

Good luck!

Thanks for sharing! Myrtle Beach and the Grand Strand is definately in demand!

@Mark Fitzpatrick

Hey Mark, I live in Surfside Beach a couple blocks from Golf Colony. I actually drive through the neighborhood every day.

When I first moved here I was going to buy a unit in there for a flip. I got an ocean front condo instead. I think you could do a STR and do very well. It's only 1.5 miles to the beach. I also think you could raise the rent.

One strategy I’m looking at is buying 2 bedroom condos and renting them for 6 month terms. The biggest problem we have right now in Myrtle Beach/Surfside Beach is lack of inventory. People are buying new construction homes, but have to wait 6-9 months for completion. They are looking for places that do 6-9 month leases and they are willing to pay too dollar. Before we got our house in Surfside, we had to compete with 20 other people trying to get a rental. It was crazy. Thankfully we got a house in an off market deal.

STR and or a 6 month lease at solid bets right now in our neighborhood.

Feel free to reach out, I’m happy to help!

Awesome job! I hope I can find a flip like that that I can "accidentally" fall into this year! Well done.

Myrtle Beach, SC is a great place for STR and AirBnb. It's worked well for me. I'm planning on adding more to my portfolio this year.

Hello Charles,

I personally love STR as a strategy. I'm all about Cash Flow right now. I can share my personal experience and hopefully it can help a bit with your decision making process.

I bought my first Ocean front unit in March 2021. 1 bed 1 bath Ocean front condo in Myrtle Beach, SC. I purchased it with cash for $90,000. I rented it out on AirBNB starting in March. I lived in it in April and part of June so I only had about 8 months of rental income. My gross rental income was $36,000 plus $6,700 in cleaning fees. I self managed it. My HOA was $7,060 for the year. My main goal was Cash Flow and I'm really pleased with how it turned out.

A couple things I've learned over the last year.

1. 1 bedroom 1 bath units are the "sweet spot" for best cash flow ROI. You should be able to do 30-35k GRI. That was my target and I exceeded it.

2. Most resorts charge a 40% management fee. Obviously don't want to go that route. You can get property management for 20% 

3. Finding good dependable cleaners was my main challenge. I paid between $50 and $75 per turn for my cleaning people

4. My HOA fee included my insurance. It also included everything else (electric, cable, water, trash, etc) so I just have that one payment each month.

Overall, the experience has been great and I'm getting ready to close on my second unit this week. Knowing the market or working with someone who does is key. Which buildings are having assessments coming up. Which buildings require that you use the onsite manager for the first couple years. Timing is important, we have a peak season in the summer and a slow season in the winter. Most of the money is made between March and October. You can get property management for 20%. And as Myrtle Mike Thompson mentioned, financing on "Condotels" can be tricky, so knowing the right lenders is key.

Hopefully that helps, I'm happy to answer any other questions you might have. Here's to a prosperous 2022!

I just found this thread. Looks like I missed the meetups for this month. Will put on the calender for next month. Would love to meet up with you guys!