Beachwalk Villas (Cherry Grove) Investment Analysis: 2023–2024 Short-Term Rental Performance

Beachwalk Villas in Cherry Grove, North Myrtle Beach, SC is a 14-story, 60-unit condominium resort (built in 2005) situated second-row – meaning it sits just across Ocean Boulevard from the beachfront. Uniquely, Beachwalk Villas offers an oceanfront amenities center for its owners and guests: a separate ocean-side facility with direct beach access, pools, hot tub, sun deck, and fitness room. This gives Beachwalk Villas many of the benefits of an oceanfront resort while keeping HOA costs somewhat lower than true oceanfront high-rises. Investors are drawn to this property for its strong short-term rental history, modern construction, and prime location in the popular Cherry Grove Beach area.

Beachwalk Villas in Cherry Grove is a 14-story second-row condo tower with an oceanfront amenities building across the street. Many units feature ocean and marsh views, offering a unique selling point to vacationers.

Unit Types and Property Overview

Beachwalk Villas consists of spacious 2-bedroom/2-bath and 3-bedroom/3-bath condo units, all with private balconies and sweeping views. Two-bedroom units are typically around 1,150–1,300 sq ft, while three-bedrooms range from about 1,300 up to 1,465 sq ft. All units feature full kitchens, in-unit washer/dryer, and modern construction (steel and concrete) suitable for heavy rental use. Many units have been upgraded by owners with granite countertops, new appliances, and coastal décor to stay competitive in the rental market.

Recent valuation: As of late 2024, 2BR condos at Beachwalk Villas are valued roughly in the mid-$400,000s, while 3BR condos are around $500,000–$560,000+ depending on floor level, view (corner units can have panoramic ocean and marsh views), and upgrades. For example, a 3BR unit sold in late 2024 for $520,000, and a 2BR end-unit was listed in early 2025 for $475,000. These prices place Beachwalk Villas in the upper-middle tier of North Myrtle Beach condos – reflecting its newer age and amenities, but still a bit less expensive than true oceanfront luxury high-rises.

Amenities: Owners and guests at Beachwalk enjoy an oceanview outdoor pool, an indoor pool (unheated), an indoor hot tub, and an exercise room in the oceanfront amenity building. The condo tower has two elevators and covered parking in a garage podium. Units have high-speed internet and cable included via the HOA. Notably, some units also boast marsh/inlet views off the back side – offering sunrise ocean vistas and sunset views over the Cherry Grove Marsh, a feature frequently highlighted in guest reviews and listings.

Short-Term Rental Performance (2023–2024)

Beachwalk Villas has a proven track record as a strong short-term rental property. The combination of ocean proximity, modern amenities, and attractive units has translated into solid occupancy and income for investors. Below is a summary of typical performance metrics by unit type:

Table: Beachwalk Villas unit profile and performance metrics (2023). Note: 2BR income is an estimate based on local market averages, as individual performance varies. The occupancy rate shown is in line with the North Myrtle Beach average (~58%) for 2023; well-managed Beachwalk units can exceed this in peak season.

Occupancy and Seasonal Trends

North Myrtle Beach experienced robust travel demand in 2023, and Beachwalk Villas was no exception. According to analytics data, the average occupancy rate in North Myrtle Beach was around 58% for the Aug 2023–July 2024 period. Beachwalk units generally mirror these trends, with peak season (summer) occupancy often 90–100% and much lower occupancy in the winter months. July is consistently the busiest month for rentals, with back-to-back weekly bookings common. Spring and fall (shoulder seasons) see moderate occupancy (weekends and festivals boost fall usage), while January–February are the slowest (often 0–20% occupancy for many units).

Guest booking patterns: In peak summer (June–August), Beachwalk condos typically rent weekly (7-night minimums are common) from Saturday to Saturday. This maximizes occupancy and turns. During these peak weeks, expect essentially full occupancy if the unit is competitively priced. In shoulder seasons, minimum stays may drop to 3 nights, capturing long weekends. Off-season, owners often accept 2-night stays or monthly snowbird rentals to generate any income. Overall, annualized occupancy ~55–65% is typical for an actively rented Beachwalk unit – a healthy level for a vacation rental, and slightly above some inland markets (for context, Myrtle Beach’s overall STR occupancy averaged ~56% recently).

