Your beach home
on the Grand Strand.

Second home loans typically require a 10% minimum down payment compared to 3 to 5% for primary residences. Interest rates are usually 0.25 to 0.75% higher. The property must be a single-unit dwelling that you intend to occupy for some portion of the year. If the property generates rental income, lenders may classify it as an investment property, which carries stricter requirements.

In most cases yes, but this depends on the loan type, the property location, and local zoning. If you financed it as a second home and rent it out extensively, your lender may require a reclassification to investment property. In Myrtle Beach city limits, short-term rentals under 90 days are banned in most residential zones. North Myrtle Beach, Surfside Beach, and Horry County unincorporated areas are more permissive. Verify STR eligibility on any property you intend to rent before purchasing.

Cherry Grove in North Myrtle Beach offers channel homes and oceanfront properties with more permissive STR rules. Pawleys Island is the choice for buyers who want a quieter, historic barrier island with no high-rises. Surfside Beach has a genuine family beach feel with golf cart access. Garden City has Pier District oceanfront access with a lower price point than Cherry Grove. The choice depends on whether lifestyle or income potential is your priority.

Non-primary residences and second homes are assessed at 6% of appraised value in South Carolina, compared to 4% for legal primary residences. Horry County's millage rate of approximately 0.1918 applies to the assessed value. On a $400,000 second home, the annual tax would be approximately $4,587. You cannot claim the 4% owner-occupied rate on a second home.

Oceanfront condo buildings on the Grand Strand require ongoing capital investment to maintain in a saltwater environment. Buildings with underfunded reserves levy special assessments when major repairs arise. On a second home you may not be monitoring the HOA as closely as a primary residence, making a surprise $15,000 assessment particularly painful. Request the reserve study and funding percentage before contracting.

Many buyers purchase a beach property assuming they can generate rental income when they are not using it, without verifying the STR legal status. In Myrtle Beach city limits this assumption is almost always wrong. Always verify the specific address before purchasing if rental income is part of your financial plan.

Second home buyers often budget for the mortgage payment and overlook the full cost of ownership: three separate insurance policies, HOA fees, property management if you rent it out, maintenance in a coastal environment, and the 6% property tax assessment rate. Run the complete cost model before you commit.

For condo buildings with established STR programs, the building's rental management history matters enormously. Some buildings have 10-year track records of strong occupancy; others have ownership turnover and management changes that have affected revenue. Ask your agent to pull building-level AirROI data before you make an offer on any STR-eligible condo.