Investing in Short-Term Rentals at The Caravelle Resort, Myrtle Beach

Introduction – The Caravelle Resort in Myrtle Beach, SC has long been a favorite oceanfront destination for vacationers – and it’s increasingly popular with short-term rental investors. Whether you’re a first-time buyer, a 401k/retirement account holder looking to diversify into real estate, or a small business owner seeking passive income, Caravelle offers an enticing mix of affordable condo prices, strong rental demand, and resort amenities. This comprehensive guide examines the current units for sale at Caravelle, recent rental income figures (2023–2024), guest demand trends (Airbnb/VRBO), HOA fees and rules, comparisons to nearby resorts, management options, and pro tips to maximize ROI. Read on for an investor-focused analysis of Caravelle Resort and how to make the most of a vacation rental condo investment here.

An aerial view of the oceanfront towers of The Caravelle Resort in Myrtle Beach. These beachfront condos attract steady vacation rental demand, making them a compelling option for investors.

Caravelle Resort Overview: Location & Amenities

Caravelle Resort is situated on the “Golden Mile” of Myrtle Beach’s desirable north end (around 70th Avenue North), a prime location central to many attractions. It actually comprises two buildings – the main 15-story oceanfront tower at 6900 North Ocean Blvd (the focus of this article) and the Caravelle Tower across the street. The resort was originally a hotel, but all units were converted to condominiums in 2006. Today, Caravelle offers studio efficiencies and one-bedroom suites (with a rare two-bedroom unit occasionally available).

Resort Amenities: Caravelle boasts a full array of amenities that appeal to vacationers of all ages. Owners and guests enjoy indoor and outdoor pools, multiple hot tubs, a lazy river, kiddie water play areas, and a fitness center. There’s also an on-site restaurant, a seasonal poolside tiki bar, game room, small convenience store, and even a spa and banquet hall. In total, the resort features nine pool attractions and water amenities (including heated pools and a “wet and wild” kiddie park), which is a major draw for families. Being right on a wide stretch of beach, Caravelle provides direct beach access plus convenient proximity to popular spots like Broadway at the Beach, Barefoot Landing, and the Carolina Opry within a 10-minute drive. This blend of a quiet beachfront location with easy access to entertainment makes Caravelle very attractive to renters.

From an investor’s standpoint, Caravelle’s strong amenity package and location help keep occupancy rates high in peak season (and even shoulder seasons), as guests often specifically seek out resorts with lazy rivers, pools, and on-site dining. As one local source notes, Caravelle units “booked regularly” thanks to the resort’s popularity, supporting healthy rental income potential.

Current Units for Sale and Pricing (2025)

As of this writing, there are roughly 20+ Caravelle condos listed for sale on the MLS, ranging from studios to one-bedrooms (and one two-bedroom). Importantly for investors, we will only consider currently available units, since off-market data isn’t useful for immediate opportunities. Here’s an overview of what’s on the market:

• Studio/Efficiency Units (≈400–500 sq ft): These are the smallest “hotel room” style condos with a kitchenette. Current asking prices are around $140,000 to $170,000. For example, a 500 sq. ft. ocean view studio was recently listed at $142,000 after a price reduction. These studios typically accommodate 2–4 guests (often with two beds or a Murphy bed) and have private balconies. HOA dues for studios run lower (more on HOA fees below).

• One-Bedroom Units (≈515–625 sq ft): The majority of Caravelle condos fall in this category. Direct oceanfront 1BR suites (with a separate bedroom plus a sleeper sofa/Murphy bed in living area) are currently priced in the $169,000 to $220,000 range depending on floor level, view, and upgrades. For instance, one nicely furnished 1BR (625 sq ft) is listed at $179,900, while a top-floor 1BR unit was asking $220,000. Most one-bedrooms can sleep 6 (two queen beds in the bedroom plus a pull-out or Murphy bed in living room). These are the workhorse rentals with broad appeal to small families and couples.

• Two-Bedroom Unit (≈1,200 sq ft): A single two-bedroom, two-bath unit is on the market – a rare find at Caravelle. It’s an extra-large condo (created from a unique terrace layout) and listed at $325,000. This 2BR unit offers a spacious floorplan and extended balcony (“terrace view”) that sets it apart. Such a unit can accommodate larger groups, but with only one available, it’s a niche opportunity.

Overall, Caravelle condos remain very affordable compared to many oceanfront properties. Studios around $150k and 1-bedrooms around $180k mean a relatively low cost of entry for an oceanfront investment. Even the top-end 2BR at $325k is priced below newer luxury condos. This affordability is a big reason Caravelle is attracting first-time investors and those rolling over retirement funds – you can buy a beachfront rental for the price of a luxury car.

Do note that pricing varies with the season and inventory. As of May 2025, inventory is somewhat elevated (around 20 active listings) which has kept prices competitive. Savvy buyers may find some price reductions on units that have sat on market (many current listings show recent price cuts of a few thousand dollars). This suggests sellers are negotiable – a potential opportunity to acquire below asking price and improve your initial ROI.

Rental Income Performance (2023 & 2024)

For any vacation rental investor, cash flow is king. So how are Caravelle units actually performing in terms of rental income? Let’s dive into real numbers from 2023 and 2024, broken down by unit type where possible. Keep in mind these are gross rental income figures (before expenses like HOA, taxes, etc.), and actual results vary based on how a unit is managed and its condition. Nonetheless, recent data gives a solid benchmark.

