All Forum Posts by: Nancy DeSocio

Hey Greg,

Others with experience will chime in as well, but I'll add my view. We own one of these units in MB and use the onsite management company. The rotation you describe is accurate for our building. If you are looking for control of your property to maximize returns, you will need to manage it yourself and confirm with the existing HOA what you can and cannot do (and what services your guests can and cannot access if you manage it). Your strategy will depend on your goal. Our goal was to have a vacation home to use a few times per year and weren't looking for profit, so it has absolutely served its purpose for us. If you use onsite PM, don't plan on buying a yacht with your earnings :)

Hi @Brian Davis,

Howdy, neighbor!  We live in RI and are doing a bit of what you describe.  We have long term rentals here in RI/MA and short term rentals in Myrtle Beach and Gatlinburg.

It's awesome to have a place you can use whenever you want, but think about how you will get there.  A short drive to the Cape, New Hampshire, lakes region of NY, etc is easy.  Think about how far you are realistically willing to drive, flight availability out of your regional airport, etc.  We love our MB condo and don't regret anything about it, but flying down there a few times a year (with connecting flights and the unpredictability of air travel) isn't enjoyable.

As far as the Cape goes, they aren't building any more beaches last I checked, so I think those price points are here to stay and will only go up over time.  

Being a property owner anywhere is work (but this is a giant forum of people who love doing it, including myself), so you're on the right track in educating yourself and learning.  Good luck on your journey!

Hi @Mike Dawson,

We own a condo in MB as a vacation home.  I’m sitting on my balcony staring at the beautiful Atlantic as I write this :)

Agree with some of the others here but also want to add:

1. Some of the buildings DO allow you to self-manage.

2. This city thrives on tourism so STRs are usually welcome but there are areas that want to keep it to residents only. 

3. Find a realtor that REALLY knows this area. There are some on BP that will chime in here and they will help you with the items I mentioned. 

4. If you want a vacation home that mostly pays for itself, a condo in MB is great. If you start looking at other metrics (cash on cash, ROI, etc), you'll be looking a long time. A vacation home is emotional, an investment is not, and I understand the lines get blurred.

Good luck on your journey!

It really depends on your goals and what you want to get from the investment. I love MB, and we bought a beachfront condo there last year. If you want a second home that mostly pays for itself, it does serve that purpose.  If you are looking for cash flow, or cash on cash returns, you can run the numbers to see how it looks (those metrics don't meet my goals but not to say it won't work for you).

There are a few lenders that will lend on those condotels but even fewer that lend on studios. It can be done, and there many locals to the area that will chime in on this thread, as the building and HOA will factor into your decision.

Good luck on your journey!

Hey @Chris Noles, 

Congratulations!  We have a unit at the same resort and love it!  I can't comment on any returns at this point, as we haven't owned it a full year yet, but we have used it several times (just got back a few days ago from there) and love it!  Would love to connect and share experiences, as we're all learning from each other on this journey.  Best of luck to you!

HI @Terrell Owens, congrats on making the leap into real estate (yes, the mindset that you're going to do it is a leap!)

You have a few variables in your post, but with the current housing shortage, you can rent an apartment in less than great condition (not ideal, I know).  Another option is to stick to your plan but rent out the other unit "as is" knowing that you won't get the highest rent.  Unless it's filthy and unsafe, you can certainly find a good tenant.  While you won't be at market rent, it's income and you are on your way.  Then you can slowly fix up your unit while you live in it.  Once done, you'll have options as to how to move forward.  Just another strategy if you are looking for a fixer upper and minimizing vacancy.

That said, I agree with Anthony that the numbers still need to work for your scenario, but there are opportunities out there...so keep looking!

Hi @Marie Rufty

I recently purchased a similar property and will email you a few names.

Hi Ryan, we just closed in a condo in MB in August. I’ll direct message you the contacts I spoke to when researching. 

Hi @Todd Kime, we recently purchased a condotel in MB.  During my research and analysis, I haven't found one that cash flows if using on site property management (though it appears I should have reached out to @Myrtle Mike Thompson during my research!). That said, the cost of these units, as you noted, are affordable and surprisingly, prices have been going up even though we're going into the off season. A good realtor should be able to help you with identifying the buildings that are well managed, have a well-run HOA and strong rental income. And if it wasn't obvious, HOA fees are like taxes...they only go in one direction :) Also to note that there are only a handful of lenders in Myrtle Beach that lend on these types of units. Comparative to other investment properties, we're not expecting high returns from the condotel, but we really like having a vacation home when we want to use it!

Hi @Devin Ellinwood,

The market is absurd right now, but rather than the cash flow angle, another way to look at it is what your overall housing expense would be.  I don't know your current situation or your investing goals, but if you are currently paying rent then buying a multi family that breaks even or barely cash flows could still greatly reduce your housing costs.  As Anthony mentioned, it's all in the analysis, but owning an asset that other people are paying down could still make sense if you find a property that you want to live in.