Great — I’ll compile a full investor case study on Crescent Keyes in North Myrtle Beach, SC, with a primary focus on short-term vacation rentals using 2023–2024 data. It will include gross and net income by unit type, cap rates, HOA policy details, renovation ROI, guest reviews from Airbnb/VRBO/Booking.com, and comparisons to nearby buildings. All listing links will direct to www.oceanfrontcommercialgroup.com.

Crescent Keyes North Myrtle Beach: 2023–2024 Rental Performance Analysis

Crescent Keyes is a 14-story oceanfront condo resort in North Myrtle Beach’s Crescent Beach section, built in 2005–2006. With fewer than 100 units, it offers a boutique atmosphere yet features amenities on par with much larger resorts. This makes it highly attractive for vacationers and investors alike. Short-term rentals are fully permitted (as are long-term leases), and the location—near popular attractions like Barefoot Landing—helps keep occupancy and rates strong year-round.

Rental Income by Unit Type (Gross & Net)

Investors are primarily interested in the rental income potential of Crescent Keyes condos. The development contains mostly 2-bedroom and 3-bedroom units, with a handful of 1-bedroom units (which rarely become available for sale). Below is a summary of typical rental performance by unit size, based on 2022–2024 data:

Gross rental income reflects the total rent collected before expenses. For example, recent actuals show a 2-bedroom unit grossing about $51,000 in 2023, and another 2BR grossed $45,580 in 2022. Some 2BR units have even exceeded $52,000 in a strong year. Three-bedroom condos can gross in the ~$50K range as well, though one 3BR with 2 baths grossed $40,757 in 2022 (indicating upside potential if better optimized). One-bedroom units are scarce in this building, but market data from similar resorts suggests they typically gross around $25–$30K annually in vacation rental income (given their lower occupancy limits).

Net income (after expenses) is of course lower. Owners must budget for: management fees (often ~20% for hands-off management), cleaning and supplies, utilities not covered by HOA, property taxes, insurance, maintenance, and the HOA dues. For instance, a 2BR grossing $50K might net on the order of $25–$30K after all typical costs, which corresponds to a cap rate in the ~5–6% range on a ~$500K purchase. Self-managing (or using Airbnb/VRBO with cleaning fees paid by guests) can improve net returns, sometimes pushing cap rates into the 7% range by saving on management commission. Larger 3BR units tend to have slightly lower cap rates because their higher prices aren’t fully offset by proportional rent increases – e.g. a $600K 3-bedroom might net ~$20K (3–4% cap) if not aggressively rented, though exceptional management could raise that. By contrast, a rare 1BR at ~$220K might net ~$15K, roughly a 6–7% cap rate, due to the lower entry price.

Long-term rental: Crescent Keyes does allow long-term tenants, but few owners choose a 12-month lease because the annualized income would be much lower than short-term rental potential. As a comparison, winter monthly rental rates for a 2BR at Crescent Keyes run around $1,830–$2,100 per month in the off-season – equivalent to only $22K/year if rented year-round at that rate. In reality, market-rate annual leases for a furnished oceanfront 2BR might be in the mid-$2,000s per month ($30K/yr), still well below what weekly summer rentals generate. Thus, most investors stick with the vacation rental model for maximum ROI.

HOA Fees, Inclusions, and ROI Impact

Like most oceanfront condo resorts, Crescent Keyes has substantial HOA fees that cover maintenance and amenities. HOA dues are roughly $600/month for 1BRs, $800/month for 2BRs, and $1,050/month for 3BRs (varying by unit size). These fees include a comprehensive bundle of expenses: building insurance, water/sewer, trash pickup, cable TV, internet, common area electricity, pool and grounds maintenance, pest control, and property management of the HOA itself. Essentially, many operating costs are baked into the HOA fee – a benefit in that owners don’t pay those separately, but it does create a high fixed cost that eats into rental revenue.

