[00:00:02] Speaker A: Welcome to Short Term Shopping, where we explore homes for sale in the best vacation markets in America.
Some homes we do like, some homes we don't like.
Brought to you by the Short Term Shop.
It's Short Term Shopping.
Short Term Shopping. Here we go. We are in Myrtle beach on the beach and.
Sorry, I called it soccer. I know that's not correct.
[00:00:36] Speaker B: No, it's football.
[00:00:37] Speaker A: Football, yeah. Yeah. See, football's. To me. I actually googled it. My son was asking me, he's like, when's football starting? And it said 82 days. So that's obviously different for us. It's the.
And I like college football, but where you come from, it's all about the soccer, and that's been a lot of fun. I went to the World cup match in Atlanta.
Took the kids. They had a ball.
[00:01:04] Speaker B: Yeah, I saw your videos. I was, as I say, I was watching England let us down yesterday against Ghana. It was a tough game, but there's times when England shine and then there's times when I watch them and it's like, you know, they're just, like, they just look like a. They just don't gel. But, yeah, it's definitely football. The rest of the world calls it football with me.
[00:01:26] Speaker A: Yes, I know, I know.
I don't. I'm not as big into it as Avery. She is very jazzed up on it, and she's. She likes to watch all the games, you know, so she. She's having a good time with it right now. But.
But anyway, let's shop for some real estate in Myrtle beach and see what's doing, man. You got any. Got any things to show us?
[00:01:46] Speaker B: Yeah, so I've got a few, you know, condo listings, single family home listings. Let me pull up my screen here and share it with you and we'll.
[00:01:54] Speaker A: Let's do it.
[00:01:55] Speaker B: We'll get going through it.
[00:01:58] Speaker A: All right.
[00:01:59] Speaker B: Okay.
[00:02:00] Speaker A: Wakama Drive.
[00:02:02] Speaker B: Yeah. So the first one I'm going to start with here is. This one's a direct ocean front, big property, eight bedroom, eight and a half bath, almost 5,000 heated square feet. It's on the beach, as you can see.
It's actually in a gated part of Garden City Beach. So if you think of Myrtle beach, it's kind of. You got the city. City limits of Myrtle beach, which is the downtown area, North Myrtle beach, and then the south end, which is like Surfside Gard City, Murrells Inlet. So this is in Garden City. It's. It's kind of on a thin peninsula between the inlet and the Ocean. So it's kind of one way in, one way out, but super popular area for, you know, larger groups coming down, group families, that kind of clientele type. But Obviously Price.3.85 Rental income in this area. So there are comps of up to like half a million.
However, obviously to get those type of numbers, you, the amenities are important. So as you can see, this property's got, it's got a pool, it's got a hot tub, it's got the fire pit.
You're on half an acre. So it's a good size lot for the beach.
I mean inside I think it's, it's a nice property.
Maybe it could do with a few more changes to jazz it up. You know, I think the, the theme thing is definitely becoming more popular here.
The pop art theme, murals, things like that, just to kind of help public listings stand out.
But I think if somebody is looking for direct ocean front, this is a great property to go with
[00:03:40] Speaker A: 3.85 down.
[00:03:42] Speaker B: Sorry, go ahead.
[00:03:42] Speaker A: The ask price is 3.85.
[00:03:45] Speaker B: Yes.
[00:03:46] Speaker A: How long has it been for sale?
[00:03:47] Speaker B: So this one's been on the market for quite some time. So it's a 2024 listing. Been on the market for almost two years, which ultimately suggests it's overpriced, which for an eight bedroom, even though it is a larger property, it is a little bit dated. So you're probably looking closer to 3.5 for something like this. I mean, just the land value alone is probably 1.5.
But one of the downsides to Garden City, and I kind of want to point out the drawbacks, is of course that area does have an issue with footing now, not necessarily from even hurricanes and storms. It could even be a king tide, things like that. So it's kind of one of the drawbacks to that area, which could also be one of the reasons that it is still, still sat on the market.
So personally, I mean much as this is a beautiful beach house and a great example of a beach house, I think if I were to go kind of direct ocean front, I would probably stick to like North Myrtle beach or the Surfside Beach Market where you're a little bit more, you don't have the issue with the footing. And when I say flooding, I mean you, you, the road gets some water on it. It's not like the whole area ends up underwater or anything like that, but it does, it's a real low lying area. So it, it can have some issues with, as I say, water on, under the property, which obviously pool Hot tub, things like that. It could be a maintenance issue for sure.
[00:05:18] Speaker A: And do you know about the. Any idea about insurance? Like, can I get flood insurance on this thing?
[00:05:23] Speaker B: Yeah, you can. So it's going to be in the VE flood zone, which is the highest flood zone in this area.
Of course, the property is elevated, so you'll have elevation certificate. You can get foot insurance. It is of course going to be a higher premium than for example, something second row that might be a lower flood zone or not even in a flood zone, for example, which we'll come to that with some of the other examples I've got here.
But I mean, if somebody's, you know, you, you get certain people where they, they want to be on the beach, they want that ocean front.
So outside of that, I think this would be, would be a good example.
There's not too many ocean front properties on the market right now. Where I would say, yeah, definitely go for that one.
But moving on to they've got the
[00:06:17] Speaker A: million bucks already that's maybe worth noting is that the Original ask was 4, 8, but I wonder what they paid. Can you. Is there a price history here?
[00:06:25] Speaker B: Yeah, I can. Let me have a look here. So if I pull up this tab, scroll down here. So bought it for 1.75 back in 2020.
So they're definitely trying to get probably a little bit more than it's worth. I mean, 2020 was early Covid.
Obviously we did get a huge price increase in this area during the COVID era, I would say. I mean, prices in a lot of cases doubled over over the course of, you know, the two year period.
But even so, I mean, the market's saying no.
And the only real reason the markets are saying no right now is because they are overpriced.
[00:07:04] Speaker A: Yes. Yeah, I did bought it literally the day Covid started.
Yeah. Yeah. And you know, we see that a lot. I mean, I would assume you see it a lot too. But in most of our markets, we see a seller profile exactly like this where they're shooting for the moon that post Covid prices and they're now, they're, you know, after a year or two starting to realize I'm maybe I'm not going to get that number.
[00:07:27] Speaker B: Yeah, I'm still finding it's definitely prevalent. Like the sellers are still very much in the mindset of COVID and also thinking that it's still a seller's market and it just isn't. So it's kind of having a come to Jesus talk with them and getting them to Realize that even though they have done a million dollar price drop, it is still obviously overpriced.
Move on to the next one.
[00:07:54] Speaker A: Yes, sir. Please.
[00:07:56] Speaker B: Okay, so this one here. So this is a six bedroom, five and a half bath. It's two blocks back from the ocean. Which.
Two blocks back? The blocks in North Myrtle Beach. This property is in North Myrtle Beach. Two, it's two blocks back. It's. You're talking about a two minute walk. So the blocks are really small.
So you look at a map, you think, okay, wow, that's. It could be far away. So let me zoom out here, for example, you would think. So this is the main highway here.
And obviously this is Ocean Boulevard, which is the road parallel to the beach. But this is like half a mile, so you're really not far away from kind of the main highway. And pretty much everything in this area is str friendly. This is kind of like the str mecca of North Myrtle Beach.
