Condo investing
Are Myrtle Beach condos
a good investment?
By Devin Day, Operations Officer & licensed MLO · Reviewed by Timmy Fredrick Nash, Broker-in-Charge
The honest answer: the building decides. Here is how to pick the right one.
The direct answer
Are Myrtle Beach condos a good investment?
They can be excellent and they can be money pits, and the difference is almost never the unit itself. Three things decide the outcome: the building you buy into, the loan you can get on it, and who manages the rentals. Get those three right and a Myrtle Beach condo can outperform most coastal rental markets on price alone. Oceanfront units here still start under $200,000.
This page covers the three deciders in plain language, plus the fees and taxes that surprise first-time condo investors.
Decider one
The building matters more than the unit
Two identical units a block apart can earn very different money because the buildings differ: rental history, HOA dues, the master insurance policy, reserve savings, and upcoming special assessments. The right building can produce far more revenue than a nearly identical unit in the wrong one.
Before any offer, we read the building's bylaws, budget, and reserve study, and we ask for its rental history. A pretty unit in a struggling building is still a bad investment.
Decider two
Condotel financing limits your lender list
Many oceanfront buildings are classified as condotels: buildings that operate like hotels, with front desks and nightly rental programs. Normal conventional loans often do not work in them, which means larger down payments and fewer willing lenders.
This is where buyers lose deals, so line up financing before you shop. Our in-house lender, BrickWood Mortgage, works these buildings regularly and can tell you which ones close cleanly before you spend on an inspection. DSCR loans, which qualify on the unit's rent instead of your tax returns, are a common fit.
Decider three
Do not default to the on-site property manager
Here is the pattern we see most often, and almost nobody warns buyers about it: many of the best-performing condo buildings have the most aggressive and expensive on-site management companies. The building earns well, the on-site manager points to that success, and owners sign up without shopping around.
Most owners would do better comparing prices and results with other local property managers before signing with the on-site company. In most buildings you are not required to use the on-site manager, though some master deeds add rules, so we confirm that document before you buy. The difference between management contracts is often the difference between a condo that pays you and one that mostly pays its manager.
The costs
The fees and taxes, all of them
Budget every line below before you offer. Our analyzer builds them into the projection automatically when you run an address.
- ✓HOA dues. Usually include the master insurance policy and some utilities. Verify exactly what is inside the number.
- ✓An HO-6 policy. Your own insurance for the interior of the unit, on top of the building's master policy.
- ✓Special assessments. Older oceanfront buildings levy them for big repairs. The reserve study tells you the risk.
- ✓Property tax at 6 percent. Investment property is assessed at South Carolina's 6 percent ratio, roughly double the owner-occupant rate.
- ✓Rental taxes and licenses. Short-term rentals collect accommodations and hospitality taxes and need a business license.
- ✓Management and cleaning. The management split and turnover cleaning are usually the biggest line after the mortgage.
Buying a condo here? Talk to us first.
We read the building documents, pull the rental history, and check the financing before you commit to anything.
Common questions
Frequently asked questions
Are Myrtle Beach condos a good investment?
They can be. Prices start lower than almost any coastal market and vacation demand is deep, with roughly 19 million visitors a year. The outcome depends on the building's finances and rental history, the loan you can get on it, and the management deal. Judge those three, not the countertops.
Do I have to use my condo building's on-site property manager?
Usually no, but some buildings write requirements or restrictions into the master deed, so check it before you buy. Many of the strongest buildings have the most expensive on-site managers, and owners often earn more after comparing prices and results with other local property management companies.
Why is condo financing different in Myrtle Beach?
Many oceanfront buildings are condotels, which most conventional lenders will not finance. Those buildings need specialty loans, larger down payments, or DSCR loans that qualify on the rent. Confirm the building's status with a lender before you make an offer.
What monthly fees do Myrtle Beach condo owners pay?
HOA dues that usually include the master insurance policy, an HO-6 policy for your unit's interior, utilities the HOA does not cover, and, for rentals, management and cleaning fees plus accommodations taxes. Older oceanfront buildings can also charge special assessments for big repairs, which is why we read the reserve study first.