Cedar Ridge I (North Myrtle Beach) – 2023–2024 Investment Performance Analysis

Property Overview: Cedar Ridge I, North Myrtle Beach

Location & Community: Cedar Ridge I is a small 12-unit condominium complex located on South Ocean Boulevard in the Windy Hill section of North Myrtle Beach, SC. It sits second-row (one row back from oceanfront) with easy beach access – a public beach walkway is just across the street. The complex was built in 1984 and consists primarily of 2-bedroom, 2-bath condo units (~1,000–1,100 sq ft each). Its location is prime for vacationers: about 1.7 miles from the popular Barefoot Landing entertainment complex and 4 miles from Main Street in North Myrtle Beach, providing both a quiet beach area and quick access to restaurants, shops, and attractions.

Short-Term Rental Friendly: Importantly for investors, Cedar Ridge I permits short-term vacation rentals (nightly/weekly). Owners can rent units on platforms like Airbnb, VRBO, etc., without HOA restriction. (The local zoning is multi-family “MF” which, combined with HOA approval, allows transient rentals.) One recent listing even highlighted that “short-term rentals are allowed,” making it an attractive option for Airbnb-minded buyers. This flexibility means owners can capitalize on the busy tourist seasons rather than being limited to long-term tenants.

HOA Policies & Fees: Cedar Ridge I’s homeowners association has relatively low dues for the area – about $500 per month. These HOA fees cover common area upkeep, building insurance, water/sewer, trash pickup, basic cable, and other amenities. Notably, the HOA allows golf carts and motorcycles for owners, which is a perk in a beach town (many communities prohibit them). There is no elevator or pool on-site – it’s a simple low-rise building with parking and balconies. The lack of extensive amenities helps keep the HOA fee modest, which improves net ROI (more on this below). Owners are required to obtain a city business license to operate short-term rentals and, as of 2025, North Myrtle Beach is considering new ordinances requiring a local 24/7 contact for STR properties – prudent investors should stay abreast of these regulations, but they apply citywide, not just to Cedar Ridge I.

Short-Term Rental Performance (2023–2024)

If you’re focusing on short-term rentals at Cedar Ridge I, the performance metrics from 2023 (and into 2024) are encouraging. Being a second-row 2BR beach condo, Cedar Ridge I strikes a balance between lower costs and solid rental income potential. Below we break down the gross and net rental income expectations by unit type:

Gross & Net Rental Income by Unit Type

In Cedar Ridge I, all units are 2-bedroom condos, but for context we’ll compare 2BR performance and also note 3BR figures for similar properties in North Myrtle Beach.

Notes: Cedar Ridge I units are all 2BR, so 3BR figures are provided only for broader market comparison. In 2023, the average 2-bedroom rental across the Myrtle Beach area grossed about $22.5K–$33K and ~146 rented nights. Well-managed beach condos in desirable spots can exceed this range. For example, a 2BR oceanfront unit at Beach Colony Resort grossed $47K–$55K in 2023 (with the top unit earning $72K) – a testament to what oceanfront can do. As a second-row property, Cedar Ridge I’s gross income typically falls in the mid range, often around $25K–$35K per year for an actively rented 2BR. Seasonality is a huge factor: roughly 50–60% of annual revenue comes from the peak summer months of June–August (when occupancy approaches 90–100% and nightly rates soar).

2024 Trends: The 2024 rental season showed continuity with 2023. Demand remained strong thanks to sustained tourism to the Grand Strand. Occupancy rates in North Myrtle Beach hovered around 50–60% annually on average, with many hosts pushing to improve that. (One vacation rental analytics source reported an average ~57% occupancy and ~$341 average daily rate in NMB, though that figure skews high due to larger oceanfront houses – typical 2BR rates are lower.) In dollar terms, the average North Myrtle short-term rental earned about $39K–$50K in 2023 depending on data source, and 2024 appeared on par or slightly up by year-end. For a Cedar Ridge 2BR specifically, owners should expect similar gross in 2024 as in 2023, assuming no major market disruptions – a well-furnished unit with aggressive marketing could still target around $30K+ gross for the year.