So this property here is a, as I say, 5,000 heated square feet, six bedroom, five and a half bath.
It's been on the market for da, da, da, da, 61 days. So a little over two months.
[00:08:59] Speaker A: I would.
[00:09:00] Speaker B: So given the price point at 2.2, I mean, for a property like this, I mean, first of all, to me it's kind of finished, like it's somebody's home, not a rental property. Which I think, although it is an str friendly property, I don't think it's being used for that purpose.
I think one of the other downsides to this particular property is if you look at down here, the number of acres is 0.15, so you've not got a huge lot. And when I go on the public records here, you can pretty much see that the house takes up almost the entire lot. So you don't really have a whole lot of room for adding amenities. And this actual, this property as well doesn't have a pool.
So you kind of see it in this picture here a little bit. Let me see if I can go full screen. You kind of see here it's got a really small backyard. And I think one of the things that's really important if you're going to have a single family home is your amenities.
The pool, hot tub. Some people do, some people don't. I don't find a huge difference in rental income of pool versus no pool.
Um, but you know, golf's massive in this area. So anything golf related is always going to be absolutely killer.
You know, the putting green, the golf simulators. But I Think with this property being the price that it is and the fact that you're still going to have to invest a bunch more money and trying to figure out some amenities on the inside of the house, you're still lacking space on the outside to kind of compete with other properties that are perhaps a little bit more STR focused, if you will.
And also I think the price, given that it is two blocks back from the beach, I mean you're probably going to want to be closer to 1.8, I would say. I mean, yes, it's 5,000 heated square feet, but again, you still don't have those amenities that people are looking for.
And as you can tell, I'm kind of starting with the ones that I would kind of maybe not recommend as, as a STR or a viable str
[00:11:10] Speaker A: because I do like that one. Yeah. And yes, it is a second home. Clearly it's, it's. If it is being rented, it's not being rented very much for sure.
[00:11:18] Speaker B: I mean looking in, the agent marks are not really giving us too much information.
[00:11:24] Speaker A: I do like the, I like the location in like the. I like the furnishings and things. I think it looks fairly a little more modern than the last one anyway.
[00:11:32] Speaker B: Right. And you do technically still have ocean views. So as I mentioned, because the blocks are so small, once you're up on the second floor or even the first floor balcony, you can actually see the ocean from kind of one or two rows back. Like as far as single family homes. I'm a huge advocate for buy second or first.
First or second row. So kind of ocean, Ocean Boulevard, but on the non ocean side or a block back versus buying ocean front all day long.
[00:12:04] Speaker A: Yeah. I'm surprised because, you know, as you're talking me out of this one, I'm looking at it, I'm like, I don't know, I kind of like this one, but I get it. It's. Yeah. We need to offer a lower price on it basically. Right.
What's the empty lot next door we had to ask about that I would assume.
[00:12:19] Speaker B: Yeah, yeah, yeah. So I, I've actually, I've got a listing on here actually that sits facing this property and it's a kind of an example of what a great STR would be.
[00:12:29] Speaker A: Okay.
[00:12:31] Speaker B: So it is actually this one here. So this house here is a new construction. So it's literally just finished.
It's a five bedroom, four bath, 2600, almost 2,600 heated square feet.
I mean this one's got all the bells and whistles. I actually, I Know the guy who, who put the money to build this house. I've actually shown it to a client of mine.
But I mean this one's got the, you know, the hot tub cascading into the pool. It's got the kind of splash area for the kids.
But not only that, but it also has this little entryway here that is heated.
It's got a room in the back on the lower floor that's heated, that kind of backs into the pool area. So you know, great for maybe a little hangout area inside.
It's got a wraparound two car garage which I think you could get creative with that area, make it into a game room. It does have the ductwork already down there in the ceiling. So I think you could probably, you know, invest a little bit of money into actually having that garage area heated and cooled, turn it into a really sweet like game room, hangout area, maybe even increase the number of bedrooms.
But I mean you look at the kitchen area, it's like really, this is kind of your luxury sti. You've got high end appliances, high end cabinets, high end countertops. I mean this is kind of like, you know, the, the epiphany of, of, of luxury.
Let me try and get out of this here.
[00:14:05] Speaker A: It's not half as many square feet as that last one, but it's cheaper and it has the pool and you literally don't have to do anything.
[00:14:15] Speaker B: Right?
Exactly. And I think actually the other one's almost too big. I mean 5,000 heated square feet, it's a lot of space for, I mean for that property size you'd almost be expecting eight, nine bedrooms. But the fact that it was only a six bedroom, you're basically just going to have massive rooms to fill with stuff which again great for amenities, games rooms, whatever people decide of cinema, things like that. But it's, it's a, it's a lot of space. Whereas I think for a property like this it's, I think the biggest downside to this is it doesn't have really enough common space. Like I think you would need to convert the garage into a kind of, into a additional heated square footage because obviously total square footage is 5,000. So one, obviously you take into account the downstairs, downstairs area, the balconies, you're probably looking at an additional 1200 heated square feet just in garage space space, sorry, unheated square feet.
But it's also got this area here. So although you've got the fenced in pool area down the side of the property, there's a Huge green area between the two houses that's actually part of this property, which I think it would be an awesome area to put like a pudding green, you know, cornhole, things like that.
Just to really kind of capitalize on the space, to use the space and again, stand out against the competition as
[00:15:47] Speaker A: far as what's something like this Rent for ballpark, Gross income.
[00:15:51] Speaker B: So gross income on something like this in the, what, top 25 percentile?
[00:15:57] Speaker A: Yeah, somebody that's, you know, really paying attention.
[00:15:59] Speaker B: Oh, I would say if you're really paying attention, you could easily do 200 to 250 on something like this.
I've got a lot of clients that I stay in contact with and kind of, you know, they'll send me their annual numbers just because working in the industry, it's nice to know that your clients are doing well.
My top producing client last year, he did 286k on a 5 bedroom, 4 bath. Very similar to this property.
In fact, this one here was actually done by the same builder. It's not his property, but his is more this style.
It's got a little bit more heated squares footage. So like, you know, 3200 heated. This one is not for sale. It's just kind of an example of one. But as you can see, this guy's kind of done. He's done the golf simulator.
He's done the like, he's finished the outside a little bit better. It's gone for that pop art kind of theme, if you will. But yeah, they. A guy who owns something very similar to this did 290k gross in, in his first year with the property.
All right,
[00:17:07] Speaker A: if you're listening to this, be careful with that number. That dude is really, really working hard.
[00:17:12] Speaker B: Oh yeah, he's working hard. I mean, I would say, you know, it could comfortably do 200k.
So on to the next one.
So this here is back on the south end of the beach. It's a five bedroom, five and a half bath. Again, newer construction. The reason I'm. I'm not purposely focusing on new construction, but I do generally find that the newer properties, first of all, you know that everything's up to code. Myrtle beach does have a lot of older style properties. I mean, there's older beach houses that, that have been around since the 40s and 50s.
So sometimes you just got to be careful with those as far as updating electricals, plumbing, things like that. It can get old, it can be updated. If you buy new, you're getting good value. A lot of times you're getting more equity right up front.
