Why to Buy a Short Term Rental in Myrtle Beach

Avery Carl [00:00:03]:
Hey guys, it’s your host, Avery Carle.

Avery Carl [00:00:05]:
Welcome to the short term show special.

Avery Carl [00:00:06]:
Episode series on Myrtle Beach, South Carolina. I’m super excited to do this 10 episode deep dive into this market with you and I wanted to make a few notes for you first. So if you want to set up a search for properties or see current purchase prices or current income numbers in this market, you can do that at our website, the shorttermshop.com.

Avery Carl [00:00:25]:
If you just want to connect with.

Avery Carl [00:00:26]:
Us and hang out and talk about short term rentals more, you could do.

Avery Carl [00:00:29]:
That in our Facebook group.

Avery Carl [00:00:30]:
It’s the same title as my book, it’s called Short term rental Long term Wealth. And you can also find the information on all of our other market short term show special episode series there as well. So we look really forward to hanging out with you over the next 10 episodes and we’ll catch you guys on the next one.

Avery Carl [00:00:46]:
Let’s go.

Bradley Klein [00:00:51]:
Foreign.

Avery Carl [00:00:56]:
Hey guys, welcome to episode one of the short term show special episode series on Myrtle Beach, South Carolina. So I really love this market because it’s got all of the qualifications that I look for in a market to invest in short term rentals. And we’re going to talk about all those in a minute. And it’s very, very affordable. I would venture to say it’s some of the most affordable, beautiful beachfront prices that you can find in an area that actually gets tourism. You could probably find cheaper and maybe in a place that nobody goes, but that would defeat the purpose of having a short term rental. So got one of our amazing agents in the Myrtle beach market here to help me talk about that. Bradley, will you introduce yourself to the world for episode one?

Bradley Klein [00:01:42]:
Absolutely. I’m Bradley Klein. I’ve worked with the short term shop pretty much since they started, which I think was last year. August, right? Avery.

Avery Carl [00:01:52]:
I can’t remember exactly when it’s been. I think yeah, about a year and.

Bradley Klein [00:01:54]:
A half right around late last summer. But I started with the short term shop right after our first agent, Samantha started and lived in Myrtle beach for the last seven to eight years. Now prior to that, I came from sunny old England, born and raised there and moved to America and spend my life here now.

Avery Carl [00:02:15]:
All right, well, welcome. So let’s talk about why, why would somebody want to invest in Myrtle Beach? What, what do people come to do there?

Bradley Klein [00:02:27]:
Well, I think first of all, I mean it would be safe to say is the weather. I mean, of course in the summer it’s gets up into the 90 degrees, but it doesn’t get scorching hot to where it’s unbearable. And then in the off season, we still kind of have seasons, but it doesn’t get so cold that again, it’s unbearable. I mean, I think average temperatures in the off season, kind of January, February, March, ish, around average 60 degrees. So first of all, we had the weather. Secondly is probably location. I mean, we’re obviously not central, but we’re still close enough to a lot of states to where it’s super easily accessible to where you don’t have to go that additional 10 hours down to the kind of Miami area or the west coast of Florida, yet you still get to appreciate those temperatures. And of course, if you do come from the upper states, you can still get back to.

Bradley Klein [00:03:20]:
If that happens to be where home is, you can still get home pretty quick within a day with a car or accessibility. The airport is literally downtown. I mean, you actually fly directly over the beach when you land into Myrtle beach, which is kind of cool. So. And then of course, it’s huge for golfing here. Golf. I think we have over 100 golf courses along, along Myrtle Beach. We have 60 miles of beach that kind of stretch from Pauley’s island all the way to Little river, which is on the north end of Myrtle Beach.

Bradley Klein [00:03:52]:
And then of course, it’s predominantly a tourist town. So we have a lot of family activities areas like little boardwalks, amusements, tons of restaurants, bars, and then just little kind of quirky southern charm areas scattered around in places, of course, with your live oaks and moss hanging from the trees and that kind of movie scene type environment, if you will.

Avery Carl [00:04:20]:
Yeah, I do love, I do love Spanish moss.

Bradley Klein [00:04:23]:
It does have something to. It reminds me of the, the chick flicks.

