Purchasing an Airbnb Myrtle Beach SC could be an excellent investment, as oceanfront condos may be considered second residences.
Table of contents
- South Carolina Real Estate Market
- Myrtle Beach SC Real Estate Market Data
- Investing in Airbnb Myrtle Beach SC: Pros and Cons
- How Can Mashvisor Help?
- Conclusion
If you are thinking of buying an investment property in Myrtle Beach, you will find a lot of residences in this city. However, not all homes are represented equally, and some should be strictly avoided.
Here is more information regarding Airbnb Myrtle Beach SC, as well as a more detailed guide on what you can expect from Myrtle Beach SC Airbnb. Let’s get started.
South Carolina Real Estate Market
With a beautiful sandy beach and an island-dotted coastline, it’s no surprise that South Carolina has a thriving tourism economy. South Carolina has also been a popular destination for seniors, couples, and anybody looking for a bit of Southern charm in recent years.
South Carolina’s landscape rises further inland to join the rising Appalachian Mountains. Beach villages such as Hilton Head and Myrtle Beach are among the major cities, as are more urban locations such as Charleston, Columbia, and Greenville.
The Palmetto State is famous for its Southern cuisine, including mustard-spiked barbecue, low-country boils, and shrimp and grits. Aside from its culinary heritage, South Carolina was the first state to hold an opera and was the birthplace of several dance trends. If you’re thinking about buying or selling a home in South Carolina, the forecasts and numbers we have below will help you make an informed decision.
Here are the latest real estate market stats for the state of South Carolina, based on Mashvisor data:
- Number of Listings for Sale: 8,315
- Median Property Price: $448,980
- Average Price per Square Foot: $267
- Days on Market: 82
- Number of Traditional Listings: 4,036
- Monthly Traditional Rental Income: $1,568
- Traditional Cash on Cash Return: 1.50%
- Traditional Cap Rate: 1.54%
- Price to Rent Ratio: 24
- Number of Airbnb Listings: 11,709
- Monthly Airbnb Rental Income: $2,758
- Airbnb Cash on Cash Return: 3.04%
- Airbnb Cap Rate: 3.13%
- Airbnb Daily Rate: $165
- Airbnb Occupancy Rate: 54%
- Walk Score: 43
The Market Could Be Cooling Off
Many (if not all) cities in South Carolina face the possibility of becoming a buyer’s market. This develops when there are too many properties for sale that outnumber the demand, giving you the benefit of having less competition.
Surges in Major Cities
As more workplaces reopen and the economy recovers from the impacts of the pandemic, property values in major cities are expected to rise again this year. It means that rental properties and homes for sale in large cities are expected to profit in the long run as more individuals return to pre-pandemic living conditions.
Myrtle Beach SC Real Estate Market Data
All of the data below is provided by Mashvisor:
- Number of Airbnb Listings: 1,565
- Monthly Airbnb Rental Income: $2,444
- Airbnb Cash on Cash Return: 2.77%
- Airbnb Cap Rate: 2.86%
- Airbnb Daily Rate: $143
- Airbnb Occupancy Rate: 54%
- Number of Listings for Sale: 1,320
- Median Property Price: $370,987
- Average Price per Square Foot: $229
- Days on Market: 80
- Walk Score: 76
Investing in Airbnb Myrtle Beach SC: Pros and Cons
Assume you want to invest in Airbnb Myrtle Beach SC to rent out. In that situation, you might be pleasantly surprised by the enormous monthly rental revenue. Myrtle Beach has become a famous tourist destination for individuals, couples, and families from all over the country, and people require lodging while on holiday.
However, first, let’s see some of the pros and cons you could encounter if you opt for this city.
Airbnb in Myrtle Beach SC: Pros
First, we will focus on some Airbnb Myrtle Beach SC pros and why you should consider it.
1. Staying on the Coast Is Affordable
If you’re considering investing in Airbnb rentals in Myrtle Beach SC, now would be the opportunity. You are likely to locate a reasonably priced house, and if you invest in it, you will notice that the property’s value increases year after year. If you decide to sell it, you will almost certainly make a profit.
Nevertheless, it is better to start your journey as soon as possible. When inventory levels rise at the end of every month, this is the ideal time to look. If you are unfamiliar with the area, you should give yourself a couple of months to find the ideal location.
Learn More: How to Find the Best Area for Airbnb Investment
2. Low HOA and Taxes
HOA rates in the Myrtle Beach area are far lower than in other states, especially considering available resources. Taxes operate in the same manner. For example, taxes on high-risk Myrtle Beach investment property (condominium and oceanfront assets) are bigger.
Nonetheless, South Carolina has generally lower taxes, which is encouraging. Property tax is roughly 0.5% while the national average is 1.1%. As a result, the property tax rates will not disturb you too much. You will also not have to spend $40–50 for yearly inspection fees here.