And this particular builder, I actually had a client buy one of these properties earlier this year. He really does think about design when it comes to strs. So does the pool. Does the. Has large common areas, which I think is important. And one of the things kind of overlooked in this market if it's. It's important to have bedrooms, but it's also important to have the space to fit the people that. The bedrooms that, you know, the number of heads on beds. If you've got a house that fits 20 people and you've got one living room, where does everyone hang out? Like, yeah, they go to the beach and they're going out, but people also like to hang out in the house and at the pool. So I think having a decent amount of common area space is also important.
And it is. Again, one of the things that I think is overlooked in this market is people focus on bedrooms, but they don't focus on having space for them.
Obviously this one is under construction. Sorry, go ahead.
[00:19:03] Speaker A: Are we. Sorry, are we living in a time where this builder is now getting. Because on my market, this builder would probably be very excited with a buyer right now.
In other words, are these builders still very busy or are they slowing down and getting excited about a buyer?
[00:19:23] Speaker B: So I would say a lot of the new countries. So I've worked with this listing agent. I don't know this builder in particular in the Surfside one. The other property I do, Surfside moves a little bit slower. I think Surfside is. There's a lot of second homes, a lot of retirees in that market as well as strs. So Surfside does generally move a little bit slower than, for example, North Myrtle Beach.
So I would say in Surfside, definitely, yes.
However, in North Myrtle beach, inventory is still moving pretty quickly. Like, I can tell you that I've got a couple of builder contacts that I. They, you know, we stay in contact. They send me their upcoming inventory.
Most of their properties never actually make it to the MLS before they actually sell.
So the market is still moving pretty well. It. But it does still come to, you know, market research, pricing the product. Right. But because we are still a relatively lower entry point beach market for the, for the size of property you get.
We do.
[00:20:27] Speaker A: We.
[00:20:27] Speaker B: We are still moving investment inventory pretty, pretty, pretty, pretty. Well, I would say.
[00:20:33] Speaker A: Would you say a new construction is moving faster than not new construction?
[00:20:39] Speaker B: Yes.
Yeah, the resale market's definitely taking longer to move, and I think it does kind of come from that
[00:20:48] Speaker A: dealing with
[00:20:49] Speaker B: the whole seller Objections Just pricing too high.
If you've got a builder, most of the time they know the market. They're also building it. So they're obviously getting their markup when they come to sell it versus resale.
The market hasn't shifted a whole bunch. I wouldn't say we're on a decline market as far as equity goes. But after Covid and that era, there was definitely a reset, if you will. So the price is definitely stabilized, I would say. But you've still got sellers that are trying to price their house $150,000 more than they bought it for a year ago, which is just unrealistic. So I think it's just having that being able to handle that objection with the resale versus, as I say, new construction.
Interesting.
But.
But yes, this, this. Yeah, go ahead.
[00:21:45] Speaker A: I'm so sorry. Can you show me the map? Click on that map and see exactly where that one is?
[00:21:50] Speaker B: Yes.
So this is approximately. And I. So if I zoom all the way out.
So this is kind of the main highway here that runs all the way through to Myrtle Beach, North Myrtle Beach.
So here you can go. If I zoom out even further so you can kind of get a better idea of the map. You've got north Myrtle beach up here.
This is kind of like the downtown Myrtle beach area. And then this is kind of the south end I was referring to. So kind of Surfside murals and lit Garden City is incorporated into the Murrells Inlet section. But that would be this area here you can see.
So this property is in the city of Surfside, which is its own township.
Definitely have to get a separate business license. We don't have any, you know, permitting or anything like that required. As long as the property is STR friendly. You don't have to get permits. You do have to get business license.
[00:22:44] Speaker A: Oh.
[00:22:46] Speaker B: But yeah. So again, we are two minutes walk to the beach. Public beach access right at the end of the road. All the beaches here are public.
[00:22:56] Speaker A: I noticed this is not finished. A two part question. Are they going to. Are they looking for a buyer to get under contract before they finish it or they will just finish it out?
The second question is, sorry, are they, are they doing a lot of these at one time or are most of these builders doing one offs?
[00:23:14] Speaker B: So a lot of them, they're doing one or two at a time. So you'll typically see one or two of these new constructions hit the market right about the same time.
So this one looks like it's a July completion, which is probably why it's now on the mls probably trying to get a buyer ready to actually close on it when it's completed.
I'm assuming at this point, if it is still a July closing, that the pictures probably do need to be updated because if it is still in this condition, it's likely that it's probably not going to hit that July completion.
But I can say that the finished version of this is a, it's a really, really nice product. As I say, I had a, a kind of mine. It was a resale but it was done by the same builder. I actually realized after the fact it was the same builder when I saw this listing. But this one's a really nice product rental income wise.
Surfside for something like this. Five bedroom comfortably. 150 North Myrtle beach is, it's. It's the str Mecca. It's where we get most of the volume of vacationers Surfsides. If, if people want to buy something, it's a little bit more of the southern charm down there. You know, the live oak trees, the Spanish moss. It's kind of got that southern charm feel.
North Myrtle beach, it's, it's probably a little bit more similar to the kind of Destin 38 type of area. You've got a lot more houses kind of closer together, a lot more hustle and bustle closer to the amenities of the area.
So North Myrtle beach definitely has more income potential than, than surfside.
[00:24:54] Speaker A: Okay.
[00:24:56] Speaker B: Okay. So onto the next one. So this is something a little bit more with a friendlier price point. So you still get in a five bed, three and a half bath but you're under 900,000. So you. Right at 899, you're still at 2100 heated square feet.
You still. So this one's, you know, four, five blocks back from the beach but you're probably really about a five minute walk.
So 0.2 miles give or take to, to the beach. From this listing.
[00:25:30] Speaker A: What's the build date a year?
[00:25:33] Speaker B: This is 2005. So this is 21 year old.
[00:25:41] Speaker A: How common is it to find old properties in your area?
You know, 6,000.
[00:25:47] Speaker B: It's pretty common. A lot of those you're going to
[00:25:49] Speaker A: have,
[00:25:52] Speaker B: you're going to have, you know, grandfathered in downstairs. He did square footage. Oftentimes they're typically your more traditional style or rent style properties.
So with those they, they do typically need a little bit more work. Which actually the next listed I'm going to show is, is kind of a good example for something on the low.
[00:26:13] Speaker A: Don't let me Jump the gun. Sorry.
[00:26:14] Speaker B: No, you're fine. It's kind of on that lower end price point where maybe there's a little bit more value, add a little bit more equity. Equity to be gained.
And not everybody's looking for a $2 million beach house. But not everybody wants to have an oceanfront condo just because of course condos do come with a little bit more work on the financing end and of course not everybody likes the HOA aspect. So I kind of tried to add a little bit of everything, if you will, kind of from the oceanfront all the way down to a two bedroom single family.
[00:26:45] Speaker A: I got you. All right. Okay, here we go. Back to this one. We got a 20, $20,000 price drop already.
[00:26:52] Speaker B: Yes.
[00:26:53] Speaker A: How long has it been on market?
[00:26:55] Speaker B: This one has been on the market for so almost four months.
[00:26:59] Speaker A: Okay, so you're so good with math.
[00:27:04] Speaker B: Pretty quick that wasn't it?
[00:27:05] Speaker A: Yes, it was impressive.
[00:27:07] Speaker B: So it's good sized property. It's pretty nicely updated inside. You know, they've added a little bit of color to stand out. I think doing adding color to listings is definitely important as far as like the Airbnb side goes to just help it pop.