Net Income: To estimate net income, we subtract expenses from the gross. Cedar Ridge I’s relatively low HOA fee ($6,000/year) is a big advantage – many oceanfront condos carry $10K+ in annual HOA dues, eating into profits. Other expenses include property management or platform fees (typically 20–25% of gross for full-service management, or ~3% for DIY via Airbnb/Vrbo fees), cleaning and maintenance, insurance, and property taxes. For example, if a unit grossed $30,000 in rental revenue in a year, you might deduct: ~$6,000 HOA, ~$6,000 (20%) management, ~$1,500 taxes, ~$800 insurance, and maybe $1,000 misc. That leaves roughly $14K–$16K net income (before any mortgage payment). An owner managing bookings themselves could net closer to $18K (saving management fees). In percentage terms, net income often comes out to ~50–60% of gross for self-managed units, or ~40–50% if using a rental agency. Given a ~$250K purchase price, a $15K net yield represents about a 6% cap rate – which is quite respectable for beach real estate. Higher leverage (mortgage financing) would reduce cash flow but potentially increase cash-on-cash returns.

It’s also worth noting the alternative: long-term rental income. If Cedar Ridge I did not allow short-term rentals, an investor would be limited to 6–12 month leases. Typical 2BR annual lease rates in North Myrtle Beach are around $1,600–$1,800 per month (Zillow’s Rent Zestimate for a Cedar Ridge unit is ~$1,748/mo). That equates to ~$20K/year gross. After HOA and landlord costs, the net might be ~$10K – clearly lower gross and net than the short-term approach, though steadier and with far less turnover. Fortunately, at Cedar Ridge I you have the option to pursue the higher-gross short-term strategy for maximum income.

Comparison to Nearby Investment Properties

How does Cedar Ridge I stack up against other North Myrtle Beach properties for investors? We’ll compare it to similar second-row condos and to oceanfront resorts in terms of price, rental performance, and ROI.

• Second-Row Condo Comparison – Channel Marker: One analogous property is Channel Marker, a second-row condo complex in the Cherry Grove section of North Myrtle Beach. Like Cedar Ridge, it’s a low-rise building just across the street from the ocean, consisting of 2BR/2BA units. Channel Marker has 18 units and even features a small swimming pool on-site (Cedar Ridge I does not have a pool). Recent 2BR listings at Channel Marker have been in the mid-$200s (e.g. a unit listed at $245K), similar to Cedar Ridge’s pricing. Rental income: Both Channel Marker and Cedar Ridge 2BR units cater to the same vacationer profile – families or couples seeking a beach stay at a lower cost than oceanfront high-rises. Gross rental for a 2BR at Channel Marker is in the same ballpark ($25K–$35K/year). The pool amenity at Channel Marker might allow slightly higher peak rates or occupancy, but the difference is not dramatic; proximity to the beach is the primary driver for both. One Channel Marker listing boasts “a view of the ocean” from its balcony – Cedar Ridge units also have partial ocean views from balconies, since they are on the second row with no tall building directly in front. HOA fees: likely similar range; Channel Marker’s HOA was not quoted here, but small buildings generally have fees ~$400–$600/mo, comparable to Cedar Ridge’s $500. Bottom line: Cedar Ridge I and Channel Marker offer very similar ROI profiles. Investors might choose Windy Hill (Cedar Ridge) vs Cherry Grove (Channel Marker) based on personal preference: Windy Hill is closer to hubs like Barefoot Landing and has a slightly more central location, while Cherry Grove has a more laid-back vibe near the inlet and fishing pier. Both areas are popular with renters – Windy Hill might get more golfers and offseason event visitors due to nearby attractions, whereas Cherry Grove attracts repeat family vacationers who love the north end.