Rental Rates and Revenue

Nightly Rates: Beachwalk Villas’ rental rates vary greatly by season:

• Peak summer weeks (June–Aug): 2BR units command roughly $275–$350 per night, and 3BR units $350–$450+ per night, often packaged as weekly rates of ~$2,000–$2,800/week for 2BR and ~$2,500–$3,500/week for 3BR, plus taxes/fees. These rates yield gross peak-month revenue in the $8K–$12K range for July (assuming full occupancy). For example, an Elliott Realty listing shows a 3BR condo at $222/night in early May 2025 (shoulder season); that same unit would likely be around $400/night or higher in mid-July.

• Shoulder seasons (Apr–May, Sept–Oct): Nightly rates drop to ~$150–$250. A spring or fall weekend might gross $500–$700. Monthly “snowbird” rentals in winter (for those who do them) can be around $1,200–$1,800 per month for a 2BR.

• Winter off-season (Nov–Feb): Nightly rates can be $100 or less on weekdays. Many owners run discounts or accept longer stays. Some units simply sit vacant if owners choose not to pursue winter guests.

Over the full year, a well-rented 2-bedroom at Beachwalk can gross roughly $30,000 to $40,000 in rental revenue, while a 3-bedroom can gross $50,000+. One 3BR unit in Beachwalk generated about $55,000 in gross rental income recently, according to MLS data. This aligns with market data showing typical North Myrtle Beach STRs averaging ~$37K/year in host income, with top performers exceeding $60K. Beachwalk’s larger units with ocean views tend to be those top performers, especially if marketed aggressively on multiple platforms.

Gross Income Trends 2023 vs 2024

Investors will be glad to know that short-term rental income held strong through 2023 into 2024. North Myrtle Beach saw about a +2.9% year-over-year increase in revenue in that period, as travel demand remained high. Beachwalk owners generally reported similar or slightly improved gross income in 2023 compared to 2022, though the pace of growth has leveled off after the post-pandemic travel boom. Going into late 2024, occupancy softened a bit (more competition from new listings region-wide), but nightly rates were up slightly to offset inflation. The net result is stable revenue. For 2024 as a whole, most owners can expect similar gross figures as 2023, assuming normal booking patterns.

Guest Satisfaction and Reviews

Guest satisfaction at Beachwalk Villas has been excellent, which is a key driver of repeat bookings and future demand. Across platforms like Airbnb, VRBO, and Booking.com, Beachwalk units consistently earn 4.7–4.9 out of 5 stars on average. In fact, multiple VRBO listings for Beachwalk have “Exceptional” ratings of 9.8–10/10, with guests raving about the condo quality and views. One top-performing 3BR unit has 97 VRBO reviews with a perfect 10/10 score, and another has 85 reviews at 10/10, indicating a long track record of happy renters.

Common guest praises include:

• Stunning views and location: Many reviews highlight the “amazing views” of both the ocean and Cherry Grove Inlet. Guests love being steps from the beach (via the amenity center) but also having peaceful marsh vistas. The location at the quiet north end of North Myrtle Beach (near the Cherry Grove Pier and nature preserve) provides a serene family-friendly atmosphere that still isn’t far from attractions.

• Spacious, well-equipped units: Guests often mention that the condos are clean, well-furnished, and exactly as advertised. Modern kitchens, comfortable beds, and large balconies add to positive experiences. One review noted “the owners thought of everything!” – a sentiment echoed across many listings.

• Resort amenities: Families appreciate the pools and the easy beach access. Even in less favorable weather, the indoor pool and game room provide entertainment for kids. A Booking.com review (via Expedia) stated “This rental is amazing! Very clean ... The amenities building was great and plenty of room…”.

Overall, guest sentiment trends upward – high ratings and positive word-of-mouth make it easier for new owners to keep calendars filled. It’s important for investors to maintain this quality (through good cleanings, responsive management, and updates) because satisfaction directly impacts occupancy and the ability to charge premium rates. Fortunately, Beachwalk Villas has established itself as a desirable, well-reviewed complex in 2023/24, giving new investors a running start.