• One-Bedroom Oceanfront Condo: A 1BR unit on the 8th floor managed via Airbnb reportedly grossed $34,805 in rental revenue in 2023. This high-performing unit sleeps 6 and was updated nicely, illustrating what an optimized listing can achieve. On the other end, another 1BR oceanfront (also sleeps 6, but perhaps with less aggressive marketing or more owner usage) grossed $22,807 in 2023. By late 2024, that second unit had $18,716 in rental income year-to-date (through part of the year), indicating it was on track to meet or exceed the prior year. These examples show a range for 1-bedroom condos: roughly $23k–$35k gross annually in recent years. Units that are updated, with great photos, and actively managed for max bookings clearly push the upper end of that range.

• Studio/Efficiency Condo: We have slightly less direct data on studios (as owners often focus on 1BR performance). However, we can extrapolate. Efficiency units at Caravelle likely gross a bit less due to smaller size and typically lower nightly rates. Many studios are rented to couples or single travelers. Anecdotally, a studio might bring in somewhere in the $15,000–$25,000 per year range gross, depending on occupancy. For comparison, at the nearby Ocean Reef Resort, a similar oceanfront efficiency grossed about $26,377 in the first 9 months of 2024, suggesting an annual total around $30k if extrapolated. A Caravelle studio should be in the same ballpark, potentially a tad lower since Caravelle’s main building efficiencies are around 400–450 sq ft (versus video game slightly larger units at some peers). In short, studios can still generate solid income relative to their lower price point, but investors shouldn’t expect them to match the one-bedrooms on revenue.

• Two-Bedroom Condo: The 2BR unit at Caravelle is unique, so we have no directly published 2023 data in listings. However, one can reasonably project its performance. With 2 bedrooms and 2 baths, sleeping 8+ people, this unit can command a much higher nightly rate, especially in summer (likely $300+/night in peak season). It also could attract longer family stays. Conservative estimates put a 2BR at perhaps $40,000–$50,000 gross per year if well-managed. Some similar 2BR units at other resorts in Myrtle Beach earn in that range. Given its listing price ($325k), an income around $45k would represent a ~14% gross yield, which is attractive. An investor considering the 2BR would want to verify its actual rental history (if previously rented) or pro forma from the seller to refine these numbers.

Seasonality Factors: It’s crucial to understand that rental income in Myrtle Beach is highly seasonal. A large chunk of the annual revenue is earned in the summer high season (June through August). During peak weeks, nightly rates skyrocket – oceanfront 1BR units can fetch $200–$250+ per night in July, while studios might get $150–$175/night. Occupancy in summer is often near 90–100% (back-to-back turnovers). Spring and fall “shoulder seasons” also see strong occupancy on weekends and steady mid-week bookings, albeit at moderate rates (perhaps $100–$150/night for a 1BR in September/October, for example). Winter months (November through February) are the slowest – expect greatly reduced nightly rates (sometimes $60–$80/night for a 1BR) and lower occupancy. Many owners pivot to offering monthly winter rentals to “snowbirds” at ~$900–$1200/month to bridge the off-season gap. This can keep some income flowing in winter while reducing wear and tear from nightly turnovers.

Demand and Occupancy Trends: The good news is that Caravelle enjoys consistent demand thanks to its amenities and reputation. A glance at Airbnb/VRBO activity confirms that guest demand is robust. One Airbnb listing (a 1BR unit) has over 212 guest reviews with a 4.71/5 rating – a sign of high occupancy and guest satisfaction. Another condo listing notes that “100% of guests in the past year gave this location a 5-star rating”, highlighting how the resort’s location meets traveler expectations. Owners frequently remark that summer weekends and holidays book out far in advance. Even in the slower season, Caravelle gets weekend golfers, holiday travelers, and event attendees. The resort’s marketing (and the Myrtle Beach draw) ensures a steady stream of potential renters. In fact, as one local condo site points out, Caravelle units “are booked regularly, so rental income is [strong] in this complex.”

Of course, the actual income an investor sees will depend on how they manage the property (more on management strategies shortly). But purely from a market demand perspective, Caravelle has proven itself as a reliable income generator in 2023 and 2024, even with some travel volatility in those years. The trend going into 2025 is positive – Myrtle Beach tourism numbers are up, and many travelers now prefer condos over hotels, fueling the short-term rental market. Caravelle’s niche (family-friendly oceanfront condo-hotel) is right in the sweet spot of that demand.

To summarize rental performance: 1BR units gross ~$25k–$35k/year; studios ~$20k/year (give or take); and a 2BR could approach ~$40k+. Properly budgeting for expenses (HOA, etc.) which we cover next, these numbers can yield a solid net income and return on investment, especially if the unit is financed with a reasonable down payment.

