Beach Haven, North Myrtle Beach – Investment & Rental Performance 2023–24

Property Overview: Beach Haven is a second-row condo complex in Cherry Grove (North Myrtle Beach), a short walk to the beach and fishing pier. It comprises primarily spacious 4-bedroom, 4-bath two-story units (~2,200 sq ft). Some smaller units exist (e.g. Beach Haven 39 is a 1BR/1BA “studio” with one queen bed), but the core offering is 4BR/4BA villas with ample sleeping capacity. These villas feature ocean views from upper balconies, full kitchens, and are non-smoking; pets are generally disallowed in at least some units. There is no elevator or pool on-site; parking (up to ~4–5 spots) is available per villa. HOA dues run roughly $234–$250/quarter (≈$936–$1,000/year), covering building insurance, common areas, etc.

Unit Types & Capacity

• 4-Bedroom Units: The standard Beach Haven unit sleeps ~16 (4 King beds, additional bunks). These large villas command the highest nightly rates but also incur higher furnishing and maintenance costs.

• 1-Bedroom/Studio Units: Smaller units (e.g. BH 39/41) sleep 2 and rent like a typical ocean-view studio. Their ADRs are far lower (often <$150 off-peak) and occupancy more modest. Beach Haven does not offer 2BR or 3BR units to our knowledge.

Investors should note Beach Haven’s mix leans toward large group rentals. The 4BR units allow premium rates per night and multi-family/large-group demand, whereas any 1BR units provide supplemental income but much smaller revenue.

Market Demand & Seasonality

North Myrtle Beach is a highly seasonal market. Current data show overall North Myrtle Beach STR occupancy around 57–58%. Peak demand is mid-summer (July–Aug), while late fall/winter (Dec–Feb) are slow. For example, Airbtics data report July as the best month (highest bookings) and January the lowest. A summary:

• Peak Summer (Jun–Aug): Occupancy often ~80–90%, ADRs $300–$400+ (per night for a 4BR). Monthly host revenue can exceed $5,300.

• Shoulder Seasons (Spring, Fall): Occupancy ~50–60%, ADRs $200–300. Revenue ~$2,500–3,000/month.

• Off-Season (Nov–Feb): Occupancy ~20–30%, ADRs $100–150. Monthly revenue ~$1,800 (lowest months).

These patterns align with general Myrtle Beach trends. Averages for North Myrtle Beach show an ADR ≈$341 and ~57% occupancy. (Airbtics similarly finds median Airbnb ADR ~$190 with 58% occupancy – lower because many small listings pull down the median.) Beach Haven’s 4BR units, given their size and amenities, typically achieve well above median rates (often $300+ even in shoulder season).

(Data: Airbtics North Myrtle Beach Aug’23–Jul’24).

Rental Revenue & Occupancy by Unit Type

4BR Villas: These can command ADRs typically $250–600 depending on season. For example, well-appointed 4BR Beach Haven units often list ~$500–600 in peak summer. With ~50–80 nights booked (off-season occupancy ~20%) up to 250–270 nights (peak summer), gross income can reach roughly $60k–80k+ per year (booking ~200 nights at an average rate ≈$300–400). (For context, the average NMB STR earned ~$34.9k/yr across all unit types, so large 4BR units typically exceed that.) Occupancy for these large units tends to exceed the market average during peak months, since families/golfers/bookings prefer multiple-bedroom condos in Cherry Grove.

1BR/Studio Units: ADRs are much lower (~$100–150 summer, ~$50 off-season). Even at higher occupancy, annual revenue is modest (e.g. 120–180 nights at ~$100 = ~$12–18k). These smaller units provide supplemental income but have proportionally higher per-guest expenses.

Key Market Stats: NMB-wide listings book ~212 nights/yr (58% occupancy). AirDNA reports average annual revenue ~$34.9k. Given that, investors can expect a Beach Haven 4BR, if well-managed, to perform above these averages, especially in peak months.

Nightly Rates & Operating Expenses

• Nightly Rates: Airbnb data show median NMB rates about $190/night. However, Beach Haven 4BR ADRs typically far exceed that due to high capacity and modern finishes. Owners report $300+ (often $400–500) per night in summer, dropping to $200–250 in spring/fall, and $100–150 in winter. By contrast, BH studio units list ~$25–40 per night (per [11]).

• Cleaning & Turnover: Expect cleaning fees ~$100–150 for a 4BR cleanup; industry data list $116 average for a 3BR and $333 for 5+BR. Budget for cleaning after each stay.