Again, looking at this one, I don't think it is currently being used as a rental property. I mean some of the finishes to me do look like it's perhaps focused more on somebody's either second home or, or even their primary.
[00:27:39] Speaker A: But yeah, this one looks to me like almost like they said if you want to sell this thing, you're going to need to do some updates.
[00:27:45] Speaker B: Yes, I would agree. I mean, because you've got your original tile floor and all of a sudden you've got this brand new waterfall granite marble countertop going on.
[00:27:55] Speaker A: And the original fridge, you know.
[00:27:57] Speaker B: Yeah, exactly.
[00:27:58] Speaker A: And the grandpa chair. But the super cool.
[00:28:00] Speaker B: Yes, they do still have the grandpa chair. But then they've got the like you say, they've done the decal wall behind the tv. So yeah, it looks like they've kind of got it just enough ready to list it, but not enough to spend another hundred grand in upgraded in kitchen and things like that.
But I mean for the entry point being that it is a five bedroom to only be at 900,000, it's a good price point. I mean typically, you know, entry point on a, on a decent three bedroom, you know, with a pool raised beach house, you're looking at 750 entry point and your four bedrooms you're looking at about 850.
So given it's a five bedroom. It is, it's a good end. It's a, it's priced well. I mean it is a smaller lot. At only.13 acres leads me to believe you're not dealing with a whole lot of space in the backyard. But I mean you, you could still configure it, you know, get rid of the, the slab they've got there. You could fit a ball back there, you put a pool in it.
You're talking a million dollar plus property. Given that it is again a five bedroom,
[00:29:10] Speaker A: I think this one's got great.
[00:29:13] Speaker B: Yes, I agree.
[00:29:14] Speaker A: And the price tag's very appealing. It gives you a couple of bucks, you know, compared to the other ones we're seeing. We're seeing. Anyway, it gives you a couple bucks to deal with the furniture and things like that.
[00:29:22] Speaker B: Right, right.
And then onto the final one. So this one's more of like a, a lower price point. Two bedrooms. So this is only 345,000.
So it is a, it's an older property. So it's from the 60s. So kind of in, in the area you were talking about, it's only a two bedroom, one and a half bath. And you can see that it is a really small house at only 660 heated square feet. But, but bear with me on this one.
So if I look at kind of the comps for the market in the two bedroom price point area, you're looking at something that's a little bit more square footage, maybe a few amenities.
Your price points quickly get up into the half a million six hundred thousand for a two bedroom. So I think this is one of those great kind of value add properties and you've got almost 210 of an acre.
So it is as it is, it's currently dated. The owner did replace the roof, the H Vac, So as far as your kind of bigger ticket items, they have been taken care of.
It is one more of your traditional style. So it's got the paneling, ceilings, it's a really small common space. But I think this is one of those where if you knock down some walls and add on a couple of rooms, you could very quickly turn this into, you know, a three bedroom, two bath, add some amenities outside a driveway, update the outside a little bit, give it a little bit more curb appeal and then you quickly, you know, spend 100 grand, 150 grand on it and then you've got a three bedroom property that with income potential of up to like a hundred thousand. So I think this is one of those where if you're Looking for a project, something that you can add value to. I think this is probably one of the better ones on the market right now. It's got a really big yard space, so it's got the room for, for, for an extension on the property if you wanted. It's got the room for the pool, it's got the room for a putting green or cornhole or whatever it is you want to do out there. So.
And it's hard to come by properties in the North Myrtle beach area that have land because what a lot of these developers do, they'll buy these old houses and then they'll subdivide it. So they'll build a, you know, three or four bedroom raised beach house, but they'll do it on about a tenth of an acre. So you don't really have a whole lot of additional space. So I think as far as a value add, this one has potential.
[00:31:55] Speaker A: This is, this is in my wheelhouse. This is. I would buy this and not, I mean, just do some updates but not add on or anything. This is right in my wheelhouse.
I would get rid of the sheds in the backyard and put a pool, like just a 15 by 8 or whatever. Just a regular old little rectangle pool. What's that cost in your market? Like 75 grand?
[00:32:19] Speaker B: Yeah, about. Something like that. About 70 grand? Yeah.
[00:32:22] Speaker A: Yeah. Where was the location? How far is it from the beach?
[00:32:25] Speaker B: So this one is Hillside Drive, so you're looking at four blocks back.
[00:32:29] Speaker A: I would just turn this into a cute little honeymoon deal. I, I can't imagine, I can't imagine that a seasoned operator can't do 50, 60 grand on this thing pretty easily. Right?
[00:32:40] Speaker B: Yeah, that's, that's what I comped it out at, about 50 to 60 grand. If you added the pool, you could definitely do 60 grand, something like this.
[00:32:48] Speaker A: Yeah. And even at the two, it's the one bathroom hurts you a little bit.
[00:32:52] Speaker B: But yes, I agree. That's where I was thinking the angle of maybe adding on.
[00:32:58] Speaker A: But your rentability is very high. You're, you're, you're pain in the ass for dealing with, you know, your guest.
We shouldn't come up with a name for that. The pain in the ass scale of the guests will be very low because you're only dealing with like two to four humans, right?
Yes, it's right in my wheelhouse property.
[00:33:15] Speaker B: For somebody who's, you know, husband, wife, honeymoon husband and wife and a kid, kind of your smaller families that are, that are still vacated into the area who don't Need a whole lot of space, but they still want the privacy of being in a single family home as opposed to dealing with the hustle and bustle of being in a condo.
[00:33:34] Speaker A: I have a Tutu beach house that's a unicorn. We don't have, this is on 38. We don't have two bedrooms down here. There's one little neighborhood, they call it the Brickyard that is a bunch of 60s brick branches. They're like brick from head to toe and like they're not typical red brick. They're, they're more like cinder block.
And that neighborhood is definitely old and dated, but it's some sort of cool.
Mine is in a completely different area several, you know, probably four or five miles down the road and it's in the middle of like all these six, seven, eight bedroom monsters. And it's a, it's just like one of a kind. It was actually my neighbor built it for his dad, father in law who it was like a, basically a guest house and down the end of my street and we bought it and, and we're renting it out. And it's a 2, it's a 2 bed, 2, 2700 square, 800 square feet is tiny.
And it's never empty, is never. And now I'm not saying it's crushing it and making like a billion dollars a year. I'm not saying that. But I am saying it's very easy to rent because I'm basically competing with a hotel room, you know. Right.
And I can, I can offer a lot more with the second bedroom in the full kitchen, in the washer and dryer than a hotel can.
And, and I can keep my prices fairly low because you know, the price
[00:34:55] Speaker B: overheads are going to be lower too. I mean if you've got a two bedroom condo, you're looking at, you know, 8, 900 doll month just for your HOA fee. Whereas here you've got no HOA fee. It's a small square footage. So your electric bill is not going to get too high. I'm sure your water bill is not going to get too high. So your overheads are not going to be too crazy on this versus essentially the competition which is a condo.
[00:35:16] Speaker A: Yeah, and, and, and that one I just described, I paid 600 for that and put 60 grand into it. So I'm in for 660 and I'm very happy with it. Again, this is a completely different state, but it's the closest thing I have to a, to a comparable situation. But I love that little house. I Know that every time I drive by and I drive by it every day that there's going to be a car in the driveway.