Avery Carl [00:04:27]:
Yeah. All right, so yeah, let’s, let’s talk about the tourism. So is there much industry in Myrtle beach outside of tourism or is everything pretty tourism based?

Bradley Klein [00:04:40]:
It’s predominantly tour based. I mean, in, in recent years it has in certain pockets become more of a retirement area. Again, I think that’s just because of location. But outside of that, it is predominantly tourism. We don’t really have any other industry here. We have a little bit of medical, but. But for the most part it’s tourism.

Avery Carl [00:05:00]:
And that’s kind of what I expected you to say. So. And I would imagine there’s not a whole lot of hotel presence either. It’s mostly condo buildings, correct?

Bradley Klein [00:05:08]:
Yeah, I mean, of that 60 miles, probably 45 to 50 miles of it is just condo buildings.

Avery Carl [00:05:15]:
See that? Those are two sentences right? In a row that to me, that gets me excited about investing in a market I like for vacation rentals. So I don’t do metro short term rentals. That’s too volatile for me. They people, they change the rules all the time because there’s so many people that live there. There’s hotel presence. I like a vacation market that’s dependent on tourism and where there’s not a lot of hotels. So because there’s not a lot of hotels and it’s dependent on tourism, the entire city, county area runs off of the tourists coming to stay in the short term rentals. So in a way, because there’s not a lot of places to stay other than the short term rentals, the, the area, the municipality is kind of dependent on the short term rentals themselves.

Avery Carl [00:06:04]:
So that’s really what I like to see when I’m looking to invest in a short term rental market because that tells me that it’s unlikely the regulations are ever going to become anti short term rental. Of course nobody can predict the future, but it’s really, really unlikely that that would ever happen. How long has Myrtle beach been a tourist destination? Did it start as like some other type of industry, like maybe a fishing industry and then tourists came in or has it really always just been a vacation town?

Bradley Klein [00:06:35]:
So to my record, it’s as far as it’s been around. I mean prior to it being Myrtle beach it was just swamp area. But as far as I’m aware, it was predominantly always a vacation town, which.

Avery Carl [00:06:48]:
I love that too.

Bradley Klein [00:06:49]:
Kind of goes to what you say for the likelihood of it changing or limits in regulations for for rentals would just be, it would be like shooting itself in the back.

Avery Carl [00:06:59]:
Yeah, yeah. And I, I hear so many people, when they hear when now, when, when big vacation towns are talked about in the short term rental space, people are like oh saturated, blah, blah. But when you look at these towns, it’s not like it was all primary homes being sold up until 10 years ago and then everything’s converted to a short term rental and we have this flood of supply onto the market and now it’s saturated. 98% of all the real estate ever bought and sold in this market. Since before Airbnb, since probably before the Internet has been vacation rentals and second homes, right?

Bradley Klein [00:07:34]:
Yes.

Avery Carl [00:07:34]:
Yeah. So it’s not like once you get.

Bradley Klein [00:07:37]:
Away from the beach, of course there are a lot more HOA neighborhoods, but as you, once you along that stretch of beach, it is predominantly just second homes and vacation rentals for sure.

Avery Carl [00:07:49]:
And you would want to, you Wouldn’t want to invest away from the beach.

Bradley Klein [00:07:52]:
Either, because it wouldn’t make sense.

Avery Carl [00:07:54]:
Yeah, yeah, you want to invest on the beach. So this has all the makings of a great place to invest in, in my opinion. So let’s talk about the attractions of the market. So obviously, the beach you want. Like we just said, you want to buy on the beach. What else is there to do around here?

Bradley Klein [00:08:13]:
As I mentioned before, I mean, it’s. It’s a huge golf town, golf city. I mean, there’s over 100 golf courses. So we get a lot of golfers in the area as well as kind of your families there are. We. We don’t just cater to kind of adults. We. We have a lot of amusements.

Bradley Klein [00:08:32]:
In the downtown area, we have the Sky Wheel. We have Broadway at the beach, which is kind of like a. A boardwalk with a bunch of kind of ripples. Aquarium, Wonderworks, that kind of thing. We have the Wax Museum. We have. We have. In the North Myrtle beach area, we have Barefoot Landing, which, again, it’s on the Intercoastal Waterway, but it’s a bunch of restaurants, breweries, arcades.