• Property Management: If outsourced, professional management typically charges 10–30% of gross rent (often ~20%). Some investors self-manage to save fees (especially if local), but must handle guest communication, cleaning coordination, etc.

• Other Expenses: Utilities (electricity, water/TV/Internet) and routine maintenance can be significant. Hosts often allocate up to ~40–50% of gross income to cleaning, utilities, upkeep and reserves. For example, rules of thumb say keep expenses under 50% of rental income. Add in property taxes and insurance (SC mortgage insurance & taxes roughly 1.5% of value = ~$7.5k/year on a $500k condo), plus any HOA fees (~$1k/year).

Expense Summary: A broad rule is 35–50% of gross revenue will go to operating expenses (cleaning, utilities, repairs, HOA, insurance) plus management fees. Net cash flow (pre-mortgage) for a fully managed Beach Haven villa often falls around 5–6% of revenue (i.e. ~$3k–4k/mo on $70k gross).

ROI & Cap Rate (With & Without Financing)

Capitalization (Cap) Rate: According to Vacasa’s 2025 market report, North Myrtle Beach condos yield a ~8.10% gross cap rate (gross rental income ÷ property price). In practice, after ~40%+ expenses, net cap rates for a Beach Haven condo would be closer to 4–6%.

Without Financing (All-Cash): An all-cash purchase would generate net income ≈5–6% of purchase price. E.g. a $500k unit with $70k gross rent might yield $30–35k net, implying ~6–7% net ROI. This is slightly lower than many residential investments but reflects the risks of seasonality and higher turnover costs in STRs.

With Financing (Leveraged): Using a loan (e.g. 75–80% LTV) can boost cash-on-cash returns but also adds interest costs. For instance, on a $500k purchase with $100k down, a 7% 30-year mortgage costs $32k/year. If gross rent $70k and expenses 45% ($31k), net before debt ~$39k, then after debt ~$7k. That’s 7% cash-on-cash on $100k equity. Slighly higher rates or lower bookings can reduce or reverse cash flow. In short, financing yields low single-digit cash flows but concentrates equity (often >10% CoC return if occupancy/ADR hold up). (Exact ROI depends on loan terms, occupancy, and expense control.)

Example Metrics: Vacasa’s cap-rate implies a $360k median NMB condo, $27.6k annual revenue. Beach Haven’s higher-end units (~$500k) targeting $70k gross suggest similar gross yield. Leveraged return could range ~5–15% CoC depending on leverage and market conditions.

Guest Reviews & Reputation

Beach Haven rentals enjoy excellent guest ratings. For example, a VRBO listing for “Beach Haven 2” shows a 10/10 “Exceptional” review score. Similar Cherry Grove properties typically run 4.8–5.0 stars on Airbnb and 9–10/10 on VRBO (guests praise location, spaciousness and amenities). Booking.com is less common for these condos, but overall the guest satisfaction trend is very positive. High reviews support premium nightly rates and strong repeat bookings.

HOA Fees, Rental Policies & Owner Restrictions

• HOA Fees: As noted, expect roughly $900–1,000/year (paid quarterly). This covers exterior maintenance, insurance, landscaping, etc. Some fees can rise with time or as assessments.

• Inclusions: Rentals generally include basic utilities, water/sewer, high-speed Internet, washer/dryer, and often bed linens/towels (e.g. Beach Haven 2 advertises “Linens and Departure Maid Service Included”). Owners must supply furniture and appliances.

• Rental Policies: Typical requirements include: renter age ≥24 (ID verification), signed rental agreement, check-in/out times, no smoking or parties. Cancellation/refund rules vary by manager. Annual minimum-occupancy rules or local permits are lenient in North Myrtle; however, all listings must register or display a rental license number if mandated (currently low enforcement in NMB).

• Pets: Policies vary by unit. Beach Haven 1 explicitly forbids pets. Beach Haven 2 (VRBO) allows up to 2 dogs (≤50 lbs) for a total fee (e.g. $150). Owners should verify rules and HOA restrictions before permitting pets.

• Other Notes: There is no pool or elevator at Beach Haven, so marketing should focus on beach access and space rather than on-site amenities. Owners should also secure appropriate landlord insurance and understand SC short-term rental tax rules (6% state occupancy tax + local taxes).