From an ROI perspective, the HOA fee can amount to roughly 20–25% of gross rents for a typical 2BR unit (e.g. ~$9.7K HOA vs. $45–50K gross income). This is a major reason why net income percentages are more modest than gross. However, the flip side is that the amenities and upkeep funded by HOA dues help drive the rental income in the first place – it’s a trade-off. The HOA at Crescent Keyes is well-run with no known special assessments currently, and it permits short-term rentals without extra fees (some condos charge additional resort fees to renters; Crescent Keyes does not). Long-term rentals are also allowed, giving owners flexibility to switch strategies. HOA rules do restrict pets to owners only (renters may not bring pets), which is common in resort condos. Overall, investors should factor the HOA into calculations carefully, but also recognize that the inclusive HOA coverage reduces variable cost uncertainties (for example, building insurance and WiFi for guests are already paid through HOA). High HOA dues are standard for oceanfront properties with extensive amenities – what matters is that those amenities bolster rental demand, which in Crescent Keyes they certainly do.

Amenities and Guest Reviews Driving Rental Demand

Crescent Keyes boasts resort-style amenities including an oceanfront swimming pool, indoor pool, two lazy rivers (one is pictured above), multiple hot tubs, kiddie pools, and a fitness center. The building’s amenity package matches or exceeds those of much larger resorts, enhancing guest satisfaction and occupancy demand.

One reason Crescent Keyes units perform so well as short-term rentals is the excellent guest experience the property offers. Online reviews across platforms like Airbnb, VRBO, Booking.com, and Tripadvisor are overwhelmingly positive:

• High ratings: Many Crescent Keyes condos maintain Airbnb ratings around 4.7–4.8 out of 5 stars, and a major rental agency’s survey shows an average 4.61/5 guest rating across 136 reviews. This indicates strong consistency in quality.

• Praise for amenities & location: Guests frequently mention the beautiful oceanfront pool deck and lazy river as highlights, along with the direct beach access and convenient location near restaurants. “The pools were clean and fun… Great location right on the beach,” notes one Booking.com reviewer (rating 8/10). Families love the kiddie pools and the fact that there is both an indoor pool and outdoor pools for all-weather enjoyment.

• Condo comfort and cleanliness: Visitors also comment on the spacious, well-equipped units. For example, “Wonderful vacation. Beautiful, cozy, clean and well maintained condo… Would definitely stay again!” wrote one guest about unit #1007. Another long-time visitor said “It is always so clean, so friendly, so comfortable. The amenities are great – something for everyone”. Positive reviews like these translate into repeat bookings and strong word-of-mouth.

• Importance of updates: Some repeat guests have noted they “prefer the units that have been updated and furniture replaced”, suggesting that condos with modern décor get better feedback. We’ll discuss this more in the renovation section, but it’s a clue to investors: keeping the unit updated can pay off in both reviews and rental rates.

Overall, Crescent Keyes enjoys a stellar reputation among vacationers. High guest satisfaction leads to higher occupancy, more off-season bookings, and the ability to charge premium rates – all boosting the rental income. In peak summer, these units command top dollar (3BR penthouses can rent for over $700–$900/night in mid-summer, and even 1BR units fetch strong weekly rates). The robust amenities and well-maintained facilities, funded by those HOA dues, clearly contribute to this performance. For an investor, maintaining a high review score is critical, as it directly correlates with revenue. Crescent Keyes makes that easier with its built-in advantages.

The oceanfront pool deck at Crescent Keyes (pictured) is frequently highlighted in guest reviews for its panoramic ocean views and relaxing atmosphere. Quality amenities and cleanliness are recurring themes in 5-star reviews, underscoring the link between property condition and rental success.

Renovation ROI and Value-Add Strategies

While Crescent Keyes is a relatively modern building, individual units’ décor and features can age over time. Investors can often boost rental income and ROI through strategic renovations and upgrades. Both guest feedback and industry experts point to a few high-ROI “value-add” strategies for vacation rentals:

• Refresh the Décor and Furnishings: Simply updating paint, replacing dated bedspreads/curtains, and adding contemporary beach-style decor can make a unit look fresh and attractive in photos. Minor cosmetic upgrades (new linens, artwork, even a feature wall) are low cost but improve guest appeal. As one management company notes, they even offer redecorating services because a stylish look can **“increase your rental income”*. In Crescent Keyes, units with recent remodels or new furniture tend to get booked more and reviewed more favorably.