Bradley Klein [00:08:58]:
On the south end, we have Murrell’s Inlet, which is. It’s on the. The inlet. A bunch of really good seafood restaurants. The famous Go island, which is essentially an island in the. In the middle of the marsh, where a bunch of goats just live out there randomly, which is really. It’s. It is.

Bradley Klein [00:09:16]:
It’s. It’s a. It’s a. An attraction in itself.

Avery Carl [00:09:20]:
So you just go out there and do what? Like, does someone own this or the goats? Just, like wild goats.

Bradley Klein [00:09:26]:
As far as who owns it, I have no idea, but it’s just been something that they were used, I think, to maintain the vegetation on the island, and then it just became like a quirky attraction.

Avery Carl [00:09:37]:
Okay, so is it like you have to pay to go out there?

Bradley Klein [00:09:40]:
No, you can’t go out there. You just see it from, like, the. The boardwalk area where the restaurants are. They’re just kind of like hanging out on the inlet, just doing the thing.

Avery Carl [00:09:50]:
How big is it? That seems kind of like a sad life for a Go.

Bradley Klein [00:09:52]:
I mean, it’s not a huge area. I mean, it’s maybe. Maybe an acre or something. It’s. It’s not a huge space, but I think because of recent. Just because of the weather in that area lately, they. They had a little bit of. I think a lot more of that land kind of went underwater, so they.

Bradley Klein [00:10:11]:
They’re slowly going away with the goats. But beyond that we have fishing. We have sunset cruises. I mean, there’s just a whole bunch of an endless list of things to do for all age types.

Avery Carl [00:10:23]:
I mean, Goat Island. I. I never. That’s. I. I would totally go see that.

Bradley Klein [00:10:28]:
All the things Goat island is, what is what’s sticking out.

Avery Carl [00:10:32]:
Okay. Okay. So what else about Murrell’s Inlet? I. I stopped you on the Goat island because it was fascinating. Anything else there?

Bradley Klein [00:10:39]:
Yeah. I mean, as I say, we have. You have fishing, you have sunset cruises, Jet skis, pontoons that you can rent. You can rent boats on the waterway. If you want something a little bit more backcountry, you want to go see the alligators and that kind of thing, you can. You can go that route. So, I mean, you’re not just limited to the beach, because Myrtle beach is pretty much such a long stretch. You’re never too far away from the inland, really.

Bradley Klein [00:11:06]:
So if you did kind of want to just get away from the beach for a couple of days and see some other things, you have those options, too.

Avery Carl [00:11:13]:
Okay, cool. Alligators. Is there anywhere you can eat alligator in?

Bradley Klein [00:11:18]:
You can. There’s a few restaurants in Paula’s island, which is on the south end of Avari county, which is. Which is the county that Myrtle beach is based in, which is. I think it’s right around 1250 square miles. So it’s. It’s a pretty big county. But Paulie’s island sits on the. The south end.

Bradley Klein [00:11:38]:
And you can eat alligator down there.

Avery Carl [00:11:40]:
Yeah. Not something I want to do. But I have noticed in beach markets, especially in the South. Well, not in South Florida, but in the panhandle over here and, like, all the, quote, southern town beaches, there’s. There’s alligator on the menu places.

Bradley Klein [00:11:53]:
It’s not that bad, honestly. I had to try it just to have tried it. It’s not that bad.

Avery Carl [00:11:58]:
Yeah, I’ve tried it one time before just to say that I did. It’s not something I’m gonna like because it’s delicious, but it exists. You get it here at Fudfuckers. I think it’s weird anyway. Weird, weird stuff. Okay. So we talked about tourism. Lots of stuff for kids to do.

Avery Carl [00:12:16]:
It sounds like. Seems like a lot of the markets. And I know this is a weird thing to say. A lot of the markets that I end up really finding to be good markets to invest in have all the exact same attractions outside, outside of whatever their natural resources. So, like, the Smokies has the mountains down here in Destin, we’ve obviously got the beach too. But we all have like the Ripley’s thing or the track or a wax museum, all that stuff.

Bradley Klein [00:12:42]:
Yeah, I think because as I’m starting to find out now, your life quickly becomes the kind of revolves around keeping the kids happy, so.

