All Forum Posts by: Ryan Bunting

Good Morning Bo,

Are you specifically looking for MTRs or also STRs and LTRs? 

Just last month I bought a property in Sea Pines that I will be utilizing for STRs for the summer months and MTRs to LTRs for the Fall/Winter months in Sea Pines.  

I worked in the rental side of this industry here on the island for over 5+ years before making the transition to Real Estate - so am happy to share any knowledge I can. 

Painting with a very broad brush (as going into every community and intricacy of Hilton Head on this platform would be too long of a message) a few suggestions would be as follows: 

MTRs - If this is your niche in real estate - you honestly may have more success in Bluffton for MTRs. Lower entry point for property values, and then if you can secure a location that is close to both Hilton Head & Savannah you can hit a larger demographic of renter and cater to both these working markets.

STRs - This would be Hilton Head. Specifically the 29928 area code. There are properties and communities here that do great as short-term rentals, but would not do as well as MTRs due to their square footage, price point, and "vacation standard." Painting with a broad brush once more - there are 700sqft villas on the island that are great for STRs that can go for $400k+ and generate a return - but for around the same price out in Bluffton you could get a home.

LTRs - This would be a mix on Hilton Head and Bluffton. If you found a community (Sea Pines, Forest Beach, Palmetto Dunes, etc.) that allows STRs but also has the demand for LTRs there in the "'off-season" this would be another direction that could work. 

It comes down to your specific venture and direction you wish to pursue in Real Estate down here, as each type of rental would have some overlap with each other, but there would be areas that would produce the best for each individual need. 

Hope that helps!

Sincerely,

Ryan Bunting

Good Morning Mike,

Did you see the RV lot in Motorcoach Resort that is now asking $305k? - Currently active on the market - Lot #70.

Regarding using them as a STR, you can utilize it to help cover expenses of ownership, but as you said your efforts may be better spent finding a STR villa or home. Of course this is also all dependent on how much money you would be putting down - if it was an all cash purchase it is redundant of me to say but it would cash flow - but with 20% down and 80% financed as an example - you would need high occupancy to cover your expenses. It becomes much more a "lifestyle" and "pride of ownership" buy at the above listing price for the right buyer where STRs are more of just a "perk" of their purchase.

Regarding the question of "why" they are similar to prices of a condo - a simple answer is supply and demand. Granted there are more factors at play but distilled down you can't increase the land supply on Hilton Head as we are an island, and the demand for location on the island remains extremely competitive. You are just as much buying the location and Hilton Head as you are the physical property whether it is RV lot, villa, or a home. 

There are strong investments close to this price line in the Hilton Head market with strong rental returns such as condos and villas where you can have higher rental rates. As an investor I would recommend taking a look into these if we are strictly speaking from a number perspective.

Hope that helps!

Sincerely,

Ryan Bunting

 Good Morning Emily,

I do not want to inundate you with too much information that it is overwhelming - but the Hilton Head Rental market is very intricate so I will try my best to give you an overview sense of it - as it comes down to many factors for each property. 

For example, if you are looking at a villa that has a 95% occupancy rate compared to a 16% occupancy rate for a "similar" villa both with square footage and location - first it would depend on which villa complex it was in. There are certainly "hot spots" on the island that have renters returning and demanding year after year. 

Then another factor would be dynamic pricing - if the rental company or self management owner has implemented a software to always be competitively priced in our market. I worked in the rental industry here for 5+ years - and have seen companies use base line seasonality rates for large blocks of time, companies use weekly rotating rates, and then I have seen software, ex: Beyond Pricing, that constantly pulls comparable properties and changes the base rate daily to always stay the most competitively priced. 

Another factor would be looking past the "base rate" number of the rental - and seeing what all the fees/add-ons provide. For example: say there were (2) villas next door to each other. Similar views, similar floor plans, same distance to the beach. The totality of the reservation comes out to -one charging $200 a night the other charging $220 a night - yet the $220 a night has a higher occupancy rate, why? It could be the rental company is adding in perks to the stay - such as rounds of golf, discounts at restaurants, free tickets to sunset boat cruises, the list can be whatever the rental company wants to add into their reservation. 

Then of course comes into play the reputation and level of service of the rental company. With a large and loyal clientele base a rental company will always have returning guests if they have provided an experience that satisfies consistently. 

Numbers are at the forefront of every investment - before anything else the numbers have to work, regarding listing price, gross rental return, expenses, and rental commission (unless you self manage). Yet, you also have to look past the numbers and understand the why behind each property that falls within your "investment box." 

For example that 16% occupancy may be a underperforming property due to some of the factors I described above. It has the potential - but is not being utilized correctly - which means it could have a lower listing price and ability to generate a higher return on your initial investment. I would be hesitant to speculate any further than that though - due to each property being unique and not knowing its exact history, location, and specifics. 

The simple just of it - I would recommend talking to experts in the market you are wishing to invest in, as they will give you a deeper look into both the numbers and all the factors behind the numbers. 

Sincerely,

Ryan Bunting 

Good Morning Troy,

Welcome to real estate investing! These are very broad questions, but I will try my best to answer them with information that you can utilize to refine your search going forward.