HOA Fees, Inclusions, and Restrictions Impacting Returns

One of the most important financial factors in a condo-tel investment like Caravelle is the Homeowners Association (HOA) fee. These monthly fees are relatively high on oceanfront resorts, but it’s because they cover a lot – essentially operating the resort and many utilities – which would otherwise come out of an owner’s pocket. Let’s break down Caravelle’s HOA situation:

HOA Fee Amounts: At Caravelle, HOA dues are assessed based on unit size/floorplan. Currently, one-bedroom units (~519–625 sq ft) have HOA fees around $726 to $872 per month. For example, a 519 sq ft 1BR carries ~$726/mo and a 625 sq ft 1BR is about $872/mo. The efficiency studios (around 400–450 sq ft) have lower fees in the $540–$650 per month range (one 372 sq ft efficiency is $542/mo HOA). The large 2BR unit (1200 sq ft) has the highest HOA fee at $1,053 per month. In short, expect roughly $1.30–$1.50 per square foot per month in HOA dues. So while $800+ monthly might sound high, remember it’s covering many costs (see below).

What the HOA Includes: Caravelle’s HOA fee is comprehensive, which helps offset some expenses for owners. According to resort info, the fee covers most utilities and services – including water/sewer, trash pickup, cable TV, high-speed internet, pest control, common area maintenance, pool upkeep, elevators, 24/7 security, and building insurance. Notably, some similar resorts even include electric in unit, but it’s unclear if Caravelle’s HOA covers the electric bill for each unit – some sources don’t mention electricity explicitly. (Owners I’ve spoken to indicate electric is included at Caravelle, which is common for older condo-tels, but be sure to confirm with the HOA.) The bottom line is, as an owner you won’t be writing separate checks for cable/internet or building insurance – those are paid via the HOA. You mainly would only have your contents insurance (a small condo policy), property taxes, and any financing costs outside of the HOA fee.

HOA Impact on Returns: High HOA fees mean investors must carefully calculate net income. For example, if a 1BR grosses $30,000 in rents and has an ~$9,600/year HOA ($800 x 12), that immediately brings gross down to ~$20,400. Then subtract property tax (around 1% of value in SC, so say $1,800) and insurance/maintenance reserves (perhaps another $1,000+), and you might net around $17,500 before any management costs or mortgage. If you self-manage, that $17.5k is essentially your cash flow before debt service. If you use a property manager (20–40% commission), the net shrinks further. Thus, HOA fees are the biggest expense item and can eat roughly 30–40% of gross income. The key for investors is to factor this in when evaluating ROI – a condo with a lower purchase price but high HOA might yield a similar return as a pricier condo with lower fees. Always run the numbers.

On a positive note, because Caravelle’s HOA covers so much, you have predictable expenses. You won’t get surprise assessments for a new roof or major repairs as often (the HOA builds reserves and handles those). And included utilities mean you’re not paying those out-of-pocket monthly. It simplifies the operation of your rental.

Restrictions and Rules (Important for STR): Prospective buyers often worry about HOA rules that could hinder rentals. In Caravelle’s case, short-term rentals are explicitly allowed – the development is essentially designed for it. There is no restriction requiring you to use the on-site rental program (some condo resorts have clauses forcing owners into the hotel management – not so here). You are free to self-manage on Airbnb/VRBO, hire an off-site property manager, or join the on-site rental program. Both short-term and long-term rentals are permitted (long-term meaning tenants 6+ or 12-month leases, if one chose to do that, though most owners stick to vacation rentals).

One rule to note: Guests are not allowed to have pets (only owners can have pets on property). So as a rental, you’ll be advertising “no pets” (a standard policy in most Myrtle Beach resorts). Also, the resort may have some amenity access differences for guests not booked through the on-site management. For example, one Airbnb host mentions that the Caravelle resort gym and tiki bar are for “on-site guests only” – meaning guests who rent through the hotel front desk get certain perks. However, practically, independent rental guests can still use the pools, lazy river, beach access, etc. (these are HOA amenities for all owners and their guests). They just might not get resort towels or have charging privileges at the bar. It’s something an owner should clarify to renters (and many do in their listing description). Overall, there are no onerous rental restrictions at Caravelle – it is fundamentally an investor-friendly environment.

In summary, HOA fees at Caravelle are high but inclusive, and short-term rentals are fully allowed. The fees will significantly affect your net ROI, but they pay for the amenities and services that generate the high rental income in the first place. When comparing Caravelle to a condo with lower HOA, be sure to also compare the rental earning potential. Often, the resorts with very low HOAs don’t allow short-term rentals or lack the amenities to draw high-paying guests, so it’s a trade-off. At Caravelle, you’re essentially buying into a turnkey resort operation – for a fee, yes, but one that (if managed smartly) still leaves a healthy profit margin from rental operations.

Caravelle vs. Nearby Oceanfront Resorts: How Does it Stack Up?

Myrtle Beach’s north end has several popular oceanfront condo-resorts – how does Caravelle compare in investment terms? The closest peers in location and concept would be Grande Cayman Resort (formerly Long Bay Resort, at 72nd Ave N) and Ocean Reef Resort (at 71st Ave N). A bit further south there’s Beach Colony and Dunes Village (around 53rd–62nd Ave N, with Dunes Village being a newer waterpark resort). Here’s a quick comparison:

• Rental Performance: Caravelle’s gross rental ranges (~$20–$35k for 1BRs) appear to be on par with similar 1BR units at Ocean Reef and Grande Cayman. As mentioned, an efficiency at Ocean Reef did ~$26k in 9 months of 2024, which aligns with Caravelle’s $22–$30k/year for small units. Owners of 1BRs at Grande Cayman report mid-$20k to low-$30k annual gross as well (Grande Cayman has the advantage of a bigger waterpark, but Caravelle holds its own with multiple pools and perhaps lower competition per unit). Dunes Village’s larger condos can gross more, but those units also cost 2–3 times as much to purchase. In short, Caravelle delivers competitive rental yields for its class. Guests flock to whichever resort offers the best combination of price and amenities, and Caravelle often wins on value, keeping its occupancy high.