Avery Carl [00:12:51]:
Oh yeah, yeah, yeah. Oh, you’ve got some fun, fun years coming up. Ours are just now old enough to be able to go like do cool things and it’s awesome when they’re having a good time.

Bradley Klein [00:13:03]:
Which is kind of cool.

Avery Carl [00:13:04]:
Yeah, yeah. We took our kids to kiss last night. So audience Bradley has a brand new baby, his first one. So we’re very excited for him and he’s got some fun times. You got some not fun times first but then getting better. Yeah. Getting some sleep now. Yeah.

Avery Carl [00:13:19]:
So lots of kid activities. Sounds like.

Bradley Klein [00:13:21]:
Yes.

Avery Carl [00:13:22]:
So it’s a very family friendly area.

Bradley Klein [00:13:24]:
It is. And it’s obviously, I mean being a beach town we are seasonable, but our season is getting longer. And of course the golfers gen to be tend to be groups of 10 to 15 guys that come. So they generally tend to come once the season finishes. So October, November is still pretty good months because it’s still nice weather here. It’s not so hot. So that’s when all the groups of guys come out and start hitting the, hitting the golf courses.

Avery Carl [00:13:54]:
Okay, good to know. So you can kind of extend your season a little bit with the golf golfers, whereas other areas that don’t have that much golf, maybe not so much.

Bradley Klein [00:14:02]:
Correct.

Avery Carl [00:14:03]:
Okay. Do you guys see much snowbird action or.

Bradley Klein [00:14:07]:
We get a little bit of action. I wouldn’t say it’s as big as Florida for example, but it’s definitely, we do definitely get some snow bird action which is nice because of course in the off season it allows you to, to kind of use your unit to if, if you’re not able to get those weekly rentals still, you’ve still got the option of snowbirds to keep your, keep your unit occupied during the off season.

Avery Carl [00:14:30]:
Yeah. And that’s something that I do want to talk about a little bit is the seasonality of coastal markets. So guys, if you’re planning to buy in a beach market, you are going to be seasonal. You’re going to have March through like mid end of October. You’re going to make all your money during that time and that’s okay. It’s. I see people say, oh, you know, the beach market only has a 60% occupancy rate. I want 85.

Avery Carl [00:14:54]:
So here’s an example that I like to give based on two of of my properties that when it comes to seasonality. So I’ve got a four bedroom property in the Smoky Mountains in Tennessee. It’s got an 85% occupancy rate. I also have a four bedroom in Destin, Florida a few blocks off the beach and it has a 62% occupancy rate. I bought both those properties in the same year for roughly the same price. So the expenses are very similar. So if you’re only looking at that occupancy rate and seasonality, you’re like, oh, I’m buying in the Smokies all day, but my beach house actually makes about $45,000 more a year than my Smokies property does. It just does it all between March and the end of October.

Avery Carl [00:15:37]:
So really the only thing you have to remember is when it is peak June, July season, don’t be spending all your money like it’s going to go on all year. You just have to make sure that you budget appropriately for the carrying costs through the low season. So you really want to look more at what your annual income is going to be more so than the seasonality. Because I would venture to say the seasonality doesn’t really matter that much. What matters to me is that gross income. And then what’s cool about beach markets is you can go use the property yourself some in the off season without cutting into your income. So if I want to go visit my Smokies property, I’ve got to block it off. It’s going to cost me a few thousand dollars in bookings for me to go be able to visit.

Avery Carl [00:16:18]:
But in a seasonal area, you can go visit without cutting into your bookings. So that’s super cool. But onto the snowbird thing, I see a lot of people who will buy in a beach market and then come November they’re in all the Facebook groups going, how do I get off season bookings? How do I book during the off season? And the answer to that, unfortunately is that you don’t. You just have to know that you are not going to be booked in the off season. Budget accordingly. During the high season you will make enough money for this to be a great investment. Just know your year is between March and the end of October. You’re going to start getting bookings January 1st for, for spring break.

