It may come as no surprise that we get a lot of questions here at Jerry Pinkas Realty surrounding condos and investments, as there are a lot of buyers that are interested in breaking into the investment property market here in sunny Myrtle Beach, SC. The question we get asked quite frequently is ‘If I’m buying a condo on the beach, is it better to buy a one bedroom, two bedroom, or three bedroom in Myrtle Beach?’ We have clients that want direction on which one will be the best investment and which one will give them the most return. And while it’s a tricky question, as there are a lot of factors that play into the decision, we are here to answer it in today’s blog post and hopefully will provide you with some helpful insight as you start your search.
Should I only look at condos that appeal to my personal taste?
While you may expect us to say yes to these criteria, the answer is actually no.
A lot of time people want a 2 or 3 bedroom condo on the beach because it may fit their specific needs and maybe the way they would like to live themselves. Many times we see people that are drawn to purchasing a condo based on what they personally like and not thinking too much about the rental potential, which is actually backward! Buyers should be thinking about what gives them the best return on their investment, not checking off the criteria of what they personally like upfront. Because when you break it down, you’re going to be spending very little time in the unit anyway. You always want to look for a place that is going to give you the maximum amount of dollars back in your pocket.
What factors should I consider when starting my search for an investment condo in Myrtle Beach, SC?
There are a few factors that we want you to keep in mind when starting your search for a condo in Myrtle Beach, SC that will aid in the unit ending up to be a good investment. A few of these factors include the purchase price of the unit, the potential HOA fees, the prime rental season and the total expenses of the unit. When it comes to HOA fees(Homeowners Association fees), it is important to not shy away from the unit because of these fees and to fully understand what is included in the cost each month. As we have discussed in a previous post, HOA fees have the potential to cover things such as insurance, cable, internet, maintenance and upkeep of common areas. Especially if you are using the unit as a rental, having all these items (and more) covered for one fee each month can help ensure that the unit and building are being kept up and allows you one less thing to worry about when it comes to rent each month.
It is also important to keep in mind that not every complex or area of the beach will give the same return. Just because the building may be overlooking the glistening waters of beautiful Myrtle Beach, it does not guarantee that all the units in the building are equal. You can have a unit that is in a prime location but can be extremely outdated which will make it difficult for you to find interested renters. By the time you put in the necessary funding behind getting the condo updated, you may be in over your head with the investment and end up losing money on the unit. Once you have had the unit rented for some time, it is also important to consider your rental history year over year and adjust accordingly if you are not satisfied with the outcome of the income you are bringing in.
So when prioritizing what you should be looking at in a unit that will give you the best return on your investment, it is the one that has the potential to give you the highest rental price. The next thing you should be looking at is what the homeowner’s association includes, and then, finally, if you personally like it yourself. If the steps are followed in this order, we are confident that you will find a good investment condo in Myrtle Beach, SC. Sometimes you will find that the one bedroom, when you put pencil to a paper, will come out to be the better investment, and other times it’s the two or three bedroom. And what exactly is the best way to figure out what is the best situation for you? Well, that is where we come in to help you!
What season will I most likely see the most rental income from my condo?
This is a great question, and one we see frequently, as not all seasons in Myrtle Beach, SC are created equal when it comes to rental income. So here’s the deal: as we all know, there are only 52 weeks in a year and, therefore, you are limited to on how much rental income you can acquire during one calendar year. And if you have ever visited Myrtle Beach, SC in the summer, you are sure to understand the draw to the area during that time. The beaches are buzzing with locals and vacationers alike eager to soak up the warm South Carolina rays, the boardwalk is alive and action-packed, and the delicious restaurants and overflowing with hungry patrons.
Summer is definitely the high season when it comes to rental income flowing into the bank, which is good because you may find yourself tapping into that bank in the winter to pay for the condo. Now don’t get us wrong, there is still plenty to do in Myrtle Beach, SC in the winter and the area does draw in renters. But if you are trying to plan on which season will allow you to charge the most and will bring you the most income, summer is your main goal.
And on a side note, if you are looking for tenants for a year-long lease, we would recommend you start the lease in the summertime. One reason this could work to your benefit is that the number of available units will most likely go down during that time due to an influx of visitors to the area, therefore creating higher demand. You are then able to turn around and charge a little more per month which will guarantee you that income each month for the entire year. On the flip side, if after the year lease is up your renter decides to not renew the lease, you will find yourself smack dab in the middle of the busy season again allowing the demand of condos to fuel your search for a new renter. It ends up being a bit of a win-win in our opinion!
What should I do if I am interested in learning more or purchasing a condo in Myrtle Beach, SC?
We know you have questions about purchasing a condo in Myrtle Beach, SC, and we have the answers! Everything from price, location and layout can be topics of concern and uneasiness for potential buyers. We have helped numerous individuals, couples and families find the perfect condo and we can do the same for you. Allow our team of experts to understand your situation, go over your options and settle on what will be the best condo for your specific criteria. Why have average when you can work with experts? Give us a call today!
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