• Oceanfront Condo Comparison – Beach Cove Resort: For a contrast, consider Beach Cove Resort, an oceanfront high-rise in Windy Hill (just a few blocks from Cedar Ridge I, but directly on the beach). Beach Cove offers 1BR, 2BR, and 3BR oceanfront units with extensive amenities (pools, hot tubs, tiki bar, etc.). Rental performance: As expected, oceanfront units command higher rents. A 3BR at Beach Cove grossed around $69K–$71K in 2023, with the top unit at $76K – roughly double the gross of a 2BR second-row. Even 2BR units in popular oceanfront resorts like Bay Watch or Beach Cove often gross $40K–$60K in a good year. However, costs and prices are higher: Oceanfront 3BR condos at Beach Cove run ~$465K–$480K, and 2BR units typically cost upwards of $300K depending on age/updates. HOA dues for a full-service resort can be $800–$1,000+ per month (to maintain pools, elevators, front desk, etc.). This means net income margins are slimmer on those high grosses. For example, if an oceanfront 2BR grosses $50K but has $12K HOA and 30% management fees, the net might be $23K – not far off from the ~$18K net of a Cedar Ridge unit that grossed $30K with $6K HOA. ROI: As an investor, Cedar Ridge I can actually offer a comparable cap rate because of the low carrying costs, even if the absolute rental income is lower. The entry price is also lower, lowering the barrier to investment. In summary, oceanfront vs second-row is a classic trade-off: oceanfront will earn more and appreciate strongly long-term (due to limited supply of true oceanfront land), whereas second-row like Cedar Ridge I has a better cash-flow ratio and often less volatility in expenses (no costly amenity upkeep or high insurance premiums for oceanfront exposure). Many investors find second-row condos a sweet spot for reliable income.

• Other North Myrtle Beach Properties: North Myrtle Beach has a mix of condo types – from high-rise towers to townhouse-style condos to single-family homes. In the same price range (~$250K), an investor could consider options like Ocean Drive area low-rise condos (some allow short rentals, some don’t), or even small beach cottages further from the ocean. Compared to those, Cedar Ridge I stands out by being walking distance to the beach (not all $250K properties are), which is crucial for strong short-term rental demand. A property west of Highway 17 or several blocks from the ocean might only attract long-term tenants or snowbirds at lower rents. Thus, Cedar Ridge’s location provides a competitive edge. On the other end, luxury oceanfront developments in North Myrtle (like North Beach Plantation towers, or Mar Vista Grande) target a different investor segment – much higher price points ($500K+ units) with upscale amenities and management programs. Those can yield higher dollar income but lower percentage returns and often cater to buyers seeking some personal use of a high-end vacation home. By comparison, Cedar Ridge I is a pure investment play: a no-frills beach condo where you’re essentially buying the location and the rental cash flow.

Renovation ROI & Upgrade Strategies

Many Cedar Ridge I units have been recently updated by owners to enhance rental appeal and value. Since these condos were built in the mid-80s, strategic renovations can yield a high return on investment both in terms of higher rental income and eventual resale value. Here are some observations and strategies:

• Interior Updates Boost Income: Modernizing a unit can significantly improve its rental performance. Renters browsing online listings will gravitate to units with fresh, clean decor and modern amenities. In Cedar Ridge I, one unit was described as “beautifully renovated” with luxury vinyl plank flooring, fresh carpeting, granite countertops, updated light fixtures, and a newer HVAC. These upgrades not only make the property more attractive in photos (driving higher occupancy), but also justify a higher nightly rate. An upgraded kitchen with stainless appliances and granite can increase a unit’s rental rate by 5-10% over an outdated one, according to local property managers, because guests perceive it as a “premium” unit.