• Purchase Price: Caravelle units are generally priced a bit below Grande Cayman or Dunes Village units of similar size, mainly because Caravelle is a slightly older complex (built 1960 vs 1980s or 2000s for some others) and most units are smaller. For example, a direct oceanfront 1BR at Grande Cayman might sell around $200–$250k depending on updates, which is pretty close to Caravelle’s $180–$220k range – so they’re comparable. Ocean Reef units are very similar in price to Caravelle’s. One benefit Caravelle has is more inventory (since it’s a large complex), which gives buyers options and sometimes better deals. At any given time, you might only find a couple units for sale in a place like Dunes Village, often at premium prices, whereas Caravelle has multiple listings to choose from, occasionally including motivated sellers.

• HOA Fees: The HOA dues at Caravelle (~$700–$900 for 1BRs) are in line with other oceanfront resorts that include lots of amenities. Grande Cayman’s HOA is similar (also covers water, electric, etc., often in the $800+ range for a 1BR). Dunes Village, being newer, has slightly higher HOAs and also charges additional facility fees but also commands higher rents. There are some older complexes with lower HOAs (e.g. Beach Colony around 53rd Ave might have fees a bit lower), but those may not include as many utilities and their rental potential is similar. So Caravelle isn’t at a disadvantage here – HOAs are a fact of life for these full-service resorts, and Caravelle’s fee structure is typical.

• Appreciation & Resale: Historically, condo-tels like Caravelle saw a big run-up in prices during the 2004–2006 boom, a crash in 2008–2010, and a gradual recovery. In the last few years (2021–2024), values have appreciated significantly due to the STR investment surge. Caravelle units appreciated ~10–20% from pre-pandemic to 2023. As a comparison, Dunes Village and higher-end condos appreciated more on a dollar basis, but their percentage gains are similar. The key difference is Caravelle’s absolute price points are lower, so it’s accessible. On resale liquidity: Caravelle’s abundant sales (42 units sold in a recent period per market reports) indicate a fairly liquid market – there are always buyers looking for cash-flow condos in this price range. Thus, an investor can reasonably expect to sell a Caravelle unit without too much trouble when the time comes (especially if the market remains strong). You may not see huge appreciation year-over-year (this is generally a cash flow play more than capital appreciation), but modest appreciation plus years of rental income can make for a great overall return.

In summary, Caravelle holds its own against nearby oceanfront resorts. It might not have a massive water park or brand-new construction, but it also doesn’t carry a huge price tag. For the value investor, Caravelle often wins on ROI efficiency – you’re paying less per unit and still getting similar rental income to the neighbors. The resort’s long track record and loyal repeat vacationers give it an edge in keeping bookings steady. Unless you’re specifically aiming for a four-star luxury resort asset, Caravelle represents the sweet spot of affordability and performance in the Myrtle Beach condo market.

Self-Management vs On-Site or Third-Party Management

One of the biggest decisions for a vacation rental investor is how to manage the property. At Caravelle, you have three main options: join the on-site rental program, hire an off-site property manager, or self-manage (list it on Airbnb/VRBO yourself). Each approach has its pros and cons for your bottom line and hassle factor. Let’s break them down:

1. On-Site Rental Management (Caravelle Rental Program): Caravelle Resort has an in-house management company (affiliated with the resort front desk) that will handle renting your unit like a hotel room. This is the most “hands-off” option – they do all marketing, guest check-in, cleaning, maintenance, etc. The trade-off is a hefty commission, often around 40%–50% of the gross rental revenue (common for hotel rental programs). The exact split can vary; some owners report closer to 50%. Additionally, on-site programs may charge for things like cleaning or maintenance separately. On the plus side, your guests typically get full access to all resort services, daily housekeeping, free breakfast (if offered), etc., which can lead to satisfied guests (but those perks are essentially financed by the high commission you’re paying). If you live far away and truly want a “mailbox money” investment, on-site management can be worth it for the convenience – just realize your net income will be roughly half of gross. Many investors eventually switch out of on-site once they see the potential of other methods, but it’s there as an option and can be good for those who prioritize zero involvement.

2. Third-Party Off-Site Property Management: There are numerous local vacation rental management companies (e.g. Elliott Beach Rentals, Vacasa, local Realtors) that will manage Caravelle units. These companies usually charge a lower commission than on-site – often around 20–30% of gross rents (some even as low as 20%). They will handle online listings, guest communication, cleaning coordination, and so forth. Your guests would either check in at an off-site office or use keyless entry, and these managers take care of problems that arise. The benefit here is a higher owner payout (you keep ~70–80% of rents vs ~50% with on-site). The downside is that guests won’t get the daily maid service or front desk support; however, in the Airbnb era many guests are fine with that. Companies like Elliott or Vacasa have marketing reach and dynamic pricing tools to keep your unit booked. They also can sometimes negotiate better cleaning fees or repairs due to scale. For an owner who doesn’t want to field midnight phone calls but also doesn’t want to sacrifice half the income, a trusted third-party manager is a middle-ground solution.