Panoramic ocean views from a Beachwalk Villas condo (as seen from inside a unit). Guests consistently give Beachwalk properties top marks for views and overall experience, with multiple units rated 9.8–10.0 (“Exceptional”) on VRBO.

Financial Analysis: Cap Rate and ROI Projections

From an investor’s standpoint, Beachwalk Villas can deliver solid mid-range returns for a vacation rental, especially if optimized. Let’s break down the net income, cap rates, and ROI (cash flow) under different scenarios for Beachwalk units, using current (2023–24) data:

Income and Expenses Overview

Gross income: As noted, 2BR units gross ~$35K (give or take) and 3BR units ~$50K+ annually in rent, on average. For pro-forma analysis, we’ll use $40,000 gross for a 2BR and $55,000 gross for a 3BR as representative figures.

Operating expenses: The main ongoing expenses for Beachwalk Villas include:

• HOA Fees: $694/month for 2BR units, ~$770/month for 3BR units. This equates to roughly $8,300–$9,300 per year. Importantly, Beachwalk’s HOA dues cover a lot – building insurance, water/sewer, cable TV, high-speed internet, trash, common area maintenance, pools, etc. Owners only separately pay utilities like unit electricity and interior condo insurance.

• Property Taxes: For non-owner-occupied condos in Horry County, property tax is assessed at 6% of value. On a ~$500K condo, annual taxes are roughly $5,000–$6,000 (varies slightly by exact millage and any applicable city taxes). For example, a $525K sale might have ~$5,500/year in taxes if used as a rental.

• Insurance: The HOA’s master policy covers exterior and liability, but owners carry an HO-6 policy for interior contents and walls-in coverage. This is relatively inexpensive, around $500–$800/year for a condo of this size (wind/hurricane coverage is the main cost factor).

• Maintenance & Repairs: While the HOA handles exterior and common upkeep, the owner is responsible for interior repairs and appliance replacement. A prudent investor budgets perhaps 5% of gross for maintenance. For a 3BR, that’s ~$2,500/year set aside for wear-and-tear (painting, minor furnishings, etc.). In practice, if a unit is kept updated, annual maintenance may be lower, but planning for some capital expense is wise.

• Management Fees: This is the big variable. If you hire a full-service vacation rental management company (like Vacasa, Elliott Realty, etc.), expect to pay around 20–25% of gross rental income as a commission. Some services plus booking platform fees can push it to 30% in cases. On $50K gross, a 25% fee is $12,500 – a huge expense line. On the other hand, if you self-manage (list on Airbnb/VRBO yourself), you avoid that commission, paying only platform service fees (~3% for hosts on Airbnb) and cleaning fees passed to guests. Many Beachwalk owners successfully self-manage to maximize ROI, as we’ll discuss below. (There is no requirement to use an on-site program – Beachwalk is not a condo-hotel, so owners are free to choose management or do it themselves.)

Let’s run two scenarios for a 3BR unit as an example: one with a property manager and one self-managed. Assume purchase price $520,000 (approx market), gross rent $55,000:

• With Property Manager (25% fee): Gross $55,000. Subtract ~25% ($13,750) for management. Subtract HOA $9,240, Taxes ~$5,500, Insurance $700, Maintenance $2,500, Utilities (electric) ~$1,200. Net Operating Income (NOI) ≈ $22,100. This equates to a Cap Rate of ~4.25% (NOI/Purchase Price). If expenses run a bit higher or income a bit lower, the cap could easily slip under 4%.

• Self-Managed: Gross $55,000. No big commission (just small online fees). Subtract HOA $9,240, Taxes ~$5,500, Ins $700, Maint $2,500, Utilities $1,200. NOI ≈ $35,860. That yields a Cap Rate of ~6.9% on $520K – a substantial improvement. In essence, the management fee often represents 2–3 points of cap rate. (In this scenario, self-management saved ~$13.7K, which doubled the net income vs. the managed scenario.)

