All Forum Posts by: Myrtle Mike Thompson

Nice work, Brandon!

@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 :)

Hey @Brad Currao, vacancy rates in the Myrtle Beach market are skewed by the massive amount of short and mid-term rental properties in the area.  My research shows some of the larger apartment complexes are at 10-12%.  Privately held properties such as single-family homes/condos have been running 7-10%.

@Sylvens Bellanton Welcome to the BiggerPockets community!  What markets in South Carolina are you interested in?  I can help with the greater Myrtle Beach area.

@Olecia Williams Though it's still possible to purchase a second/vacation home with only 10% down, it may not be your best option. Lenders assume more risk with a higher loan-to-value, so to compensate they'll charge more in points, loan level price adjustments, etc. The fees can be rather exorbitant. The last few STR deals I closed where my client used a second home loan, they ended up putting down 20-25%, preferring to have more equity in the property versus giving away thousands in fees to the lender. These were in the Myrtle Beach and North Myrtle Beach markets, but I believe this is a factor to consider in any market you're looking at.

Nice work!

@Tobias Joneses The answer to your question about making money on STR in Long Beach very well be "NO". Have you explored any other markets? Here in the Myrtle Beach area there are plenty of deals that will cash flow with a 25% down payment.

@Matt Schreiber I broker STR deals up and down the coast here in Myrtle Beach and North Myrtle. @Shannon Strickland offered some great advice.  Aligning yourself with a buyers agent who understands the STR market is absolutely critical.  There are a lot more condos for sale now compared to the past few years, but we still haven't reached pre-Covid inventory levels.  Listings also tend to tick up in the offseason as investor owners look to test the market.  If they can get what they want, they'll sell - often trading up for a larger property by way of 1031 exchange.  If not, many will withdraw their listings by spring, content to hold for another vacation season ($$$).  When it comes to the STR game, differentiation is critical, and that can be challenging with a 550 square foot oceanfront condo.  As others have alluded to, buying larger units or a house near the beach is a better play.  You'll have a bigger footprint to add cool design elements and offer more amenities to guests.  You don't have to spend a fortune and buy a house directly on the beach to do well, but your starting price point for a viable option in this market is around $350-$450k for a solid 2-3 bedroom oceanfront condo or around $500k for a 3-4 bedroom house within walking distance of the beach.  The bigger you go, the less competition you'll have and the greater your chance at some serious cash flow.  Consider partnering up with someone for your first deal.  And if you have any questions I can help with, feel free to reach out!

@Parth Hasmukhbhai Manek I just sent you a DM with referral.

@Parth Hasmukhbhai Manek I'm sending you a DM.