Another week, another great blog topic coming your way! A question we get asked a lot here at Jerry Pinkas Realty is: are condo owners making enough money from their investment to pay for their investment when they buy a condo in Myrtle Beach, SC? And while that is a bit of a tricky question, we are going to do our best to answer it for you today. Our answer to the question can be ‘yes’ AND ‘no,’ as it really depends on a few main factors that we are going to be touching on later in the post. It also benefits you to work with a team that can help direct you to a potentially good investment, as well as steer you away from a potential money pit.
Factors such as where you buy (more specifically, which town), the location of the property to the beach, the area of the beach itself and also the property itself can help decide if the property can pay for itself over time through rental income. Other items such as what amenities the renters have access to and also figuring out if people come back year after year, or do they just come one time and leave and go look for their next place next year can play a large role. And while there is no guarantee that a condo or vacation home will be able to pay for itself strictly through rental income, these are all great things to take into consideration that will help your chances of the property being a win for you and your family.
We hope this blog brings you a little clarity on the topic and aids you in making the right decision when it comes to the most bang for your rental buck!
How do I know if the condo or vacation house in Myrtle Beach, SC is a good investment?
There are various factors to take into consideration when figuring out if the condo or vacation home is a good investment. As we touched on above, things such as location, what section of the beach the property is located on and the actual condo development are important factors to look at. Also, you will want to look into how much money historically the property has brought in year-over-year and see if there is a trend. Do people come back and rebook their vacation years in advance? If so, these are the best places to take a serious look at and will more than likely not only pay for themselves, but potentially bring you a profit. If people tend to only rent once then move on to another rental, you may want to rethink if the property is a good investment for you.
What should I look for when purchasing a condo or vacation house in Myrtle Beach, SC to give me the most rental income each month?
There are a few things to look for in a potential condo or vacation house in Myrtle Beach, SC that is likely to bring you the most rental income each month. Now, you may be asking yourself how can you possibly distinguish which properties are going to bring you the most money on a monthly basis. And while there are no guarantees on what property will bring you what income, there are a few areas to keep a close eye on that will be helpful deciding factors in this decision.
The first topic we want to touch on are the amenities that the condo or vacation house offers, as they have the potential to carry some significance when it comes to the rental price you set. We definitely recommend looking at properties that have the most amenities as those properties typically bring in above average rental income. Areas such as gyms, community pools, tennis courts, parks, and clubhouses are always a large selling point when it comes to renters being interested in your property. You are also able to justify a higher rental price due to the added features of the property and the range of activities that are closely available to the renters.
But there is a lot more to look at than just amenities. Things such as location and the property itself can be large contributing factors as well. Is the property near a Starbucks and other local restaurants, entertainment and attractions? If so, the part of town is probably very appealing to renters as they do not have to travel far to meet their needs and wants. Think how much of a selling point it is to be able to wake up and walk (or only have a short drive) to a popular breakfast spot or even the Myrtle Beach Boardwalk, which is a very popular and beloved destination for visitor’s year round. You want to look at what the property is close to, and also what it is not close to, as that can have an impact on not only the desirability of the unit, but also how much you can justifiably charge each month.
What should I avoid when purchasing a condo or vacation house in Myrtle Beach, SC?
One thing that most people THINK they should stay away from when looking at potential condos and rental homes in the Myrtle Beach, SC area is an HOA (Homeowners Association) fee. And while you always need to do research and be well versed in what exactly the fee covers, most HOA fees are actually helpful especially if you are going to be renting the property out. The HOA fee has the potential to cover things such as insurance on the building, internet, cable and maintenance. Specifically, if the unit will be used for rental purposes, and seeing as how you will not spend too much time there, it will be comforting to have the peace of mind that the building is being well maintained in your absence
With that said, you want to make sure that the building management is using the money towards things that are going to improve the building and are staying on top of things. You want to be sure to avoid any management that is lackadaisical and has a bad reputation. You also want to make sure that you are not only looking at properties that appeal to your personal taste, as you won’t be spending much time in the unit if it is consistency being rented, but instead look at other features that will bring in ideal rental income. We are not saying that it is not important that you like the property, but it it important to keep in mind that you will not be living there and you will not have to spending your every day in the unit/home. You should focus more on aspects that will be appealing to renters to ensure the property has money coming in month after month.
What should I do if I am interested in purchasing a condo or vacation house in Myrtle Beach, SC?
We know the process of purchasing a condo or vacation house in the Myrtle Beach, SC area can seem a little daunting and overwhelming for some people. What neighborhood to look for that fits your budget, but is also close to the beach and entertainment, is something that may be a little out of your wheelhouse, especially if you are not familiar with the area. Luckily, that is where we come in. Let our experienced team here at Jerry Pinkas Realty have the opportunity to listen to your needs and wants in a property and help you find the perfect condo or vacation home today. This is something our team deals with every day, and we know which features have the highest potential to give you the best return on your money, as well as which areas to stay away from. We know you have questions and we are here to help. This is what we do day in and day out, and we are extremely good at it – give us a call today!
You have questions, we have answers. Give us a call at 843-839-9870
Subscribe to our YouTube Channel for great new properties to the market and tips for buying your Myrtle Beach Condo!
Why pick average, when you can have an expert?
Give us a call 843-839-9870