Considering buying in S.C.

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efrapp02
Posts: 2
Joined: Sun Jun 26, 2005 8:26 pm

Considering buying in S.C.

Post by efrapp02 »

Can anyone please give me any tips, suggestions, warnings etc. about buying vacation rental property for the first time? I am strongly considering buying in North Myrtle Beach, S.C. A friend recently bought there and it seems like a place that offers great rental potential and great appreciation potential. Any info would be greatly appreciated.

Thanks,
Eric
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tansy
Posts: 2059
Joined: Mon Sep 20, 2004 6:29 am
Location: La Manche, Normandy, France

Post by tansy »

Eric...welcome to the forum...sorry haven't a clue to your question...just wanted to say hello & welcome!

Tansy
efrapp02
Posts: 2
Joined: Sun Jun 26, 2005 8:26 pm

Post by efrapp02 »

Thanks for the welcome. I almost made it to France for a brief trip (1 day) earlier this year but it wasn't to be. Too bad. Maybe someday.
hhirental
Posts: 1
Joined: Wed Jun 29, 2005 10:52 pm
Location: Hilton Head, SC
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buying in SC

Post by hhirental »

I don't know Myrtle Beach area, but we do own 2 homes in Hilton Head SC. Appreciation potential is still great, but cash flow is quite negative at today's prices. Home rental market may be different from the condo market. Whatever you can do to differentiate your property from someone elses will help!
Good luck.
fee
Posts: 11
Joined: Tue Jun 28, 2005 6:37 pm
Location: Florida
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Post by fee »

Hi Eric

We have a vacation rental in Kissimmee, Florida so not sure we can give you any advice!

What I always say to prospective purchasers are the following:

- buy what you want for your family
- work out a budget and stick to it (!) - don't let yourself get sold up
- do they sell you on guaranteed rentals as they do in the Orlando area? Contract is not worth the paper it is written on, believe me we have the t-shirt.
- never, ever underestimate how much time it will take you to rent out your home. This will be a second job and take over your life. You need computer access all day as the early bird catches the worm (this is particularly true in Orlando where there is now an over-abundance of rental property)
- you will never have a holiday again! You will spend your time at the Home Depot / Lowes or Walmart, and everytime you go SOMETHING needs doing.
- Don't forget taxes - in our county we pay 13% to the state and county on all rental income, and houses are inspected prior to a licence being granted (well they are meant to be). You will also have an annual Property Tax which is based on the value of your house, so when property rises, so does your tax
- can you afford for your home to be empty for 6 months of the year? (this is based on the the Orlando area where it is 52 weeks rental, so don't know what it is like in S Carolina), because it could be, anyone can let the peak season (Christmas, Easter) about 200 times over and high season (summer) slightly less. Half terms and US breaks are popular, other times can be deadly.
- we have seen unheard of and spectacular growth in property prices in Florida, partly due to the influence of TV programmes who tell everyone you can cover your costs renting :evil: - don't have a clue about S Carolina!!
- If after all that you are still keen, go for it!

Hope this helps and do let us know what you decide.
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vrooje
Posts: 3202
Joined: Thu Dec 09, 2004 2:48 am
Location: Burgundy, France

Post by vrooje »

Despite living in the US, I don't know anything about the US vacation rental market.
fee wrote:you will never have a holiday again! You will spend your time at the Home Depot / Lowes or Walmart, and everytime you go SOMETHING needs doing.
However, I can testify that fee's statement is completely, 100%, true! This is probably a general statement for all rental owners. There is always something to be improved!

However, the work on the house can provide some interesting stories. We've seen gorgeous parts of the French countryside when we were on our way to the Bricomarche (hardware store)!
Brooke
A-two
Posts: 2091
Joined: Mon Oct 25, 2004 10:05 am
Location: USA

Post by A-two »

Hi Eric,
Greetings from New York. I don't know anything about SC, but there's no negative cashflow here. Did you check the listing sites for properties in your area, to see how many red weeks they still have open on their availability calendars?
Waves from America
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