Financing & Investment Strategies

• 1031 Exchange: Beach Haven condos qualify as “like-kind” investment property. A 1031 exchange can defer capital gains if you reinvest proceeds into another rental property. Per IRS “safe harbor” for vacation homes, you must rent the property out (≥14 days/yr) and limit personal use (≤14 days/yr) for the first two years. Rental rates must be fair-market during that time. In practice, an investor could sell another investment property and acquire Beach Haven via 1031, then treat it as an income property (e.g. list it on Airbnb/VRBO with limited personal stays).

• Retirement Funds (401k/IRA): You can use a self-directed IRA or solo 401(k) to buy vacation rentals. This requires a specialized custodian; the retirement account must purchase the property in cash, and all expenses (mortgage, HOA, maintenance) must be paid from the account. Crucially, you (or family) cannot personally use the property (no “vacation” stays). This strategy offers tax-deferred growth, but is complex (trustee fees, UBIT taxes if financed). Given strict IRS rules, consult a specialist before proceeding.

• Self-Management vs Professional: Owners often manage Beach Haven properties themselves to save the 15–30% management fee, especially if local. However, self-managing requires time (guest communication, cleaning oversight, dynamic pricing) and carries risk (vacancies, guest issues). As a rule of thumb, only self-manage if you value the tax write-offs or will occupy part-time; otherwise, budget ~20% of gross for a reliable property manager.

• Financing Nuances: Traditional mortgage lenders view STRs cautiously. In practice, financing may be obtained through second-home loans (10–30% down) or investment property loans (often 25–30% down with higher rates). Some investors use Home Equity Line of Credit (HELOC) on a primary home to fund a STR purchase. Interest rates as of 2024 range ~6–7% for these loans (compare to ~4–5% on primary mortgages). Higher leverage boosts cash-ROI but reduces monthly cash flow.

Comparison with Other Beachfront Condos

Beach Haven’s second-row Cherry Grove location commands slightly less premium than fully oceanfront complexes (e.g. North Beach Resort, Bay Watch Resort, Knights Key) but has lower purchase prices. All these properties share North Myrtle’s strong summer tourism. Notably, Vacasa highlights that “Atlantic-facing condos are extremely popular” in NMB, prized for seaside pools, hot tubs and private beach access. Beach Haven, being just across the boulevard, offers beach access and ocean views without an on-site pool. In terms of cap rates, Beach Haven aligns with the ~8% NMB average, which is competitive with similar Grand Strand resorts. Investors should compare occupancy and ADR: e.g., oceanfront buildings with pools may attain higher rates in summer, whereas Beach Haven appeals to multi-family/golf groups (fourth foursome) as noted by local managers. In any case, Cherry Grove’s proximity to the beach and Pier ensures strong demand relative to inland areas.

Actionable Insights for Investors

• Income Projections: Expect gross rental yields on Beach Haven 4BR units in the 7–12% range of purchase price in good seasons (before expenses). Net yields after costs will be ~4–6% of price (pre-financing). Use local data: NMB’s average STR revenue is about $35k/yr, so target well above that for a 4BR.

• Expense Planning: Allocate roughly half of projected rent to costs (management, cleaning, utilities, HOA). Confirm HOA policies on rentals, pet fees, etc. Don’t overlook marketing costs or capital reserves for repairs.

• Finance Carefully: Compare loan options and crunch financing scenarios. Given high purchase prices, consider 1031 exchanges if selling another property, or self-directed IRA if seeking tax-deferred purchase. Evaluate cashflow vs. equity returns.

• Market Wisely: Highlight Beach Haven’s strengths (recent updates, ocean views, beach proximity) in listings. Price competitively by season. Garner reviews to maintain high ratings (as the existing 10/10 VRBO review suggests).

• Watch Regulations: NMB currently has lenient STR rules, but stay compliant on tax collection and licensing. Avoid excessive personal use to maintain rental legitimacy (important for 1031/IRA scenarios).

By leveraging current market data and accounting for all costs, Beach Haven condos can be solid vacation rental investments. Investors should model both unleveraged returns (to gauge true yield) and leveraged cash-on-cash returns, using tools or advisor input. In summary, Beach Haven’s mix of ocean proximity, spacious units, and strong summer occupancy make it attractive—provided ownership costs and seasonal risk are managed.

Sources: Market data from AirDNA and Airbtics on North Myrtle Beach rentals; local rental listings/management sites for Beach Haven specifics; industry benchmarks for expenses and financing; 1031/IRA rules; and Vacasa market report for cap rates.

Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.