These calculations align with analyses of similar Myrtle Beach condo investments. One study of an oceanfront building found that self-managed condos were netting ~5–6% cap rates, whereas using a high-cost management service dropped nets to ~3% or even lower. In other words, Beachwalk Villas can produce a decent cap rate for a beach property – potentially in the 5–6% range (which is on par with above-average beachfront condos) – but only if expenses are kept in check. Many coastal condos, especially those with mandatory on-site rental programs, might only net 2–4% caps, so Beachwalk’s flexibility is a boon for ROI-minded investors.

Cash Flow and ROI (With Financing)

Most investors will finance the purchase. Current interest rates for investment condos (as of 2024) are around 6.5–7% on 30-year loans. Using our 3BR example above, if you put 20% down ($104,000 on $520K) and finance the rest at ~7%, the annual debt service is roughly $33,000. Comparing this to the NOI:

• With professional management (NOI ~$22K), you’d have a negative cash flow around -$11,000/year. That would require feeding the property from other income, diminishing any cash-on-cash return (and relying purely on appreciation and tax benefits).

• Self-managing (NOI ~$36K) against the ~$33K mortgage yields a small positive cash flow of about +$3,000/year. That equates to roughly a 2.5–3% cash-on-cash return on the ~$130K cash invested (down payment + closing costs). While positive, that’s a modest return, reflecting high interest rates. If rates were to drop in the future (or if an investor puts a larger down payment), cash flow would improve. For instance, at 50% down, the cash-on-cash would be significantly higher since debt costs halve.

In summary, Beachwalk Villas can break even or better on a leveraged basis if you self-manage or otherwise minimize expenses. If you rely on an expensive management contract and high leverage, expect to feed the negative gap (or utilize tax strategies to offset it). These dynamics underscore why many savvy investors in Myrtle Beach choose to self-manage their short-term rentals – keeping that additional 20-30% gross income can be the difference between a deal that cash flows versus one that doesn’t.

Operating Expense Breakdown (Typical Annual)

For quick reference, here’s an approximate breakdown of annual operating costs for a Beachwalk Villas unit (not including mortgage or depreciation):

• HOA Dues: $8,328 (2BR) to $9,240 (3BR) per year.

• Property Tax: ~$5,000 (2BR) to ~$6,000 (3BR) per year (non-primary residence).

• Insurance (HO-6 condo policy): ~$600–$800.

• Utilities (Electricity): ~$1,000–$1,500 (higher if heavily used in summer with A/C; HOA covers water, cable, internet).

• Maintenance/Repairs: ~$1,500 (2BR) to $2,500 (3BR) reserve.

• Management Fees: 0 if self-managed; if using a local agency, ~20–25% of gross (e.g. $8–$15K depending on revenue).

• Total (self-managed): Around $15K–$18K/year in fixed expenses for a 2BR, $18K–$20K/year for a 3BR.

• Total (with management): Add the management commission – which could bring totals to $25K+ for a 2BR, $30K+ for a 3BR, drastically reducing net income.

These figures reinforce the earlier ROI discussion: a Beachwalk condo can net in the mid-$20Ks (2BR) up to mid-$30Ks (3BR) after paying its bills if no large management cut is taken. That translates to unlevered cap rates ~5–7% (decent for a beach market). But with full-service management, net profit might only be in the teens (thousands), yielding cap rates as low as ~2–4%. Investors should decide which approach fits their strategy (hands-on vs. turnkey) and run the numbers accordingly.

HOA Rules, Regulations, and Rental Policies

Before investing in Beachwalk Villas, it’s important to understand the homeowners’ association (HOA) rules, as they affect how you can use and rent the property. Here’s an overview:

• Short-Term Rentals: Permitted. Beachwalk Villas was designed as a vacation rental condo, so there are no HOA restrictions against daily/weekly rentals. Owners can rent on their own or through any agency of their choice. (This freedom is a huge plus compared to some “condo-tel” resorts that require using an on-site rental program.)

• Minimum Rental Duration: The HOA itself does not impose a minimum stay length, but many property managers choose to require 7-night minimums in peak summer as a business practice. Off-season, owners can rent for just a night or two if desired. There is no annual lease requirement or anything – short-term stays are fully allowed.