3. Large Rental Rates
If you opt for a South Carolina investment property in Myrtle Beach, you’ll have a huge potential to produce revenue during the warmer seasons when it welcomes millions of visitors. Tourists come to the beaches in large numbers, and they prefer to stay in facilities that provide all of the comforts of home, giving vacation rentals a competitive advantage.
Therefore, if you have an Airbnb near Myrtle Beach SC, and rent it out, you will undoubtedly receive a regular stream of visitors, especially during the holiday periods. Rental prices in Myrtle Beach are rising due to increased demand in this coastal region.
4. Excellent Community Services
The last subject you should be concerned about Airbnb Myrtle Beach SC is what your guests can do in the area. Myrtle Beach offers the most mini golf courses per square mile of any city in the world. There are 80 championship golf courses along the 60 miles of coastline to keep you entertained. Additionally, Myrtle Beach hosts about 600 fine arts activities every year. South Carolina also has a plethora of casinos.
5. Year-Round Beautiful Weather
Every year, about 14 million tourists visit Myrtle Beach. You’ll have no issue making money because the summertime is so popular with tourists. Your revenue-generating possibilities will expand during the summer.
Summer is followed by a mild winter, yet reservations will continue to come in due to locals who take advantage of the lower pricing during the off-season. Hurricanes rarely hit Myrtle Beach. Guests also won’t be dealing with the unbearable heat. They can fully enjoy any season, from springtime to Christmas, without dealing with harsh weather like the ones seen in the north or south.
Airbnb Myrtle Beach SC: Cons
Now that we have covered several advantages of investing in Airbnb Myrtle Beach SC let’s see some minor drawbacks you should consider.
1. Competition
Myrtle Beach’s reputation is expanding, and so is its demand. As a result, home prices will rise. Prices are only stable to a certain level due to the recent economic situation. According to specialists, home prices are expected to rise further in the following months. If you want to purchase a beachfront house, get an early start on the competition.
2. Management of Security
If you acquire a vacation rental in Myrtle Beach, estimate your actual return to compensate for the significant expense you anticipate spending on property management and security. With the rising popularity of this area, crime rates have risen, but keep in mind that you will attract more guests if your house is secure. As a result, think of the security system as a long-term investment.
How Can Mashvisor Help?
You may have already decided to invest in Airbnb Myrtle Beach SC at this point. How can you locate a property that has the potential to generate a substantial passive income stream? Mashvisor is here to help you with Airbnb analytics. Let’s see some of the tools you can use and get the best results for your investment strategy.
Property Finder
Mashvisor’s Property Finder is a web-based tool that can assist you in finding properties for sale. It’s simple to use and gathers all available listings in your preferred area, allowing you to sort through the results to discover the perfect listing. The following metrics can be used to filter the results:
- Number of bedrooms
- Number of bathrooms
- Property type
- Property size
- Location
- Optimal rental strategy
- Property price
If you are still searching for an Airbnb Myrtle Beach SC property, Mashvisor’s Property Finder will present to you homes for sale in the area that have high potential for your selected rental strategy.
Investment Property Calculator
Our Investment Property Calculator is dependable since we use data from reputable sources such as Airbnb and other short-term rental sites. We also update our data regularly to ensure you’re getting the most up-to-date predictions. If you want to customize the estimates to meet your specific need, you can alter essential variables such as rental income, occupancy rate, and monthly expenses.
Our Airbnb calculator is unique in that it includes estimates for both traditional and short-term rental strategies, allowing you to choose the best one for you and the property you are looking at. Using this tool, investors can obtain estimates for the following metrics:
- Cash flow
- Cap rate
- Airbnb occupancy rate
- Rental income
- Cash on cash return
You may use Mashvisor’s Investment Property Calculator to estimate the cash flow, cash on cash return, cap rate, and investment payback of your potential Airbnb Myrtle Beach SC property.
Real Estate Heatmap
While conducting your market and property research, you may want to investigate how other neighborhoods score if you find locations that perform better. Mashvisor’s Real Estate Heatmap is the perfect tool for this.
This tool assists you in conducting a neighborhood study of any area in the US, which is an important element of market analysis. It was designed to help real estate investors in focusing on places with the highest potential for return on investment. To calculate how much cash flow a neighborhood will produce, the Heatmap examines the following data:
- Occupancy rate
- Cash on cash return
- Rental income
- Listing price
The tool’s outcomes are color-coded to help you understand them. Green neighborhoods are performing well, whereas red areas are not optimal. Neutral communities are represented by yellow and orange.
Learn more about our product to discover other ways we can help you.
Conclusion
When investing in Airbnb Myrtle Beach SC, keep in mind that they tend to grow with time. You’d be busy trying to discover the variety of services that Myrtle Beach provides in any other coastal or resort location.
Regardless of the numerous options available to you, pricing, interest rate, and demand must be considered before deciding. It is advisable to conduct a thorough study. Clear up any confusion you may have, and don’t be afraid to seek professional help when necessary. It will help you make a more educated choice.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.