3. Self-Management (Airbnb / VRBO): Increasingly, Caravelle owners are choosing to self-manage their rentals on platforms like Airbnb, VRBO, or Booking.com. This approach maximizes your income – you keep essentially all the rent, minus small platform fees (~3% on Airbnb for hosts, ~8-15% paid by guest). There’s no management commission, which can boost net income by 20-50% compared to other methods. However, you take on the responsibilities: creating an enticing listing with professional photos, setting and adjusting rates, communicating with guests, handling check-in (often via smart lock or front desk arrangement), coordinating cleanings and maintenance, and addressing any guest issues or questions personally. Self-management is practically a part-time job, especially if you have many bookings, but many investors find it very rewarding financially. The example of the 1BR that grossed $34k in 2023 was self-managed (Airbnb) and netted around $29k after the platform’s fees – compare that to if it was on-site, the owner might have only netted ~$17k. That’s a huge difference. Owners who self-manage also tend to keep a closer eye on their unit’s condition, ensuring it stays updated and earns great reviews.

Which to choose? It depends on your personal situation and goals:

• If maximizing ROI is your top priority and you have the time or willingness to learn, self-management will yield the highest returns. You can also hybridize – some owners self-manage during high season and block off slow months (or give to a manager for off-season). Just remember to get a reliable cleaning crew and have local contacts for emergencies since you’re not on-site.

• If you want strong income but don’t want to be “on call,” a third-party manager at ~20% fee can be a good compromise. Vet them carefully – see if they already manage units at Caravelle and ask about their occupancy and reviews.

• If you simply want a hassle-free investment and are okay with a smaller slice of the pie, the on-site program will handle everything. The Caravelle on-site team markets heavily and keeps the property busy. They tout that they “protect your investment 365 days a year” and have staff on-site 24/7 for guests. For some owners, that peace of mind is worth the cost.

Important: No matter which route, ensure you have a City of Myrtle Beach business license for short-term renting (required for all STR properties) and that you or your manager remit the appropriate hospitality and accommodations taxes on the rental income. Most on-site/third-party managers do this for you. If you self-manage, Airbnb/VRBO now collects and remits state/county taxes in SC, but city tax may be on you to file – just an extra tip to stay compliant.

Lastly, consider that guest experience and reviews can differ based on management. On Airbnb, travelers expect prompt communication and a personal touch. On-site-run guests might be treated more like hotel guests. Both can earn good reviews, but consistency is key. One Airbnb listing at Caravelle notes how an exceptional host with great communication got 5-star check-in and cleanliness ratings, which helps drive more bookings. If you self-manage, aim for that Superhost status by being responsive and proactive with guest needs.

Amenities, Guest Experience & Review Management

Owning a unit at Caravelle means you’re not just selling a place to sleep – you’re selling a vacation experience. Satisfied guests lead to repeat bookings and great reviews, which in turn drive higher occupancy and the ability to charge premium rates. Here are some insights on leveraging Caravelle’s amenities and managing the guest experience to maximize your ROI:

• Highlight the Amenities in Your Marketing: Caravelle’s plethora of pools, lazy river, and beachfront access are big selling points. Make sure your listing description and photos showcase these. Mention “guests have access to indoor/outdoor pools, a lazy river, hot tubs, a game room, and on-site dining” prominently. Many travelers filter specifically for resorts with a lazy river or kiddie pool – Caravelle has them all. Including an attractive photo of the pool deck or ocean view from your balcony can significantly boost your listing’s appeal (often the resort’s marketing department or other owners have stock photos you can use with permission, or take your own high-quality shots on a sunny day). Basically, sell the resort lifestyle, not just the unit. Guests have commented positively on Caravelle’s amenities in reviews (e.g., “Good amenities. Great location. Rooms are nice.”) – and you want future guests to feel the same.

• Unit Renovation & Decor: In such a competitive rental market, updated units outperform dated ones. If your condo still has 1990s floral bedspreads and old carpet, consider investing in upgrades. Simple improvements like installing durable LVP flooring, fresh coastal paint colors, modern light fixtures, and granite or solid-surface countertops go a long way. One Caravelle listing was “beautifully updated with new luxury vinyl plank flooring and stylish, modern furnishings” – this not only helped it rent more but also supported a higher resale price. Guests will mention in reviews if the unit feels clean, modern, and exactly as pictured. High guest ratings for decor and cleanliness can elevate your property above others. Importantly, renovated units often justify slightly higher nightly rates and tend to get booked first in a head-to-head search. Thus, money spent on improvements can come back as higher revenue and potentially higher resale value. If buying a unit, look for one already updated (saves you the effort) or budget some renovation funds into your acquisition plan.

• Professional Photography: This cannot be overstated – great photos drive bookings. Invest in professional photos for your listing, or at least use a good camera to take bright, wide-angle shots of each space, plus the view. Stage the unit nicely (make the bed with attractive linens, set out a bottle of wine or a tray on the balcony). The competition on Airbnb/VRBO is stiff; listings with crisp, high-resolution images and good lighting will grab attention. If you check Caravelle listings, the ones with the most bookings usually have gorgeous photos of the ocean view from the balcony and well-lit interiors showing a clean, beachy vibe. This is a relatively small investment that can yield big returns in increased occupancy.