• ROI on Renovations: The cost to fully update a 2BR condo (new flooring, paint, modern furnishings, updated kitchen and baths) might run $15K–$25K depending on scope. Owners often see this pay off within a few years. For example, installing durable LVP flooring and repainting (cost ~$5K) can immediately reduce wear-and-tear costs and earn better reviews from guests citing “clean, updated unit.” Even more, it can bump the nightly rate by perhaps $10-20 in peak season. Over 100+ rented nights, that’s $1,000–$2,000 more revenue per year – a 20–40% ROI on that basic upgrade. Bigger investments like new kitchen cabinets or a bathroom remodel might be done less for pure rental ROI and more for adding resale value (and avoiding any negative guest feedback about dated fixtures). Overall, given Cedar Ridge’s attainable price point, putting a few percent of the property value into improvements is often a smart move to maximize income. As one renovation-focused site notes, a “complete overhaul isn’t necessary” – even targeted improvements like new countertops or adding a washer/dryer can markedly increase rental appeal.

• Furnishings & Decor: Because these are sold as condos (often sold furnished), having tasteful, coastal-themed furnishings in good condition is part of the package that attracts renters. Investors should budget to replace or update furniture every so often. Offering comfortable, newer bedding and sofas, adding a smart TV and high-speed WiFi, and providing simple beach-friendly decor (light colors, wall art, etc.) all contribute to positive guest experiences. These “soft” upgrades reflect in reviews – guests frequently mention when a rental is “well-furnished” or “felt like home.” Cedar Ridge I units that are advertised as “fully furnished… with open floor plan and tons of natural light” have an edge in marketing. Ensuring that description remains true by keeping the unit updated is key to maintaining high occupancy.

• Amenities & Tech: While Cedar Ridge I can’t add amenities like a pool or gym without HOA-wide initiative (unlikely due to space), individual owners can enhance the guest experience in smaller ways. Consider installing a keyless entry lock (so guests have a smooth check-in), providing beach gear (chairs, umbrella, a wagon – these little touches often earn great review comments), or even adding an owner’s guide with local recommendations. Smart home features like a smart thermostat or noise monitor (to ensure guest compliance with quiet hours in a small building) can protect the property and improve efficiency. None of these are very costly, but they show an attentive host/owner, resulting in better feedback and potentially the ability to charge a bit more than a bare-bones rental. In summary, thoughtful upgrades and amenities directly correlate with both higher rental rates and stronger guest loyalty (repeat bookings), which is a big plus for ROI.

Guest Experience and Reviews Summary

Because Cedar Ridge I welcomes short-term vacationers, maintaining a positive guest experience is crucial for sustained income. So far, guest feedback for units in Cedar Ridge I (as seen via Airbnb/VRBO comments and rental manager notes) has highlighted several consistent themes:

• Positives: Location, location, location. Guests love that they can walk a few yards and be on the beach, without paying oceanfront prices. Many mention enjoying the ocean view from the balcony and the sound of the waves at night from this second-row spot. The building’s small size and quiet atmosphere are often cited as pluses – unlike large resorts, Cedar Ridge I is peaceful with a “close-knit community” feel. This is appealing for families and retirees who want a relaxing stay. Renters also appreciate when a unit is well-equipped; for example, having an in-unit washer/dryer, a full kitchen, reliable WiFi, and even board games or books for rainy days all have made positive impressions. Cleanliness and updated interiors come up frequently in good reviews – a freshly renovated unit will nearly always earn 5-star cleanliness ratings. Guests have also noted the convenient proximity of attractions (“close to everything” in North Myrtle Beach) combined with the tucked-away feel of Windy Hill. Being only minutes from golf courses, restaurants, and entertainment (like House of Blues or Alabama Theatre at Barefoot Landing) is a selling point, without the congestion of staying in central Myrtle Beach.