• Pet Policy: Owners are allowed pets, but RENTERS are not. The HOA’s rules state “Only owners allowed pets.” If a guest brings a pet, it is a violation. Rental agencies will charge a hefty cleaning fee (e.g. $500) and can evict renters for unauthorized pets. So, while you as the owner can bring Fido to your condo, you cannot advertise your unit as “pet-friendly” to renters. This is common in resort condos to prevent damage and allergens.

• Parking and Vehicles: Each condo typically gets 2 parking passes for the on-site garage. Motorcycles and trailers are prohibited for guests per HOA (common in MB condos due to noise and space). However, note that the HOA lists “Owner Allowed Motorcycle/Golf Cart” in amenities – meaning owners may bring a motorcycle or golf cart and park in designated areas, but vacation renters may not. This is a slight perk if you personally ride a motorcycle or use a golf cart locally, but your renters will need to stick to regular cars.

• Amenities Use: All guests and owners have access to the oceanfront amenity center (pools, etc.). There may be HOA-issued wristbands or passes to enforce this in peak season. The HOA also reserves the right to close amenities for maintenance or impose reasonable rules (e.g. pool hours, no glass, etc.).

• Noise/Behavior: Standard condo rules apply – no excessive noise, especially during nighttime quiet hours. Beachwalk doesn’t report any unusual rules here; it’s a family-oriented building, so basic courtesy is expected.

• HOA Governance: The HOA is professionally managed and handles common area upkeep. Dues also include building insurance (wind and hazard) as noted. There is a clubhouse/meeting room owners can use in the amenity building as well. No specific owner restrictions (like occupant age or rental caps) exist beyond those mentioned.

In summary, Beachwalk’s HOA is quite investor-friendly. The key rules to note are the no renter pets and no motorcycles/trailers for renters policies – which are standard in many Myrtle Beach condos. As an owner, you have the freedom to rent short-term at will, use the property for yourself, and even bring your pet or motorcycle when you visit, which many condo resorts do not allow for guests. Always review the latest HOA docs for any updates, but as of 2024, Beachwalk’s rules align well with the goals of a short-term rental investor.

Advanced Investment Strategies and Considerations

Investing in a Beachwalk Villas condo can be structured in creative ways to maximize financial benefits or fit specific investor needs. Here are some strategies and considerations:

Utilizing a 1031 Exchange

Many buyers of vacation rentals use a Section 1031 Exchange to defer capital gains taxes. If you are selling another investment property, you can exchange into a Beachwalk Villas condo and defer the tax bill, as long as you follow IRS rules. The condo must be held for investment (not primarily personal use). The IRS safe harbor guidelines (Rev. Proc. 2008-16) essentially require that you rent the vacation property out at least 14 days a year and limit your personal use to no more than 14 days (or 10% of the days rented) in each of two years surrounding the exchange. In practice, this isn’t hard to do – simply ensure the unit is available for rent most of the year and avoid staying there too often yourself initially. Beachwalk Villas qualifies as “like-kind” real estate for 1031 purposes as long as you adhere to these rental usage requirements.

In short, a 1031 exchange into Beachwalk is a great way to roll gains from another property tax-free into a beach rental. Just treat it as a rental (which is the plan anyway for income), and after a couple of years you can use it more for personal vacation time if you wish. Always consult a qualified intermediary or tax advisor to execute the exchange properly, but know that 1031 is a common and viable strategy in this market.

Self-Directed IRA/401(k) Purchase

Some investors consider buying a condo like Beachwalk Villas through a self-directed IRA or Solo 401(k) to take advantage of tax-deferred or tax-free growth. It is possible – a Self-Directed IRA can invest in real estate including vacation rentals. However, there are strict rules:

• The property must be purely for investment while in the retirement account. You (or your family) absolutely cannot use it for personal vacations. That means no staying in your condo, not even one night, as long as the IRA owns it. It must be renter-only.

• All expenses and income flow through the IRA. You need enough cash in the IRA to cover HOA fees, repairs, etc., and all rent checks must go back into the IRA.

• You (the IRA owner) can’t perform maintenance or materially “work” on the property yourself – you must hire third parties, to avoid “self-dealing” rules.

• Financing an IRA property is tricky (non-recourse loans only).