[00:35:37] Speaker B: Yeah, it's. Yeah, I think, I think this is, definitely has the potential to be one of those properties. I mean it's just a derelict house that again like you to get it listed, they probably put on a new roof, replaced a couple of things, but really they're just trying to offload it and then kind of one final one as far as the residential go is. So this is kind of more of a off market opportunity, which I like the off market opportunities because first of all, when a lot of these newer properties do hit the market, as I say, a lot of them don't make it to the mls. But because the builders do tend to price them at what the market value is, they do go quite quickly because of course there are, other than just myself, there are other agents in the market, a lot of investors buying in the market. So when they hit the market they go pretty quickly. So this is kind of an example. It's, it's a, it's a really, really nice build. So it's, this is a six bed, six bath is an example of one the guy already sold. But as far as what it's got, I mean he's got metal roofing on it. He's kind of got the nicer finishes outside. It's more of a modern take on a, on a beach house, I would say all wooden paneling on the undersides of the, of the balconies on, on the roof as opposed to, you know, the vinyl stuff. So it kind of just gives it that little bit of contrast.
Two living rooms, one on each floor. Also a separate room outside of the six bedrooms that operates like a games room. So a ton of common area space.
Really nice finishes in the kitchen.
And then when you go downstairs, obviously bathrooms really nicely finished, floor to ceiling tile, nice upgr doors.
And then outside, if I can get down to the outside. Here we go.
So you got obviously really nice, you know, 30 by 15 pool and then this garage here, behind this garage, it's kind of like just a, a heated pooled room that is like, you know, one of those, you go to those bars where you open the, the kind of fire door, shutters kind of let the outside in.
I think it would make a great one of them which, because it's kind of like facing the pool, I think it's a really cool idea to have as like a bar type chill out kind of space.
But Again, price point 1.37 on this one. And I know this build has actually got three that is working on right now which are going to be finished later this year. So, you know, anyone looking to do like cost segregation, things like that towards the end of the year, I think this is a great product. And the three that is building, they're also on like a quarter of an acre lot.
So the backyard space is massive. So again, as far as value add for amenities and things like that, it's a really good product. And because it's new, people like shiny and new when they're in this price range with the elevator and things like that, new is what stands out.
[00:38:38] Speaker A: Yeah, this is polar opposite of that two bedroom. We just looked at totally different types of investors and neither one of them are wrong.
And I have both of these types. I'll buy the newer big fancy house and I'll buy the old little house. It just depends on, you know, your budget that day and, and, and what kind of deal you're looking for.
[00:38:56] Speaker B: So now we'll switch over to condos.
Well, condos slash townhouses. So we'll start kind of, you know, one bedroom and work down. So this is a one bedroom oceanfront condo in a building called the Grand Cayman Resort. So it is in the Myrtle beach area.
Myrtle Beach.
The downtown Myrtle beach area or within the city limits of Myrtle beach is definitely the best market as far as condos go. I mean it's where the majority of your vacationers are coming, especially in kind of that one, two, three bedroom bedroom range.
So this one here, I mean you got a price point of 168k. This building was just renovated a few years ago.
They also did something called a bulk upfit. So a lot of the units were also renovated too, which there are obviously pros and cons to that. The pro is, of course you've got a unit that's just been renovated. So you've got all the bells and whistles, obviously updated, boring updated paintings, smooth ceilings. Because a lot of these older buildings have, you know, popcorn and stuff like that.
New a kitchen. If I can get over to the pictures of the kitchen.
Yeah, so you've got newer cabinets, tile backsplash, LVP throughout. So this is what we call the shotgun style. So essentially you walk in the front door here and you're straight in the bedroom.
We call it shotgun style because basically you walk in the door, you fire a shotgun and basically hits everybody in the unit because it's just one long straight room.
There are obviously doors separate to the kitchen and the, and the living room. So typically your living room's gonna be ocean front cause that's where people hang out.
Occupancy, you're looking at four to six.
I'm not a huge fan of the two queens in the bedroom. I generally find the king works better than the two queens.
Most people aren't wanting to sleep in the same bedroom as you know, uncle and aunt type thing.
But you've got a Murphy bed, you've got a pull out couch. So they do sleep four to six I think comfortably given, you know you're looking at around 550. Yeah, 550 heated square feet. I think comfortably you can fit four.
But rental income wise on something like this being at 167k now again I've got the clients that absolutely hustle and my top producing client with a one bedroom, she is on track to do 70k this year.
Because these things that they just rent all year round, I mean the one bedrooms they get the, they get the snowbirds and if you've got a unit that stands out, it's easy to keep renting them year round.
But on average, I mean something like this, you should comfortably able to do between 40 and 50k self managing.
A lot of these buildings they have on site rental programs but they're going to take 40% of your income. So not a huge incentive to use the on site rental program.
HOA fees on this one you're looking at 750 bucks a month. But that does include access to all the amenities, all your utilities. So your Internet, cable, water, electricity, it is all included in the HOA fee and as is the insurance.
Now you'll see here that it states that it does also include the HO6 insurance or your contents, which it does.
But a lot of the lenders are not going to accept most of these HO6 policies because they don't meet the minimum threshold. So although they do include the HO6 in some cases, they may still require you to get a supplement policy. You're probably looking at about 50 bucks more a month.
But I mean let's say price point for 170k to have a direct ocean front condo, it's, it's a reasonable price point. I mean this building has got the amenities, the pools, the lazy river, the tiki bar, the Starbucks on site, the restaurant. So it's kind of got everything you need and everything that people looking to stay in condos are looking for.
Anything I missed there Luke?
[00:43:12] Speaker A: No, everything looks good. You've sold in this building before.
[00:43:15] Speaker B: Yes, I have. So one thing with Myrtle beach is most properties in Myrtle beach are probably about 90, 95, 90 to 95% of properties in Myrtle beach, they're not self managed actually, which is actually a really big opportunity. So most properties are actually using the on site rental program. So because they use the rental programs, they, they have standard rates. They pretty much operate like hotels. Someone checks in and they just assign a room based on what's available.
They don't really book them out in advance.
So your income is kind of almost capped because of that, because of the standardized rates and the fact that they do kind of operate on a first come first serve basis type things. So with the rental programs you're looking at 30 to 35k gross and then they're going to take 40k off of that. So this one here for example, most likely is going to be on the rental program. You see. In fact, because I've done, I know this agent pretty well and I know most of his deals are, do operate that well.
This one here, so this is actually one of my listings in a building called the Caribbean Resort or Caribbean as, as I would say.
So this is a, it's a slightly higher caliber oceanfront condo in the sense that it has a, it has a lot more amenities. It's also closer to the downtown area. So as far as walkability, you can walk to all the amenities, you can walk to all the, you know, the arcades, the ripples, believe it or not, the sky wheel, the restaurants, the bars, it's all within walking distance.
This is a one bedroom, one bath. It's currently priced at 230.
Again, it's going to be your shotgun style. Now the HOA here again does include everything roughly the same price, that kind of like 760 price point.
This one does also include your HO6. And I do know in this particular building a lot of the lenders will accept their coverage that they have. So you pretty much know if your HOA fee, your mortgage payment, your property tax, your occupancy tax for actually managing and you're not having to worry about, you know, paying your cleaners, I mean, sorry, your, your electrician, the electric bill, the water bill, your electric Internet bill, it's all included. So it's just, there's a lot less headache I guess when it comes to the, the condos.