• Negatives/Drawbacks: The most common drawbacks stem from the limited on-site amenities. Some guests miss having a pool on the property or a fitness room – amenities they’d get at a big resort. However, many acknowledge they knew this going in, and often the beautiful beach just across the street makes up for it. Another occasional comment is about the stairs – Cedar Ridge I is a three-story walk-up with no elevator, so guests in top-floor units will be climbing stairs. Usually this is only a concern for those with mobility issues; savvy hosts will mention the floor level in listings to set expectations. Parking is ample but not covered (unlike some complexes with ground-level parking under the building). A minor point noted has been the lack of a BBQ grill or picnic area – again, due to the compact site. If a specific unit in the complex hasn’t been updated in a long time, guests might comment on dated decor or older appliances; this again underscores the importance of renovations for competitive rentals. Overall, Cedar Ridge I fares well in guest satisfaction – renters seeking a simple beach condo find it meets or exceeds expectations. The property’s quiet charm is in fact a differentiator: one professional rental agency describes Channel Marker (a similar property) as a “charming, quaint condo complex” with a homey feel, and the same description fits Cedar Ridge I. Many vacationers don’t want the hustle of a busy hotel; Cedar Ridge offers a more “home-like” beach stay, which is reflected in strong repeat bookings and word-of-mouth.

Guest Tip: As an owner, focusing on guest experience (responsive communication, a little welcome gift or note, and a detailed guide to the condo and area) can help maintain high ratings. High ratings lead to better visibility on Airbnb/VRBO and justify premium pricing. Cedar Ridge I’s setting already gives you a head start with guests – it’s up to the host to capitalize on it with great hospitality.

Investment Strategies for Acquisition & Ownership

Investors interested in Cedar Ridge I have several strategies to consider for purchase and ownership that can maximize financial benefits. Two popular approaches are using a 1031 exchange to acquire the property and using a self-directed IRA or 401(k) to purchase as part of a retirement portfolio.

1031 Exchange – Deferring Capital Gains Tax

Cedar Ridge I condos qualify as investment properties that can be bought or sold via a 1031 Exchange. A 1031 exchange (named for IRS Code Section 1031) allows real estate investors to defer capital gains taxes when selling one investment property and buying another “like-kind” property within a set timeframe. In practice, this means if you sell another rental property (say, a duplex or another condo) and have a profit, you can reinvest the proceeds into a Cedar Ridge I condo and pay no tax on the sale – the taxes are deferred into the new property. This is a powerful wealth-building tool: it preserves your equity, allowing you to roll the full pretax amount into the new investment, which in turn generates income.

Example: Suppose an investor sells a rental cabin for $250,000 that they originally bought for $150,000 – normally there’s $100K of taxable gain. By identifying a Cedar Ridge I condo as a 1031 replacement property, they could purchase it and defer the tax on that $100K gain entirely. The investor thus acquires the beach condo without the “tax haircut” and can start earning short-term rental income immediately.

A few rules to remember: To fully defer tax, the new property should be of equal or greater value than the one sold, and the exchange must follow a timeline (identify new property within 45 days of sale, close within 180 days). Also, the property must be held for investment – vacation condos do qualify, but you shouldn’t immediately use the new condo purely as a personal second home. Occasional personal use is allowed (the IRS safe harbor is that personal use does not exceed 14 days or 10% of rental days per year) so long as the primary intent is generating rental income. Cedar Ridge I would meet the “like-kind” requirement as long as the relinquished property was also an investment (which can be any real estate held for investment or business, per 1031 rules, not necessarily the same type or location). Many investors eyeing resort condos use 1031 exchanges to shift equity from one market to another or consolidate into a more profitable locale. If you have gains from, say, a property up north, swapping into a Myrtle Beach area condo via 1031 could both defer taxes and diversify your portfolio into a high-demand vacation rental market.

Self-Directed IRA/401(k) – Using Retirement Funds to Invest

Another strategy is purchasing the condo through a self-directed IRA or Solo 401(k). If you have substantial funds in a retirement account, you can direct those funds to buy real estate like Cedar Ridge I as an investment, enjoying tax-deferred (or tax-free, if using a Roth IRA) rental income accumulation. How it works: You set up a self-directed IRA with a custodian that allows real estate, then the IRA buys the condo and owns it. All rental income goes back into the IRA, and all expenses must be paid from the IRA’s funds. Over time, the rental profits grow tax-free inside the retirement account until you withdraw in retirement.