Avery Carl [00:16:54]:
So just keep that in mind and it’s a really, really great investment. Just understand what seasonality looks like from an investment standpoint. Also, when it comes to snowbirds, typically snowbirds are older couples, so they’re going to Want one? Possibly two bedrooms, but really more like one. So if you’re buying a big four bedroom house, you’re probably going to crush it all summer, but you’re most likely not going to find a snowbird to rent that in the off season. So none of these are bad things. It’s just a. Make sure you understand this. So you’re not one of those people who in November is like, why am I not getting booked? Well, because people don’t go to the beach in November is why.

Avery Carl [00:17:30]:
Let’s see, what else do we have? So fishing, Is there a specific season for fishing? I don’t know anything about fishing. Is it summertime, is it winter time, like when you fish?

Bradley Klein [00:17:41]:
I think the season depends on the, the fish migration routes, which I don’t know a whole lot about it. So if there’s any professional fishing people watching this, don’t quote me, but I do know that it does tend to be seasonal. Depend on what you fish for per se. Can you fish this time of year? I’m not 100% sure, but I do know that pretty much from spring until fall, people are still fishing. Just what they’re fishing for does tend to change. But a lot of the time they, they let you keep your catch if it is something that falls within that, of course, the DNR’s allowance of, of keeping the catch. And then if you can have some fresh mahi or grouper or whatever it is that you, you haul up, which is kind of cool.

Avery Carl [00:18:28]:
Yeah, that is awesome. Are there places where you can take it to like just have them cook it for you?

Bradley Klein [00:18:34]:
There are actually some restaurants more on the south end, like Merle’s Inlet area where they actually have their own fishing charters go out and then their restaurant serves their local catch. As far, I think some of the guys on the boat will prep it for you. I don’t know if they’ll cook it also, but obviously if you have a single family home as a, as a rental, then you can go ahead and just cook it right on the grill.

Avery Carl [00:18:58]:
That’s awesome. I, I love eating fish. I don’t like any of the other process. I want someone else to catch it for me. I want someone else to clean it for me, but I will cook it. Do you know what’s the, what do you catch there? Like here it’s mostly grouper and red snapper.

Bradley Klein [00:19:18]:
Yeah, you have red snapper grouper. We have mahi, we have wahoo.

Avery Carl [00:19:26]:
Okay.

Bradley Klein [00:19:27]:
They kind of, they kind of your main ones.

Avery Carl [00:19:29]:
Okay, cool. So one thing that I really Want to touch on here that I mentioned at the beginning is that this market is very affordable for buying short term rentals. So I don’t want to get too far in the weeds on what things cost because if somebody, I want this, this to be beneficial for somebody who listens to it tomorrow or two years from now and you know, prices change, they go up and down. But I mean on average right now at the end of 2023, I mean you can get a two bedroom condo for under 250, right? Easily.

Bradley Klein [00:20:00]:
Yeah, they definitely exist for sure.

Avery Carl [00:20:03]:
Yeah. So I mean that’s a, a really great entry point because there’s a lot of markets. I would consider Myrtle beach to be a blue chip market in terms of, you know, the infrastructure and being able to find your cleaners and your vendors that you need and, and the tourism is there and that vacation rental longevity is there. So I would consider it a blue chip marker market. And I would venture to say I need to quit saying venture to say. I’ve said that more than once on this call. I would say that Branson and Myrtle beach are like the best deals in buying short term rentals right now, especially if you’re on a budget. A lot of people think, oh, you know, I don’t have 500,000, I don’t have 800,000 to get into the Smokies or Blue Ridge.

Avery Carl [00:20:50]:
But you can absolutely get into Myrtle for that. Really well, can’t you?

Bradley Klein [00:20:54]:
Yes. Yeah.

Avery Carl [00:20:55]:
So, okay, I’ve only really ever looked at condos there. What’s the typical like entry level single family look like?

Bradley Klein [00:21:02]:
I mean you could get a, a three bedroom single family for 4, 450, of course being in a short term rental zone and then of course they do increase from there. But I mean I know of a great area and in downtown Myrtle beach where Samantha and I have almost pretty much got a monopoly on that market just because there’s a particular, a particular group of single family homes, three and four bedrooms that you can get for you right around that 400 mark and they do really, really good numbers.