Because Beachwalk Villas are desirable vacation properties, not using it personally can be a difficult trade-off for some – after all, one benefit of owning a beach condo is you can enjoy it too. If purchased via IRA, it strictly becomes an investment asset until you withdraw it from the IRA (which could be decades). As one industry expert puts it: you can use an SD-IRA to buy a vacation home, but you can’t vacation in it while it’s in your IRA. So, this strategy is only appropriate if you purely want the income and long-term appreciation inside your retirement account.

The upside is all rental profits and future sale gains go back into the IRA tax-deferred (or tax-free if a Roth IRA). Just weigh the loss of personal enjoyment and the compliance burdens. Professional advice is a must for this route. For most, a 1031 (taxable account purchase) is simpler, but high net worth individuals have used IRAs to diversify into rental condos.

Self-Management vs. Professional Management

We touched on this in the ROI section, but it’s a critical strategic decision. Self-management entails you (or your designated agent) handling marketing, bookings, guest communication, and coordinating cleaning/maintenance. Professional management means paying a company to do all that. Here are the key pros/cons:

• Self-Management Pros: You save the ~25% commission, immediately boosting your bottom line. You have full control over the listing (you can adjust rates dynamically, vet guests, and build up direct repeat clientele). Many owners enjoy the process and personal touch – you can ensure quality control and potentially get better reviews because you’re more attentive than a large agency. Technology (Airbnb, VRBO, channel managers, pricing tools) has made it easier for remote owners to self-manage effectively.

• Self-Management Cons: It’s hands-on and time-consuming, essentially becoming a part-time hospitality job. You’ll field guest inquiries at all hours, handle issues (lockouts, the A/C malfunctioning, etc.), and need reliable local cleaners and handymen on-call. If you’re not local, you might need to hire a local co-host or at least make periodic trips to check on the unit. During peak season turnover days, quick coordination is critical. Some investors simply don’t have the time or desire to do this level of work.

• Professional Management Pros: It’s turn-key. The management company will market the unit (often on multiple websites), handle keys/locks (some have on-site check-in or keyless entry), coordinate cleanings and maintenance, and send you a check each month. Truly passive income (aside from reviewing statements). Good local companies have marketing reach and dynamic pricing systems to maximize bookings for you. They can be especially helpful if you’re new to STRs or remote.

• Professional Management Cons: The cost is high – 20-30% of gross revenue typically, which often slashes profit by half or more. Also, no one cares about your property as much as you do; a big agency might not give personalized attention to decor or to guest screening beyond basic rules. Some owners feel they can do a better job and achieve higher occupancy on their own. Additionally, a third-party manager may have policies (like stricter min stays or higher cleaning fees) that could affect bookings.

Hybrid options: Some investors start with a professional manager for year 1 to learn the ropes and then take over themselves. Others self-manage but hire a local co-host (paying maybe 10% for a local person to be “on call”). There are also services that handle all guest communications for a lower fee while you handle on-the-ground (a possible middle ground). The choice often comes down to your location, experience, and financial goals. Given the dramatic effect on ROI – for Beachwalk a manager could reduce net income by ~$10K+ – it’s worth serious consideration. Many Beachwalk owners do appear to self-manage, as evidenced by the numerous condos listed on Airbnb/VRBO with individual host profiles and glowing reviews about owner responsiveness.

Personal Use vs. Rental Optimization

Beachwalk Villas uniquely appeals to those who want a mix of investment and personal enjoyment. If you plan to use the condo frequently, understand that every owner stay is time not rented (an “opportunity cost”). Some investors try to find a balance: rent during high season for maximum income, and reserve a few weeks in the off-season for themselves. This can work well – the peak rents subsidize your low-season personal vacations. Just be mindful of the 14-day personal use guideline if you ever want to do a 1031 exchange later (and note: personal use is prohibited if in an IRA as mentioned).