But this one, so he put in new LVP4 in. He updated the furniture.
It does have the, the tile in the kitchen, little desk in there, solid surface countertops.
So you clean appliances.
[00:46:00] Speaker A: How long on the market.
[00:46:02] Speaker B: This one we've had it on the market for.
[00:46:05] Speaker A: Where are we?
[00:46:06] Speaker B: 44 days. So month and a half on this one.
[00:46:09] Speaker A: Any action, any showings?
[00:46:11] Speaker B: We've had some showings. We've had a little bit of action. People wanting to come in lower now.
We just haven't been able to come to terms ultimately.
And then into the living room. So again, living room is ocean front, updated furniture. It didn't do a whole lot as far as. So the kitchen is original in this one, which I think is probably hurting it because this is another one of those buildings where it did have the bulk upfit.
So essentially you're competing with units that have brand new kitchens and brand new bathrooms. So I think although it does have the LVP4 and some nicer furniture, your bigger expenses like your, you know, kitchen and bathrooms, because they've not been updated. I think that's probably what's hurting us the most in this one. But I've got a few clients that own in this building.
Income ranging from 40 to 50k.
This guy, I think he's been doing about 35 to 40 again on the lower end just because although his unit does have newer furniture, it doesn't have the. No, the white sparkly kitchen with the quartz countertop and the tile shower and kind of, it's. It's not able to kind of compete with better units, I would say.
[00:47:25] Speaker A: Well, and also we don't know how, you know, everybody has varying levels of how engaged they are with their management.
[00:47:32] Speaker B: And that's it true. You just never know how. How they're managing it versus. Versus somebody El.
But it's a big building. It's got a lot of amenities inside. Now this is all closed off in the, in the off season, so you've always got access to some. Some amenities like heated indoor pools, lazy rivers. And then they've got the big outdoor pool, the hot tubs, the, the bar, the. They've got water slides here. And then this particular building is also directly next door to like a calabash, all you can eat seafood restaurant.
[00:48:04] Speaker A: So never gotta go to what people want on vacation.
[00:48:07] Speaker B: Yeah, exactly, they do. I mean, there's always a line outside the door of that place because there's not many oceanfront restaurants actually in Myrtle Beach.
So on to the next one. So here's more of an example of something that I probably wouldn't recommend.
So definitely a nicer price point. You can definitely make the numbers work. But this one kind of comes down to you know, what the building offers as far as amenities versus the competition in the area. So this one is basically directly next door to a really big resort that's got some really great amenities. And I think when people are looking at condos, they may not necessarily be looking so much at wanting to stay at a certain building, but they're looking at what the unit looks like and what it has to offer. So does it have the things to keep the kids entertained, like the arcades and the.
The lazy rivers and the pools and whatnot?
And also with this one, the financing can be a little bit tricky. It's an older building, so it doesn't perhaps have that wow factor. It doesn't take photos, perhaps as nice as some other buildings just because it's just a gray building.
Definitely not saying the numbers can't work just because the price point is only 135, but just when you're thinking of who the competition are, or the enemy method, if you will.
Yes, you are.
It's easier to make the numbers work because the price point's lower, but you might just not get as booked as some of the other buildings, for example, that are considered a little bit more popular.
Obviously, this unit does need a little bit of work. It's original kind of tile flooring.
But when you're only talking 500 square feet, there's only really so much money you can spend to get these in absolute tip top shape.
And I think, if I remember correctly, this unit is. So it is on the lower floor, so your views are likely to be obstructed too. And it's not direct ocean front, which again, looking at the enemy method, direct ocean front is always going to kind of come top of the list. I generally find people are willing to spend a little bit more money to go oceanfront versus kind of side view or a low floor that doesn't have a view.
[00:50:25] Speaker A: Let me ask you a personal question. If I. If you're buying a condo.
Yes. Would you even consider one that's not oceanfront?
[00:50:33] Speaker B: I personally wouldn't know.
[00:50:35] Speaker A: I agree.
[00:50:36] Speaker B: I just, I think ultimately if you're somebody looking on an Airbnb and you've got the one that has the direct ocean views. Because if you're going to stay in a condo, that's usually why you're going to stay in the condo. So you can wake up, sit on the balcony and overlook the Atlantic Ocean versus, you know, the building next to you or whatever it is the side view is looking at. So I think it's worth paying that Little bit more to get the ocean view because you're going to see the returns on the income, I think, and the numbers show the same as far as, you know, rental comps.
[00:51:10] Speaker A: Yeah, I mean really it's a hotel alternative with these condos. Except for, you know, you got better, you got a kitchen, you got a washer and dryer. But there's a reason, you know, it was the developer situation with the city and the county, et cetera. The county said, hey, we can make more money with these condos than we can a hotel, so let's do condos.
[00:51:27] Speaker B: And that's, that's exactly what they, that's why they call them condotels. So pretty much almost every single high rise condo building in Myrtle beach that's oceanfront, is a condotel.
[00:51:39] Speaker A: Can we make more property tax if they're individually owned or if they're all owned by one person? Oh, individual. Sweet. Let's do that.
[00:51:46] Speaker B: Yeah, exactly.
Especially with the, with the higher tax bracket of the investment versus primary as well.
[00:51:53] Speaker A: Right.
[00:51:56] Speaker B: Okay, so this is a three bedroom, which.
[00:51:59] Speaker A: Hold on, I'm gonna. Sorry, I'm cutting you off again.
[00:52:02] Speaker B: Go ahead, go ahead.
[00:52:03] Speaker A: That is a beautiful thing and it does, you know, because of that, it allows the average Joe that's looking to be, you know, dip his toe or her toe into investing to get involved.
And it's a wonderful thing that you can buy this, this unit that otherwise would be a hot, you know, basically a hotel room and you can make it your own private little sanctuary. It's one, it's a wonderful time.
[00:52:25] Speaker B: No, I think it's, if you, if you're a, a new investor looking to kind of get your feet wet in the investment world, especially because a lot of our clients do self manage. I think the one, the one bedroom product, it's a, it's a great product to start with. I mean, entry point versus returns, percentage wise, they actually have the highest returns of any other condo. Bedroom size.
I mean, it would make more sense to almost have three one bedrooms than one three bedroom. In fact, it a hundred percent would.
But obviously not everybody wants a one bedroom. So here we have a three bedroom. So again, I've gone back to the Caribbean resort. The reason being is because I wanted to show this actual unit. So this is a corner unit in this building.
Another reason why this particular building is popular because it's the very last building in the downtown Myrtle beach area before you get to like Millionaires Row, which is basically a bunch of four, five, six million dollars beach houses that are not str friendly. They're you know, Mark Zuckerberg's beach house that he uses from time to time. Not actually Mark Zuckerberg, but you know what I mean. People don't generally live in the beach houses. So that part of the beach is a lot less busy than perhaps bang smack in the middle of downtown. So for people that do want to stay in a condo but might not want to deal with the hustle and bustle of the, the absolute downtown area and how busy the beach gets, you can walk outside of this building, walk a couple of minutes down the beach and it's going to be a lot quieter.
But at the same time you are still in the downtown area.
But this is a three bedroom, two bath corner unit priced at $489,900.