1) Turnkey properties for rental investments is all about "ease" of ownership. It comes down to finding one that works for you with the numbers, and here is where many factors come into play. First, it depends on how much cash you will be putting down on the deal, because this will effect your payments, and whether you can begin cash flowing instantly, or further down the line. Second, location, location, location. Check the Rental Projections & even better the Rental History for any specific units that interest you - make sure the demand is there. Third, with it being a turnkey property listing prices will tend to be higher than compared to a property that needs a little but of TLC, but there are deals in every market, it is just about finding the one that works best for your needs and numbers. 

2) A difficult question to answer as this comes down to your preferences, wants, and needs in a property. Find an area that works for you both for pride of ownership purposes and of course the numbers. 

3) Helpful Tip - There is so much information out there, just begin each day narrowing your focus a little more regarding each aspect of the investment. EX: how much you want to put down, max price line you want to spend, locations, timeframes, etc.. until you have a detailed guide/outline for moving forward. 

Hope that helps - and may you find the property that works the best for you!

Sincerely,

Ryan Bunting 

Good Morning Liam,

I worked in the rental industry here on Hilton Head for 5+ years before making the transition to Real Estate. 

Over the years I was seeing the growth and return from the rental side and decided to bring my expertise to the real estate part of the industry where I can assist in finding the best deals in the market for STR investors.

By this point - this post is a few years old - but fell under the "Hilton Head" tag on this platform and I saw no one had responded to you - so I just wanted to make sure you received a response from someone in the industry down here. 

Hopefully your needs have been met and your questions answered, but if you ever want to chat or discuss Hilton Head in more detail, I am always just a message away.

Sincerely,

Ryan Bunting

Hilton Head Properties 

Good Morning Kevin,

You have probably already completed your purchase on the island - here is a belated congratulations and welcome!

Regarding rental companies & specific numbers, as you probably know at this point, it completely comes down to the property, area, and company that you are using. Some rental companies on the island charge as high as 25% of the gross revenue on a property, and then there are many more that sit within the 10%-20% range. 

The reason for such this large span - is the personalized level of service. The companies that charge 10%-15% are large companies such as Vacasa or Evolve, that manage properties all across the country. 

You will see many local companies charge around 20% due to them having their main and only place of business being the island. Smaller companies with more of a personal touch. 

It really comes down to how you want to manage the property and what makes the most sense for you regarding the numbers and the partnership with a Property Manager. There is no "right" or "wrong" way to go about it, just the way that works the best for you. 

I was in the rental industry for 5+ years here before making the transition to Real Estate. Hope your investment has continued to satisfy your needs in a property, and if you ever just want to chat with another local, I am always a message away. 

Sincerely,

Ryan Bunting

Hilton Head Properties

Good Morning Shelia,

A fellow South Carolinian, hello from your slightly southern neighbor and welcome to real estate investing!  

What are you looking for in your STR strategy? Are you looking for a Buy & Hold, Fix & Flip, Appreciation Value Growth, Cash Flow?

If you begin filtering and structuring your search for a specific type of goal - it will greatly assist you on saving time and energy since there are so many avenues to go down in real estate. If you are undecided still, that is completely fine, just a suggestion that may help as you get more information and deeper into your search. 

There are many ways you can go about finding the right investment for you - it comes down to what your goals are in your investment journey. My family has been in Real Estate since the late 1970's on Hilton Head Island - and I would be happy to assist if you have any generic or specific questions. 

Sincerely,

Ryan Bunting

Hilton head Properties

Good Afternoon Will and Audrey, 

Congratulations on getting your start in real estate investing! 

The initial phase is always the hardest as there is so much information to digest and options in different markets and areas. It really comes down to your needs out of a property, both as an investor and for pride of ownership. 

First and foremost, the numbers have to work. To be a successful investor the numbers are at the forefront of every decision. Yet, since there are so many markets that can all return healthy investments, you also have to decide which area meets your own specific wants and desires as a property owner. 

I was born and raised on Hilton Head and have seen this market continue to rise, as it is fueled by STR investors and people that are choosing a "lifestyle buy."

I would recommend finding the place/places that have healthy returns coupled with pride of ownership and then working from there as you gather more information! 

Good luck along your journey!

Sincerely,

Ryan Bunting

Investment Info:

Townhouse buy & hold investment.

Purchase price: $575,000
Cash invested: $40,000

The "Top 4" Wealth Generators:

1. Appreciation Value Buy - (instantly valued higher than my purchase price) - VERY RARE FOR HILTON HEAD!
2. Cash Flow - Have the ability to cover my mortgage with extra cash in my pocket. One of the highest demand areas on HHI for renters both short & long term.
3. Tax Benefits - Can deduct most of my mortgage interest while building wealth.
4. Loan Paydown/Equity Growth - Grow equity for "free!"

I spent 5+ Years in Rental Management before Real Estate.

What made you interested in investing in this type of deal?

The value is continuing to increase on Hilton Head, but with buyers sitting more on the sidelines with interest rates, deals are being done in this market that can only be done right now. Negotiations are on the table, and even though a interest rate of 7%+ rate is hard to initially stomach it made sense. Buy now, instant appreciation with value continuing to rise, cover my expenses, and refinance down the line when the rates do drop, having already secured myself a valuable property!

How did you find this deal and how did you negotiate it?

I found it through MLS. It came active on a Thursday, and I was the first agent in the door to preview it. Knowing how quickly great deals are bought in this market, speed wins, and after a follow-up showing the next morning, I put in an offer on Friday. I knew other agents, customers and clients, would also see the potential in this deal, so I had to come in strong with a clean contract. Even at a full listing price it was still worth 50-75k more! Beat (3) other offers the same day.