Comparisons to Other Cherry Grove / North Myrtle Beach Properties

When evaluating Beachwalk Villas as an investment, it’s helpful to compare it to similar condos in the area:

• Oceanfront vs Second-Row: Beachwalk (second-row with oceanfront amenities) often gets compared to true oceanfront condos. Oceanfront properties like Prince Resort (at Cherry Grove Pier) or Laguna Keyes (oceanfront Cherry Grove) can sometimes command slightly higher rental rates because of direct ocean views and walk-out beach access. However, they also typically have higher purchase prices or HOA fees. For instance, Prince Resort has two towers (one oceanfront, one across the street) and on-site hotel-style management; its units are priced similarly, but the HOA includes things like unit electricity and even HO6 insurance, resulting in higher monthly dues. Some Prince units are “condo-tel” classified, which can complicate financing. By contrast, Beachwalk’s self-management freedom and included amenities allow it to achieve comparable rental income with lower overhead. In practice, a well-furnished 3BR at Beachwalk can gross $50k+ just like a 3BR oceanfront up the street. The cap rates end up similar because Beachwalk’s slightly lower rents are offset by its lower cost basis. For investors not absolutely requiring oceanfront, Beachwalk offers an excellent value proposition.

• Other Second-Row Condos: Few second-row buildings in North Myrtle Beach offer the combination of height and amenities that Beachwalk does. One might consider Tilghman Beach & Golf Resort (technically in the Ocean Drive section, just south of Cherry Grove) which is a large second-row building with similar amenities (indoor/outdoor pools, etc.). Tilghman B&G, however, has a hotel-like front desk and often requires using their rental program (for a fee split), although some units are rented independently. Its pricing and HOA fees are in the same ballpark. Beachwalk likely performs similarly in rentals, but with a smaller, more boutique feel. Smaller second-row complexes or low-rises in Cherry Grove (e.g., duplex condos or older buildings) might be cheaper to buy, but they generally have far fewer amenities and attract lower rental rates – and thus often a lower caliber of returns or guest satisfaction.

• Age and Condition vs. Rental Income: Beachwalk (built 2005) is newer than many Myrtle Beach area condos, meaning modern layouts (open kitchens, large bathrooms) and compliance with newer codes (sprinkler systems, etc.). Renters do notice this – newer properties tend to get higher rates and reviews. Some older oceanfront buildings (e.g. built in the 1980s) might sell for less per square foot, but you could face higher maintenance and lower rents (guests might prefer a newer place even if one row back). The fact that Beachwalk units have done as well as $55k/year in gross rent, and cap out around 5–6% cap rate which is on par with “above-average oceanfront condos”, speaks to the strength of the property. It effectively punches above its weight for a second-row, due to that oceanfront amenities building and unobstructed views (no high-rise in front of it, just homes).

In Cherry Grove specifically, Beachwalk Villas is one of the top picks for condo investors. Oceanfront alternatives like The Oceans (an older high-rise) or Sea Pointe can be considered, but those are older and smaller. Prince Resort is a direct competitor but with the condo-hotel structure to consider. If we broaden to North Myrtle Beach as a whole, other high-end options include North Beach Plantation (very high-end, pricey), Mar Vista Grande in Ocean Drive (luxury, higher price point), or Crescent Keyes/Blue Water Keyes in Crescent Beach (oceanfront glass tower condos similar era). Those all can do very well too, but again purchase price and HOA differ. Beachwalk offers a sweet spot for many – not cheap, but more affordable than North Beach Plantation; not oceanfront, but might have similar rental draw as some oceanfronts; well-maintained, and in the quieter Cherry Grove locale that many families seek out.

Bottom line: Beachwalk Villas stacks up very well. Its ROI in % terms is comparable to similar-grade properties and often better when self-managed. In terms of cash flow, it can outperform more expensive oceanfront buys that have the same rental income but higher costs. As always, compare specific unit histories if possible (some listings will share “this unit grossed $X last year”), and factor in HOA differences. Beachwalk’s range of ~5% cap (managed) to ~7% cap (self-managed) is a healthy range for coastal real estate. Many other condos in Myrtle Beach only net 2–5% for absentee owners. So if managed smartly, Beachwalk Villas is a standout for Cherry Grove investors.

Actionable Insights for Prospective Investors

• Leverage the Peak Season: The summer months will generate the bulk of your revenue. Make sure your pricing is optimized (don’t leave money on the table in July – many owners actually underprice and fill up too fast). Use dynamic pricing tools or watch comparable listings to set nightly/weekly rates that maximize income while still achieving full occupancy June–August.

