Beach / Resort Rental Property - Any Thoughts?
I really want to invest in beach/resort rental property in the Myrtle Beach, SC area. It is about 120 miles from my house, although I eventually would like to move there. Is resort property a good idea? I have run the numbers on a few places and it sounds good, but as you know there are no guarantees with resort rentals. Of course I would have a local company manage them for me. Any ideas or input is greatly appreciated. My husband, and partner, thinks this is a terrible idea because we are not there.
I have family in Myrtle Beach, so I looked there as well.
I found a number of properties that had strong rental histories. It was seasonally biased, but still nice. Then I started to look into the management companies for these rentals and they were looking for 27-30%. Took me about 2 seconds to look at the numbers and say UM....No
Just always look at the numbers, they don't lie.
If you can make the numbers work with using a professional management company then I think it can be a good situation. I'm not too familiar with Myrtle Beach but that whole area will benefit with the building of I-77 (I believe that's the interstate #) that will run from Indy to Myrtle Beach. It will pass through Greensboro, NC.
Before taking the plunge talk to a variety of management companies and look at their rental occupancies. If you underestimate the percentage of rental weeks you'll be able to fill your place the cash flow goes down the tube and it become an expensive proposition.
Keep us posted....
Q