• Dynamic Pricing Strategy: Pricing your unit is both an art and a science. You want to maximize rates in high season but also fill your calendar in slower periods. Tools like Airbnb’s smart pricing or third-party pricing tools (Wheelhouse, PriceLabs, etc.) can help adjust rates daily based on demand. Some Caravelle hosts offer discounted weekly stays to entice longer bookings (e.g., “WEEKLY STAYS ARE DISCOUNTED” is a note one VRBO listing makes). This can be wise – a one-week booking (even at a slight discount) is preferable to 3 separate short stays with more cleaning turns. Also consider requiring a 2-3 night minimum in peak season to avoid too many one-night gaps, but in off-season, allowing 1-night stays or deep discounts for week+ stays can capture snowbirds and weekend travelers. Keep an eye on local events – when there’s a big festival or sports tournament in town, demand spikes and you can raise rates. Conversely, during cold winter weeks, drop the price or offer monthly rates to at least cover HOA costs. Responsive pricing ensures you’re not leaving money on the table nor sitting vacant due to being overpriced.

• Guest Communication and Reviews: How you manage guest interactions will directly affect your reviews and thus your future revenue. Prompt, friendly communication from the moment of inquiry or booking sets the tone. Many Caravelle Airbnb hosts have achieved Superhost status by responding to messages quickly (within minutes or an hour), providing detailed check-in instructions, and checking on guests shortly after arrival. A little personal touch – like a welcome message or a binder in the unit with local recommendations – can earn you that 5-star hospitality rating. It’s important to set accurate expectations: if guests booked via Airbnb, make sure they know they’re staying in a privately managed condo within a resort, and inform them how to get extra towels or who to call if something malfunctions. As noted, mention if certain hotel-like services (like the on-site gym or pool towels) might not be available to them – transparency avoids disappointment. For instance, an Airbnb host clearly noted the tiki bar access rules to prevent confusion. Most guests appreciate honesty and will rate based on what was promised.

After check-out, encourage reviews subtly (Airbnb auto-prompts guests, but a polite note in your checkout instructions like “We hope you enjoyed your stay! Safe travels home, and if there’s anything we can improve please let us know – a 5-star review is always appreciated if you loved the condo!” can nudge happy guests to leave feedback). High average ratings (aim for 4.8+ out of 5) will boost your listing in search results and enable you to charge top-tier rates.

• Management of Cleanliness & Maintenance: Quick turnovers and spotless rooms are the norm in hotel resorts, and your unit should aspire to the same. Using the resort’s cleaning service or a reputable cleaning crew is vital. A single negative review about cleanliness can hurt bookings until it’s buried by positives. Regular deep cleans and preventative maintenance (HVAC servicing, replacing that dripping faucet, touching up paint scuffs) will not only keep reviews glowing but also protect your property’s long-term value. Some owners schedule an off-season week to come stay in their unit, experience it as a guest, and fix any issues they find – a great practice to ensure quality.

By maximizing guest satisfaction, you effectively create a virtuous cycle: great stays lead to great reviews, which lead to more bookings (often at higher prices), which lead to higher income and a better ROI. Caravelle provides the amenities and location; as an owner, you provide the comfortable, hassle-free experience within your condo. Marrying those together results in a successful investment that pays dividends financially and in personal pride.

Historical Market Trends and Unit Appreciation

While cash flow is the primary focus for many Caravelle investors, it’s worth commenting on the historical appreciation and asset value trends of these condos. Understanding where values have been can help set expectations for the future.

2006 Conversion and Aftermath: When Caravelle converted from a hotel to condos in 2006, units were sold at peak market prices (the mid-2000s condo boom). Unfortunately, many early buyers saw values drop during the late-2000s housing crash. By around 2010, oceanfront condo-tel units in Myrtle Beach were at rock bottom prices – some Caravelle efficiencies reportedly sold for well under $70K, and 1BRs under $100K in short sales/foreclosures. Investors who bought at the bottom did very well, as the market slowly recovered in the 2010s.

2015–2019 Steady Growth: Through the mid-2010s, Caravelle condos appreciated gradually. The resort did a complete interior renovation in 2018 (per BeachPro Team info), which upgraded many units and common areas, helping boost desirability. By 2019, 1BR units that might have been $90k in 2012 were selling around $130k–$150k. Studios climbed back into the ~$80k–$100k range. So there was steady, if not spectacular, appreciation – largely tracking the broader real estate market and increased tourism.

2020–2022 Pandemic Era: COVID-19 initially halted travel in 2020, but by mid-2020 and certainly by 2021, a boom in domestic travel and short-term rental demand sent condo prices upward. Many people discovered Myrtle Beach as a drive-to vacation, and investors armed with cheap interest rates started buying STR condos heavily in 2021. Caravelle units saw a significant jump in pricing. For example, an oceanfront 1BR that might have been ~$140k in 2019 could fetch $170k–$180k by late 2021. In 2022, some units even crossed the $200k mark, especially if remodeled. Studios pushed past $120k in some cases. Essentially, from 2020 to 2022 Caravelle condos likely appreciated on the order of 20–30% (rough estimate), in line with the hot housing market and renewed interest in income properties.