Avery Carl [00:21:34]:
Yeah, that’s a, that’s a great deal in terms of, I’ve just never looked at single families there. So is it, would it, would I be correct in saying, and I’m totally speculating here that typically there’s, unless you’re buying a three bedroom and up, it’s going to be a condo. So if you’re, if you’re looking for a one bedroom or two bedroom, it’s going to be a condo. There’s not really any one bedroom, two bedroom houses.

Bradley Klein [00:21:53]:
There’s not a whole lot of even three bedrooms. Pretty limited with the single family. It does, the inventory does become a little easier to come by at four bedroom up. And then your condos do generally tend to be from 1 to 3. And then once you get to kind of 4 and above, then they become more scarce.

Avery Carl [00:22:12]:
Okay, yeah, that’s kind of similar to here. Most of the time if you’re looking to do a 1, 2, 3 bedroom, it’s going to be a condo. And the single families don’t really start until four bedrooms and up. You can occasionally, occasionally find a three bedroom single family. But most of the time if you want to buy anything lower occupancy, then it’s going to typically be a condo.

Bradley Klein [00:22:33]:
Right? Yeah, it’s exactly the same here.

Avery Carl [00:22:35]:
So the last thing I want to touch on because I think this scares a lot of people about condos and there are a lot of condos in this market are condo associations and condo fees. So can you kind of tell us a little bit about those in this market?

Bradley Klein [00:22:51]:
Yes, I mean of course Myrtle beach is predominantly. So with one thing to just touch on is the zoning in areas. So of course you have North Myrtle beach, which is the city of North Myrtle beach, then you have downtown Myrtle beach, and then beyond that you have kind of the south side of Myrtle beach, which is like Surfside, Murrell’s Inlet, Garden City. And then beyond that you have Paula’s island and Litchfield. So zoning differs in each of them, but the most friendly of which does generally tend to be North Myrtle Beach. However, along the Grand Strand, essentially all of your oceanfront condos are short term rental friendly. Once you get further back, that’s when the zoning does become a little trickier, especially when it comes to single family homes. So but with condos in particular, of course they do all have differing HOA fees depending on amenities they provide, how many units there are, who manages the hoa and one thing I do generally like to coach my clients on is ultimately, yes, you may have a one bedroom condo with a 600 HOA fee, but when you take into account that it covers all of your amenities, it provides Internet, cable, includes the insurance, it includes your contents insurance, access to all the amenities, essentially you the only thing you have to take care of outside of that is any kind of liability insurance and then just making sure you’re paying your property tax, mortgage and that kind of thing.

Bradley Klein [00:24:19]:
But as far as ease goes, I think these make more sense once you kind of Break down the numbers.

Avery Carl [00:24:28]:
Yes. And that was exactly what I was getting at, is that a lot of people initially see an HOA fee and they think, oh my gosh, I can’t afford that. Because they don’t. They think, okay, I’ve got all these expenses, I’ve got my mortgage, my utilities, all this. Oh, and then there’s a $500 condo fee that kills my cash flow. But what you have to do is take a step further and look at it. So I, the building that I’m in is my office downstairs, and we have a three bedroom condo upstairs that has a 500amonth HOA fee. But it covers all my utilities except for electric.

Avery Carl [00:25:01]:
It takes care of the exterior insurance, which can be expensive in coastal market. So all I have to do is ensure the inside of it. And I mean, and it covers the exterior maintenance, anything to do with the pool. And I do have a private pool, my other property, so I know kind of what that costs to maintain personally. So you just have to look at a lot of times that 500 is not just an extra 500. It covers a lot of the bills that you would have to be paying anyway. And, and I think people also get really nervous about assessments, which for those of you who don’t know what a condo assessment is, every few years they’ll say, oh, hey, you know what? The condos need a new roof. And they’ll assess all of the owners a certain amount to pay for that.

Avery Carl [00:25:44]:
And people get really scared of that too. They’re like, oh, assessments. But when you have a single family, you’re doing all of that stuff on your own just over time. So you’re paying all that money. But it’s, you know, maybe some this month, some next month, we got to fix this. We got to fix that with a condo assessment. It’s the same thing, but it’s just happening all at once. So it feels bigger, but it’s the same amount of money that you would have paid to maintain it over time to fix these things.