It's been on the market for 20 days. These units do generally go pretty quickly just because they, of course there are only so many corner units in a building.
They usually have the better views, the bigger balconies. HOA fear fee in this building is pretty steep. So you're looking at almost $2,000. Again, it does include everything.
[00:54:29] Speaker A: Is that because it's a bigger unit or is it always that high?
[00:54:32] Speaker B: It's because it's a bigger unit. So. And the corner units are generally priced higher than for example a three bedroom that, that's in the middle of the building.
So your middle unit's going to be right about 15, 1600amonth in this building versus this being a corner unit. It's, it's priced higher.
[00:54:52] Speaker A: I got you grand a month is pretty steep.
[00:54:55] Speaker B: Yeah, it is pretty steep. I mean 24 grand a year on, on your HOA fees.
But that being said, your price point four eight nine nine.
[00:55:05] Speaker A: Yeah. And your.
[00:55:07] Speaker B: Yeah, go ahead.
[00:55:08] Speaker A: The insurance is included in there. If this was a single family home, you know, like what, like a three bedroom single family home. What's the insurance?
[00:55:16] Speaker B: Yeah, I mean for a three bedroom single family you're probably looking at, you know, five grand a year, probably just on insurance.
[00:55:22] Speaker A: Yeah.
[00:55:25] Speaker B: And then your electric can quickly get up there. But again, it is pretty steep. But you're not having to deal with poor, poor maintenance crews and handyman and things like that.
As far as your, your common areas, you're only kind of responsible for the unit. But this is a corner unit that was on the bulk upfit. So all new furniture, LVP flooring, direct ocean front bedroom here, which actually has stunning views from the bedroom.
The way the actual unit is kind of angled, you can be in the kitchen. But you, you don't feel completely segregated. Like some of the one bedrooms where it's a separate area, it flows kind of naturally into the living room. So if you're a larger group, it's a lot more open to still be involved, be cooking dinner or whatever and still be part of the group in the living room. This is your ocean front bedroom. So you've got floor to ceiling windows overlooking the Atlantic Ocean. There's also access to the balcony which because it is a corner unit you do have the oversized balcony.
And then you're gonna have two more bedrooms on the back of the property. But they are pretty good sized bedroom. So you could comfortably fit like 12 people in this unit.
So here you've got two queens in the bedroom and it's still, it doesn't feel cramped in there. It's a good size room, has a separate little balcony off of this bedroom.
And then here you've got another queen size room here.
And then once you kind of factor in a sleeping sofa, say fit 10 to 12 people in, in this style room rental income you're looking at like up to 100k on this prop on this type of unit.
Again I have seen units do more but kind of being More conservative like 90 to 100k is what you should be expecting to do if you're self managing a three bedroom oceanfront condo.
So this is a four bedroom, four bath condo in North Myrtle Beach. So I'm not a North Myrtle Beach. The numbers don't actually generally tend to make as much sense with the one to three bedroom units and it's. The price points tend to be higher.
But the HOAs also don't include. The HOA fees are about the same price but they don't usually include like your electricity in, in a lot of the buildings.
So you're going to be out of pocket for your electric which is typically your highest utility.
But this is a four bedroom, four bath direct ocean front building in a, in Crescent Shores.
This one has been on the market for 111 days. So again kind of creeping up there right about that four month mark.
But this doesn't have that kind of resort condo type feeling. So there's no front desk in there. There's, there's not as many amenities but you've still got your pool and your hot tub and you, you know you're grilling out area. But it kind of feels more like a condo where you could, you could also live there and feel comfortable but a little bit dated inside. I mean this, this Whole mirror thing was something they did, you know, 20, 30 years ago to make the unit feel bigger. And also so if you look in the mirror but you're not necessarily facing the ocean, you typically, you can still have an ocean view of anywhere in the unit. So that's kind of why they did that mirror thing. I'm not a big fan of it. I think it's. It just looks old and dated now. But you can kind of see with this particular unit that they've not done a whole lot of upgrades. But as far as rental income on these, they do do really well and it's likely because there aren't as many four bedroom condos in, in any of the market. There's a whole bunch of one, two and three bedrooms but there's not a ton of four bedrooms.
So you're always still got groups of people that want to be oceanfront price per night is going to be a little bit cheaper than perhaps a four bedroom single family home.
But rental income wise these do between like 120 and 130. They are going to be more seasonal just because they are larger bedrooms. But of course the income is there to be made in, in the season.
And then so you kind of see as far as your amenities, you still got a pretty good sized pool. You've got a couple of hot tubs, grilling area.
So this is a really good option in the north middle beach end. If, if you do want to have a larger sized condo, would they pay for it?
They paid 3, 366 back in 2019. So this is. That was pretty much before we had the big push of, of property prices during the COVID times.
[01:00:25] Speaker A: Wait a minute, there's a sale on March of 24?
[01:00:30] Speaker B: Oh yeah, I didn't see that one there. That's. I was, I was actually looking at that one thinking it was the current listing.
[01:00:35] Speaker A: I did too. I figured that was the listing. Yeah.
[01:00:37] Speaker B: So yeah, it was actually sold in 2024 for 670.
[01:00:44] Speaker A: And these things have been wrong before. But that means this guy's already selling it for less than he paid.
[01:00:50] Speaker B: If it's true, he's currently listing it at 679. So he's basically trying to get 10k more. But even so, I mean. Yeah, but your HOA is 1500 per month.
This only it's not going to include all of your utilities because it's generally your resort style condos that are going to include everything. So your condotels.
So this is, it's going to include your insurance Your water, your trash, but it's not going to include your electricity.
[01:01:19] Speaker A: So 15. It's $500 a month cheaper than the three bedroom in the Caribbean.
[01:01:23] Speaker B: Correct.
[01:01:23] Speaker A: But doesn't offer as much stuff.
[01:01:25] Speaker B: Yeah. So you, basically the only additional thing you're coming out of is your electricity. But it's very unlikely for you to be spending 500 bucks a month in electricity. And you're probably looking at a couple of hundred bucks in the season for your electricity on something like this and then onto the next one. So this is, this is more of an example of probably what not to buy. Now this is considered the.
If you just want to buy something purely out of ego and you want to, you want to claim to be in the best building in Myrtle beach, then this is the listing. So this is in North Beach Towers, which is the most exclusive condo building in the area.
A lot of people own in here, you know, as second homes or as I say, just to have kind of bragging rights of owning in this building. It does have the top producing condos in Myrtle beach, but it also has the price heist tag in Myrtle Beach.
So this is a four bedroom, three and a half bath. It's priced at 1.7. And I mean there is a market for everybody ultimately, but it's HOA fee, $2261 per month.
It is going to include pretty much everything except again, your electricity. I don't know for whatever reason why, but North Myrtle beach just does not seem to include electricity in the HOA fee.
Rental income on something like this, you're looking at up to, I mean the highest I've ever seen. And again, this is like the top, top kind of penthouse suite type thing. But you're looking 200 on something like that for a standard four bedroom. 150. 160.
But the reason why I say I wouldn't suggest it unless it's for kind of personal reasons because you just want to own in this building, is it just would make a lot more sense to buy something like this priced at 6 80.
But again, you negotiate the price down, let's say to 650 with rental income of up to 120, 130.