2023–2024 Market Cooldown: In 2023, with interest rates rising and some normalization of travel, the market for condo-tels cooled slightly. Prices at Caravelle stabilized. We’ve seen 1BR units generally selling in the high $100s (the fact that multiple are listed around $175–$200k suggests that’s the market-clearing range). Some examples: A unit (#1536, 1BR) sold for $169,000; another (#1235, 1BR) sold at $220,000 after 71 days on market – that higher price likely due to superior condition or view. Small studios have been selling around $115k as evidenced by recent closings in April 2025. So values have held and even inched up in some cases. The average price per square foot for recent sales is in the low $300s (e.g. ~$308/ft² on average), which shows the strength of demand for beachfront property.

Looking Forward: Will Caravelle condos continue to appreciate? While no one can predict the market with certainty, Myrtle Beach remains a growing tourist destination, and oceanfront land is limited. The appeal of an affordable condo with income potential means there’s a built-in floor to value (investors will step in to buy if prices dip too much, buoying the market). We likely won’t see runaway appreciation year-over-year; instead, expect moderate growth in line with general real estate trends and rental income trends. One factor to watch is financing – condotel loans are specialized (often 20-25% down), and higher interest rates can dampen what investors will pay. Many current buyers are cash or 1031 exchange buyers less sensitive to rates.

Importantly, consider that your rental income essentially “pays you” while you hold the asset, so even if the condo value only rises slowly, you’re gaining cash returns yearly. If the unit appreciates 3% per year and you’re netting 8-10% cash-on-cash returns from rents, that’s a combined return in the low teens, which is quite solid. And there’s always the chance of another upcycle in the condo market if interest rates fall or STRs gain further popularity.

For a bit of historical perspective: Had you bought a Caravelle 1BR in 2015 for, say, $100k, it might be worth ~$175k now in 2025 – a 75% increase over 10 years (not bad), plus you’d have collected likely over $150k in gross rental income in that period. This illustrates why many view these not just as rentals but also as part of their retirement nest egg (hence those rolling over 401k funds). You get the dual benefit of income and long-term asset appreciation, however modest the latter might be in the short run.

Tips for Maximizing ROI at Caravelle

To wrap up, let’s compile some actionable tips for maximizing your return on investment with a Caravelle Resort condo:

1. Buy the Right Unit: Not all condos are equal. Look for units with direct oceanfront views (these rent better than oceanview or boulevard view), and as high up as possible – higher floors often command higher rates due to better views. If possible, choose a unit that is already renovated or priced low enough that you can afford to renovate. A unit with a washer/dryer (if any Caravelle units have them) or other unique features could stand out. Also, verify the rental history if available – it’s great to see a track record. But even an under-performing unit can be turned around with improvements and good management.

2. Invest in Upgrades with High ROI: Focus on upgrades that attract guests and good reviews. Keyless entry locks, reliable high-speed WiFi (the HOA provides internet, but make sure the in-unit WiFi is strong), comfortable beds with quality mattresses, and a well-equipped kitchenette can all boost guest satisfaction. Small touches like smart TVs with Netflix, a Keurig coffee maker, or beach chairs/toys for guest use can earn you brownie points in reviews. When guests feel “this condo had everything we needed and more,” they’re likely to come back or recommend it. Happy guests = better ROI.

3. Optimize Listings with SEO and Dynamic Content: Just as we’ve written an SEO-optimized article here, do the same for your rental listing description! Use keywords travelers search for: “Myrtle Beach oceanfront condo with pools,” “family-friendly resort,” “Caravelle Resort condo rental,” etc., to improve your visibility on listing sites. Update your listing regularly (the algorithm likes active owners). Also, keep an up-to-date availability calendar and consider using instant booking – listings that guests can book immediately often rank higher on Airbnb.

4. Competitive Pricing & Promotions: Price competitively, especially when starting out or in off-peak times. It’s better to secure a booking at a slightly lower rate than to have the unit sit empty earning nothing. As mentioned, offer discounts for weekly or monthly stays, and highlight those in your listing (“Book 7+ nights for 10% off”). Run promotions in the off-season – for instance, “Snowbird Special: 30% off monthly stays Nov–Feb!” to attract winter renters. Also, don’t be afraid to raise prices for high-demand periods (summer weekends, 4th of July week, etc. – many owners actually underprice these). Research comparable listings in Caravelle and nearby resorts each season so you know the market rate.

5. Use High-Impact Photography and Captions: We touched on this, but to reiterate – your first photo should be stunning. Often a balcony shot of the ocean or a shot of the beautiful pool with the ocean behind it can stop scrollers in their tracks. Add captions to your photos on VRBO/Airbnb to call out features (“Spacious oceanfront balcony – perfect for morning coffee!”). Consider adding a short video or 360° virtual tour if the platform allows – this can increase engagement and bookings.

6. Leverage Guest Reviews & Feedback: Encourage guests to leave reviews, and then actually use that feedback. If multiple guests mention something like “the AC was a bit loud” or “could use more pillows,” take action to fix or improve it. Respond to reviews professionally – thank guests for positive comments, and politely address any negatives and explain how you’ll improve. This shows future potential bookers that you’re a responsible host. A history of responsive hosting and improvements can also justify gradually higher nightly rates over time.