Avery Carl [00:26:11]:
So that’s really not anything to be afraid of either. And I think the last thing that people get really worked up about when it comes to condos are the HOA is changing the rules to disallow short term rentals. But like Bradley said, most of the condo buildings, especially the ones on the beach in this market, exist specifically to be vacation rentals. So if you’re trying to buy a condo in Chicago, where a lot of people probably live in that building, yes, that would probably be something I would worry about is people deciding they don’t want short term rentals in there. But that’s because people live in Chicago. There’s not a lot of people who live in Myrtle Beach. People vacation to Myrtle Beach. People are probably living in that Chicago condo and don’t really want short term rentals in there.

Avery Carl [00:26:58]:
In Myrtle beach, every like 98 of the units are going to be short term rentals. So you don’t have to worry about those purpose built condo buildings ever really changing the rules on you and saying oh, we’re not going to allow short term rentals. Now I would imagine there’s probably one or two buildings that are supposed to be kind of luxury and don’t allow rentals. They only want second homes. But that’s something that you’ll know up front.

Bradley Klein [00:27:20]:
Right.

Avery Carl [00:27:21]:
So is there anything else that you want to touch on when it comes to condos in this market that, that people might not think about?

Bradley Klein [00:27:30]:
I think just kind of touching on what you were saying. So obviously there are hundreds of condo buildings. Not all of them are going to be. Not all of them are going to have the greatest return. Of course it’s difficult to sometimes look at a market and then see this unit. Wow, this is a great unit. But ultimately it all depends on the location, the amenities it provides, the quality of the building itself. Because of course a lot of these buildings are used as kind of condotels.

Bradley Klein [00:27:59]:
But so of course they check in at a front desk, they get a key card, they check into the room. But in the same breath a lot of them will allow the. If you own it and you decide you don’t want to use the on site rental then you can essentially just take that lock off the door and put your own keypad and then the guest just goes straight up to the room. But ultimately as far as kind of overall maintenance, there are just some buildings that are not as well kept. So just overall there are some buildings that just do much better than others. And then as I say on the, on the topic of, with the key cards and obviously the access thing, there are some buildings that will not allow as you say, they won’t allow people to self manage just because they want to keep, keep it in house. So it’s important to of course make sure you have the right agent who can coach these things 1,000%.

Avery Carl [00:28:53]:
You want to make sure that your agent knows the different nuances of the condo buildings. The ones who are going to say hey we, you have to use our management company. There was one that I almost bought in that they allow you to self manage, but I had to do some real digging to find out that they charge you $75 per booking of your self managed to the condo building. So you really do need an agent who understands the nuances of the different cond condo buildings and has that experience. I almost put in an offer on something in a market that the short term shop does not operate in. And the agent told me, I said, okay, well it was a condo. And I said, do they have any restrictions on who can manage the property? I know they allow short terms, but do they have anything? And the agent said, well, it’s your property, you can do whatever you want with it. And I was like, that doesn’t sound like you’ve done this before.

Avery Carl [00:29:45]:
So you definitely want to make sure that your agent understands all of those nuances. So Bradley, we’re about to wrap up. Is there anything else we haven’t touched on that you feel like the listeners would benefit from hearing about why Myrtle beach is a great place to invest?

Bradley Klein [00:30:00]:
I think the kind of the biggest thing you say, especially with most of our clients looking to self manage is, is the entry point. It’s still one of the few markets where you can still get a great return. I know people are generally looking for a 20% return and that is still doable sometimes in, in cases you can still do higher than that. So of course entry point is definitely, it’s definitely one of one of the big ones.

Avery Carl [00:30:25]:
Yeah, totally agree with that. This is a really great place to get into if you don’t want to spend a ton of money to start off. All right guys, if you want to start shopping with us in the Myrtle beach market, you can email us@agentshorttermshop.com and we’ll connect you with Bradley or our other great agent there, Samantha, if maybe you aren’t quite ready to do that, but you want to just start learning more about short term rentals, there’s a few ways you can do that. You can join our Facebook group called Short Term Rental Long Term Wealth. Same title as my book behind me. It’s just us and 60,000 of our closest friends talking about short term rentals in there all day. Or you can also join us every Thursday. We have a live Q and A call and you can sign up for that@str questions.com.

Avery Carl [00:31:06]:
we’ll catch you on the next episode. Sa.