It just makes a lot more sense from an investment standpoint to pay a million dollars less. Your overheads are going to be less, your mortgage fee is going to be less, yet your income differential is not that big.
So that's kind of why I don't recommend the luxury condo market. It's just because your income differential Is really not there to make it make sense, in my opinion.
What are your thoughts on that, Luke?
[01:03:57] Speaker A: Yeah, I mean, this is.
There's a. There's a product for every seller. Every buyer is exactly right. $1.7 million. But, you know, are we dabbling in an area where maybe we don't rent this thing? You know, I mean, when you get to that point, are we. Because it's like you want to be a baller, you know?
[01:04:17] Speaker B: Yeah.
[01:04:18] Speaker A: I mean.
[01:04:18] Speaker B: I mean, yes, this is. I actually met a guy once who. Who bought one. He was. He was an investor, but it wasn't to rent. It was purely just because he wanted in the best building in Myrtle Beach. So he bought. He bought a unit in this building. I mean, you can see obviously, with the finishes, they.
It's. It's something that you could comfortably live in.
[01:04:38] Speaker A: It's beautiful.
[01:04:39] Speaker B: It's. It's. It's a. It's a much higher kind of standard than a lot of the other condo buildings. But again, is it. Is it worth a million dollars more? I mean, if you want to live at the beach. Absolutely. And have something that is str. Friendly to perhaps offset the income, to offset your expenses. Sorry. A little bit, then it works great for something like that. But if your goal as an investor is purely cash flow, then this wouldn't be the one that I would personally recommend.
[01:05:09] Speaker A: The agent hit count and client hit count is catching my eye. The agent hit is always like 5, 10 times higher than the client.
I don't know. I mean, people are really into data. That definitely caught my eye. Is that normal?
[01:05:24] Speaker B: I mean, probably most likely it's the amount of times it's been, you know, sent out to people. I think there's not a huge market for this type of property. Again, I think the type of person looking for something like this is your kind of somebody who's looking to own either a second home or an oceanfront condo that doesn't want to deal with the. The hassle of, again, dealing with a pool cleaner and handyman of just the. The upkeep that a single family home comes with. Obviously, with a condo, you're only really concerned of the unit, and the HOA is taking care of everything else. So I think most likely with. With this type of product, that's probably the reason for that.
[01:06:05] Speaker A: Yeah.
[01:06:07] Speaker B: Now, this one here is really interesting because if you look at that client count, it's three.
Now, this product actually is. To me, this product is awesome.
And the reason why the hit count on this one is three is because this particular product, these are brand new true townhomes.
So you've got a five bedroom, three and a half bath fee simple townhome, which essentially means you own the land that comes with it as well for $410,000, which is a really nice price point for something that you own all of it of.
I mean, to me it kind of competes with the residential market more than it does the condo market.
But the reason why there's such a low client hit count on this is because when most people are looking up the condos or investment properties that are condos, you pretty much focus in ocean front. But this product is like three and a half miles back from the ocean.
So I think it's probably overlooked by probably almost every single agent on the market. And actually the only reason why I came across this product, which is why it's on my list, is because the builder actually called me up because they knew I was with the short term shop. He knew I specialized in working with investors.
So he basically called me up and said, hey, can you come out and look at my product?
It's a nice product, it's priced well. He thought it competed with the residential market of North Myrtle Beach. So I went out and met with him and after I viewed it, I absolutely agreed with him. And, and the reason why, first of all, I do want to say that a guy bought five of these in there. So this development is still under construction. There's about 20 of them that are finished right now, and there's going to be about 70 total. Now they're going to have, you know, the pool, they're going to have a pickleball court.
Is thinking about adding either a gym or a golf simulator. Every single unit of these does overlook a retention pond.
So kind of, if you look at the overall kind of map of the area now, this is only partial, but essentially you've got the townhomes. I'm getting a full screen. So you've kind of got the town homes and then each one has a retention pond in between it. So this is kind of, if you look here, this is kind of the pool clubhouse thing.
Again, it's not finished yet, so keep that in mind when I kind of discuss some numbers with you. You can see the beach in the distance, but this area here is Barefoot Landing, which is kind of the main tourist attraction of North Myrtle Beach. You've got three really big golf courses there. Barefoot Landing is also where you've got a bunch of bars, restaurants, breweries, things for the kids to do, like Arcades, stuff like that. That's about five minute drive on a golf cart. The beach is about 10 minutes drive on a golf cart.
But a guy just bought 5 of them and he's already doing with his 5 bedroom like 85k gross rental income with a 5 bedroom property in a development that's not even finished yet. I mean the pool is only just opened.
So my thinking with eases is that, that they are essentially able to compete with the properties that are closer to the beach. But you know, they have the million dollar price tag attached to them. So the ADR or the average daily rate is obviously much higher than the numbers you need to do on something like this in order to make it work, just because your price tags it 410. But also this builder, he does also offer an option to where he'll sell them fully furnished. So everything in there, your silverware, your plates, your linens, your towels, all brand new, he offers that option too because he's basically, as I say, he designed this product to be an STR to compete with the properties that are kind of Easter 17. So I think these products do really well with golfers. Number one, because you are in an area that's right next to some golf courses, you're also standing out to the market that as I say, they don't want to pay 1500 bucks, $2000 a night for a five bedroom race raised beach house. Whereas something like this, where you may be talking 7, $800 or you know, just spitballing a number out there per night, half the price just because the actual product is half the price and there's nothing else like this in the area. So I think this is why these do so well.
It's just, it's unfortunate that in our mls, townhomes and condos are within the same category.
So even though I would consider this product to be, you know, more similar to a single family home because it is fee simple and because you do own the land and they do have like a garden. So just to kind of give you an idea of the inside, I mean they're, they're really nicely finished. Now this is just an example of one of them. But it's got a big common area space, it's got a big kitchen, all stainless appliances.
This is kind of an idea of the furniture you actually get when you, when you buy these.
The builder is a bit of a risk, right?
[01:11:23] Speaker A: Like, I mean, I hate to use the word risk, but it is a bit of a, you're out going out on a limb A little bit, A little bit.
[01:11:28] Speaker B: I mean, being that you are a little bit further away from the beach,
[01:11:32] Speaker A: but you could rent it for 120 bucks a night if you had to.
[01:11:35] Speaker B: Right, right. But I mean based on the data of what this other guy is already doing in there that that bought five, I think it kind of shows and proves that the product working.
Like my wife and I, we have a condo on a golf course, two bedroom condo on a golf course. It's about the same distance to the beach, but I mean we are pretty much 100% occupancy throughout the summer. Of course we drop off in the off season because at that point people are going to look closer to the beach.
But you know, we still cash flow on hours because there's still a market for the people that maybe don't want to spend 4, 5, 6, $700 a night for an oceanfront condo versus like $300 a night for, for what we offer, for example. And I think this is kind of the equivalent to that, but in the kind of single family home type mark str market.
[01:12:31] Speaker A: Love it. All right, listen, I gotta jump off.
How do we contact you?
[01:12:37] Speaker B: So you can reach me at my cell phone which is 843-957-0158 or you can reach me at my email which is
[email protected]
[01:12:50] Speaker A: I'm
[email protected] and we appreciate you short short term shopping and find us every Thursday wherever you listen to podcasts and we'll see you next time. Thank you, Bradley.
[01:13:03] Speaker B: Appreciate it.