7. Maintain the Unit Proactively: Fast-track any maintenance issues – a malfunctioning appliance or a leak can earn a scathing review if not addressed. It’s wise to have a local handyman or maintenance service on-call. Sometimes the resort maintenance can handle small issues for a fee even if you’re not in their rental program (worth checking). Keeping your unit in top shape not only prevents bad reviews, it preserves the value of your asset.

8. Network with Other Owners/Hosts: Join owner groups or forums (there are Facebook groups for Myrtle Beach rental owners) to swap tips specifically about Caravelle. Fellow owners might share which cleaners they use, how they handle the “tiki bar access” question, or suggest good pricing strategies. For example, an owner in a forum might say “We purchased our first Caravelle unit in 2023 and found a great Airbnb ambassador to help ramp up bookings” – insights like that can shortcut your learning curve. Being part of the community can help you maximize returns faster.

9. Consider Tax Advantages and Financing: Consult with a CPA on how to take advantage of any tax benefits. Rental properties can have deductions for depreciation, HOA fees, property taxes, etc., which can improve your after-tax ROI. Some investors even use self-directed IRA or 401k funds to purchase (with special structures) – if you’re in that boat, get professional advice to do it correctly. Also, if you finance the condo, shop around for lenders experienced with condotels – a better interest rate or lower down payment (some do 20% down for strong borrowers) will improve your cash-on-cash return.

By implementing these strategies, you can turn a modest Caravelle condo into a high-yield rental machine. Many newcomers have been able to transform their unit’s performance by simply applying best practices from the vacation rental industry. The opportunity is there – Caravelle supplies the location and amenities, and with your smart management, the ROI can truly be maximized.

Conclusion: Is The Caravelle Resort a Good Investment?

In conclusion, The Caravelle Resort in Myrtle Beach offers a compelling opportunity for short-term rental investors – especially those looking for a combination of affordability, steady cash flow, and a hands-on role in managing a vacation rental. We’ve seen that Caravelle condos are relatively inexpensive to acquire (with options well under $200k) and have proven rental income potential in the mid-five-figures annually, provided they are well managed.

For first-time investors, Caravelle provides a manageable entry into the STR market: you get a turnkey resort environment that attracts guests on its own, plus flexibility to choose your management style. It’s quite feasible to cover all carrying costs (HOA, taxes, etc.) and still generate positive cash flow, even as you learn the ropes of marketing and hosting. The fact that many owners are buying units via retirement accounts or as small business investments speaks to the confidence in the revenue stream – this isn’t just a vacation home, it’s an income-producing asset.

Of course, like any investment, there are considerations and risks. High HOA fees require careful planning. The STR market can be competitive (you’ll need to be an attentive host or hire someone who is). And while Myrtle Beach’s tourism is strong, broader economic factors can affect travel demand year to year. That said, Caravelle’s long track record – decades of vacationers and a recently refreshed property – gives it durability. It weathered past downturns and came out thriving.

In comparing Caravelle to other options, it often boils down to your investment style: If you seek a relatively low-cost, high-yield rental with the willingness to be involved (or to find the right people to help), Caravelle is hard to beat. If you wanted a pure appreciation play or something ultra luxury, you’d look elsewhere (and pay a lot more). But many investors find Caravelle hits the sweet spot for generating significant rental income from a modest investment.

To answer the question “Is it a good investment?” – the answer is yes, for many investors it has been and continues to be. A Caravelle condo can produce strong cash-on-cash returns, diversify your portfolio into real estate, and even provide personal enjoyment (block off a week for your own beach vacation, effectively “free” since your renters cover the expenses). By focusing on factual data – like the 2023/2024 rental figures and the current market pricing we covered – you can make an informed decision and set realistic expectations.

The key is to approach it as a business: buy right, manage smartly, and continuously improve. Do that, and The Caravelle Resort could very well become the crown jewel of your investment portfolio – a property that pays you to own a piece of paradise. As always, perform due diligence, perhaps consult with local real estate professionals and accountants, and then dive in. Myrtle Beach’s shoreline isn’t getting any longer, and owning an oceanfront rental is a dream that can also make solid financial sense.

Sources:

• Current MLS Listings – Caravelle Resort (Active listings as of May 2025)

• Piece of the Beach Realty, Unit 734 Listing (Rental income 2023 & 2024 YTD)

• JP Real Estate, Unit 837 Listing (2023 Gross Rental $34,805)

• MyrtleBeachCondoForSale.net – Caravelle Resort Overview (Location, amenities, rental demand)

• BeachProTeam Market Report – Recent Caravelle Sales (Pricing trends)

• Airbnb and VRBO Listings – Guest Review Highlights (demand, ratings)

• Zillow/CCAR MLS – Unit 614 Listing (HOA fee, listing description)

• Homes.com (MLS Data) – Ocean Reef Resort Unit (HOA inclusions, 2024 YTD income)

• B2 Vacations – Property Management Rates (example of 20% commission model)

• Traci Miles Real Estate – Caravelle Units for Sale (unit details, HOA, remarks)

Each of these sources reinforces aspects discussed – from actual rental incomes to HOA coverage to guest sentiments – providing a factual backbone to our investment analysis. With this information in hand, you can proceed confidently in evaluating a Caravelle Resort condo for your investment goals. Here’s to your potential success in turning a slice of Myrtle Beach into a profitable piece of your financial future!

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.