You may have noticed by now that there are a number of condos in Myrtle Beach for under 50k. Some of them may look like they are in hotels. Is this a good or bad thing?
Well as we all know, the old saying of “you get what you pay for” holds true, especially in Myrtle Beach. Also remember the old real estate saying “Location, location, location!” The area that a Myrtle Beach condo is located can affect the price. Also, there are a lot of resorts in Myrtle Beach that are outdated and look like they’re stuck in the ’80s. Maybe that’s your thing. But if not, then it can be a problem. If you compare one of these condos to something in the Royal Palms, for example, those go for around 300k. Those buildings are obviously in better condition and maintained. You will probably need to pay at least 100-125k for a well-maintained condo.
Also keep in mind the HOA fees, especially in Myrtle Beach oceanfront condos. Some of the cheap condos still have high fees.
Before you buy a condo check the occupancy rates of the building along with the expected rental income. People are going to be less likely to rent a cheaper unit that’s not right on the beach. Think of it from the renter’s perspective. Sure there may be those who want to visit Myrtle Beach on a budget. But will the lower rent you have to charge to attract those people to make it worth your while.
Also, be sure that the condo is not a co-ownership that’s owned by 10 or more people as part of a time-share. Others may look like hotels because they actually were a hotel at one time but then converted to condos.
Tripadvisor.com is a great place to give you an idea of the ranking for a resort in question.
The bottom line is that a cheap condo may seem like a great bargain. But the price isn’t the only thing to consider. Make sure you count the other costs involved and your ROI. In the end, it’s about making money on the rental, unless you plan on living in it yourself.