Key considerations and rules:

• No Personal Use: When your IRA owns the property, neither you nor any “disqualified persons” (generally close family like spouse, children, parents) can use it personally. It must be purely an investment held by the IRA. So you can’t vacation in your own condo if your IRA is the owner – doing so would violate IRS rules and incur penalties. This strategy is thus for pure investment purposes. Cedar Ridge I fits that bill, as it’s an income generator; you’d view it like stocks or any asset in your IRA, not a second home.

• All Income/Expenses Through IRA: The IRA must pay the purchase price (often IRA investors pay cash, though non-recourse loans are possible for IRAs). All rental income goes into the IRA account, and things like HOA fees, repairs, property taxes must be paid from the IRA funds, not your personal checking. One must maintain sufficient cash in the IRA to cover these. As one custodian summarizes: “Your SDIRA owns the investment property, and all related income and expenses must flow through the SDIRA.”.

• Tax Advantages: The rental income and any gains on sale go back into the IRA tax-deferred. This means if you hold the condo for, say, 10 years in a Roth self-directed IRA, all the rental income and appreciation accrued could be completely tax-free when you take qualified distributions. Even in a traditional IRA, you’d defer tax until withdrawal at hopefully a lower tax bracket. This can supercharge the compounding effect of reinvesting rental profits (e.g., using accumulated rent to buy another property or other investments in the IRA).

• Setup and Management: Setting up a self-directed IRA LLC or using a specialized custodian has some fees and complexity. You’ll want to work with a financial advisor or custodian experienced in real estate IRAs. Also note that if financing is used, there could be unrelated debt-financed income (UDFI) tax implications. Many IRA real estate investors simply buy property outright with IRA funds to keep it straightforward.

Using retirement funds can be an excellent way to diversify an IRA beyond stocks and bonds, especially if you believe in the Myrtle Beach vacation rental market. For example, someone with a $300K rollover IRA from a former job could form a self-directed IRA, purchase the Cedar Ridge condo for ~$250K, and still have reserve funds for expenses. All rental revenue would go back into growing the IRA. Over 15–20 years, the IRA would not only collect rental income (which could be reinvested in other assets or even additional properties), but also any property value appreciation, sheltered from current taxes.

Important: You cannot combine personal funds and IRA funds on the same investment (no commingling), and you should not try to manage the property in a way that provides you an immediate personal benefit. Professional management or arm’s-length operation is recommended to avoid any prohibited transactions. But overall, it’s a viable path that some investors use to acquire properties like Cedar Ridge I essentially with “pre-tax” dollars.

In conclusion, Cedar Ridge I presents a compelling case as an investment property in 2025. It offers the income potential of a beach vacation rental (with ~$25–$35K gross annual rents common for 2BR units) at a relatively low price and carrying cost, all while being in a prime North Myrtle Beach location. Short-term rentals are allowed and thriving, and investor-friendly strategies like 1031 exchanges and self-directed IRAs can be utilized to purchase and hold the property efficiently. When comparing to other options, Cedar Ridge I’s combination of low HOA fees, proximity to the ocean, and solid rental demand yields a healthy ROI for a hands-off investor. With smart upgrades and management, an investor can further boost returns and build significant equity (especially as North Myrtle Beach property values continue to appreciate with the strong market). Whether you aim to maximize cash flow or to grow your real estate portfolio for the long run, Cedar Ridge I stands out as a balanced investment opportunity – offering both vacation rental income today and coastal real estate upside for tomorrow.

Sources: Recent rental performance data and averages from 2023; property and HOA details from listings; comparative examples from nearby resorts; and regulatory/strategy insights from industry references. All listing links are via Oceanfront Commercial Group’s North Myrtle Beach real estate listings for accuracy and to provide the latest details.

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.