• Maximize Reviews & Visibility: Early on, invest time in getting great photography, a compelling listing description, and some initial positive reviews (even if it means pricing a bit lower for your first few renters). The review momentum at Beachwalk is strong – joining that 4.8–5.0 star club will pay dividends in higher occupancy and the ability to raise rates. Highlight Beachwalk’s unique features in your marketing: the dual water views (ocean & marsh), the amenity center, the spacious floor plans, etc.

• Consider Self-Management or Hybrid: If you have the capability, self-managing can improve your annual return by several thousand dollars. If you’re hesitant, one strategy is to self-manage during peak season (when issues are fewer because everything is in top shape and renters are plentiful) and maybe hire a manager for the off-season or vice versa. Even negotiating a lower commission (some local managers might do 18–20% for a desirable property) can help. Remember, every 5% of commission is a few thousand dollars off your NOI.

• Monitor HOA financials: Beachwalk’s HOA fee is significant, but it covers a lot. Stay involved via owner meetings or at least read the minutes/newsletters. The building is about 20 years old; look for any upcoming large capital projects (roof, elevators, etc.) that could affect fees or lead to special assessments. Thus far, Beachwalk’s fees are in line with similar resorts and have ranged from ~$694 to $1,182 across units. Solid reserves and maintenance can be a sign of a healthy HOA (which preserves property values and attracts buyers down the road).

• Utilize Tax Benefits: Remember that in addition to cash flow, your Beachwalk condo can provide tax advantages. As a rental, you can depreciate the building (not the land) over 27.5 years, which often creates a paper loss that shelters some of your rental income from taxes. Many expenses like travel to inspect the property, supplies, and property management software are deductible. In some cases, investors who materially participate can use losses to offset other income (consult a CPA on Section 469 passive activity rules). And of course, a 1031 exchange on exit can defer gains. All these can significantly boost your after-tax ROI.

• Comparison Shop Financing: Condo financing can vary – some lenders have higher rates for condos or require larger down payments (especially if the condo has a high investor ratio or pending litigation – things to check in Beachwalk’s HOA questionnaire). Shop around local banks and mortgage brokers. Sometimes local lenders understand the vacation rental market better and can offer competitive loans. A slightly lower interest rate or 5% more down can turn a slight negative cashflow into neutral/positive.

• Exit Strategy: Think about your hold period. North Myrtle Beach real estate has appreciated nicely over the long run, though with some cyclical dips. If your plan is to hold for many years, focus on maintaining the unit’s condition and keeping it “rent-ready” even if market conditions fluctuate. If your plan is shorter-term (e.g. 5 years), aim to build a strong rental history dossier – it will help immensely in marketing to the next buyer (who is likely also an investor). Showing prospective buyers a proven $50k+ annual income with documented expenses (and maybe your VRBO listing with 100+ reviews) can increase the resale value. Essentially, treat it like you’re building a business that you might sell. Beachwalk’s investor-friendly nature means future buyers will care about that rental track record.

Finally, enjoy the process. One reason many choose a vacation rental like Beachwalk Villas is that you can personally enjoy the asset while it works for you. Cherry Grove Beach is a special place – from the tranquil marshes to the fishing pier and the wide sandy shoreline, it attracts a loyal following of vacationers. By investing here, you’re not only poised to earn solid returns and capitalize on the 2023–2024 travel trends, but you also get a slice of a lifestyle that can pay dividends in memories (just keep the personal use to a reasonable amount to maintain that income!). With due diligence and active management, Beachwalk Villas in Cherry Grove can be a rewarding addition to your investment portfolio and summer plans alike.

Sources:

• Beachwalk Villas HOA and listing data (Home values, HOA fees, pet policies)

• MLS records and sales data (unit sizes, rental income history)

• Airbtics/AirDNA market data (North Myrtle Beach occupancy and revenue trends)

• VRBO rental listings and reviews for Beachwalk Villas (guest satisfaction examples)

• Condo-World and Elliott Realty rental info (amenities, rental policies)

• Oceanfront condo investment analysis (cap rate comparisons)

• IRS guidelines on 1031 exchanges for vacation homes

• Self-Directed IRA rules for real estate (no personal use clause).