• Add Sleeping Capacity (Where Feasible): If a bedroom can accommodate a bunk bed or an extra sleeper sofa can be added in the living room, this can allow a condo to host more guests. Higher occupancy options let you market to larger families or groups and justify higher nightly rates. For example, converting a little-used dining nook into a twin-over-twin bunk area could turn a 2BR that sleeps 6 into one that sleeps 8, boosting the revenue potential (so long as it doesn’t crowd the unit).

• Upgrade Amenities/Tech: Small touches can set your unit apart. Investors have seen ROI from providing better amenities like high-speed WiFi (Crescent Keyes already includes building WiFi), smart TVs in all rooms, a Keurig or quality coffee maker, beach chairs and toys for guest use, and a digital smart lock for easy self-check-in. These additions earn great reviews and repeat renters. Think about your target renter (families? snowbirds?) and cater to their needs – e.g. a pack-and-play crib and high chair for families, or blackout curtains and premium mattresses for all.

• Kitchen/Bath Updates: In older condos, renovating kitchens and baths yields the highest ROI. At Crescent Keyes most units already have solid-surface or granite countertops and decent appliances (given the mid-2000s construction), but an investor might consider updating to stainless appliances or adding a tile backsplash to stand out. Similarly, modern lighting, new faucets, or a tiled walk-in shower in the master bath can elevate the appeal. These bigger updates cost more but can bump your unit into a higher tier of nightly rate. One rule of thumb: a renovation that lets you charge even $10–$20 more per night in peak season can pay for itself quickly over hundreds of rental nights.

• Professional Photography: No matter how nice your unit is, high-quality listing photos are crucial to capture bookings. This is a low-cost but extremely high-ROI “upgrade” – essentially a marketing investment. Clear, bright photos of that ocean view from the balcony, or a virtual tour of your beautifully decorated living room, will make your listing more competitive (and can even lead to higher rates by increasing perceived value). Many top-performing rental owners invest in professional photos whenever they make significant upgrades.

In short, keeping the condo updated is not just about aesthetics, it’s about maximizing income. Renovations and value-adds should be evaluated in terms of how they’ll increase revenue or occupancy. The Crescent Keyes market rewards upgrades: renters comparing listings will favor the modern, well-equipped unit at a slightly higher price over a dated unit. As evidence, updated units at Crescent Keyes often have booking calendars that fill faster and command a premium. An investor might plan to reinvest a portion of the rental profits each year into improvements – not only to maintain the property (paint, appliance replacement, etc.) but to steadily enhance it. These efforts tend to pay off in both higher appraised value (should you sell in the future) and in immediate rental returns through better guest reviews and pricing power.

Comparison with Nearby Condo Resorts

North Myrtle Beach’s Crescent Beach area has a mix of comparable oceanfront condo buildings. It’s useful for investors to benchmark Crescent Keyes against a few others:

• Sister Properties – Laguna Keyes & Bluewater Keyes: Crescent Keyes was the middle project in the “Keyes” trilogy of developments (Laguna Keyes to the north in Cherry Grove, and Bluewater Keyes just a few blocks south). All were built mid-2000s with similar unit layouts. Crescent Keyes is arguably the most popular of the three due to its prime location and amenity package. Bluewater Keyes and Laguna Keyes also see strong rentals, but Crescent Keyes’ mix of units and proximity to central NMB attractions gives it an edge in occupancy. Investors looking at the Keyes resorts will find rental incomes in all three are solid, but Crescent Keyes units may fetch slightly higher rates on average (especially 2BRs, which are in high demand). Price-wise, Bluewater Keyes and Crescent Keyes 2BR units are similar in value, while Laguna Keyes (further from central NMB) might be a bit lower.

• Crescent Shores (2004): Just down the road, Crescent Shores is a two-tower, 18-story condo (built 2004) with large 2, 3, and 4BR units. It’s a favorite among larger groups for its spacious condos. Rental income potential at Crescent Shores is also high, but that resort lacks some amenities (no lazy river, for example) and has nearly 200 units, meaning more internal competition. Crescent Shores units have sold in the $250K–$500K range in recent years (lower price point per SF than Crescent Keyes). An investor choosing between the two might note that Crescent Keyes’ newer construction and more exclusive feel can attract a slightly more upscale renter profile, whereas Crescent Shores might cater to bargain hunters needing big space. Both allow short-term rentals; Crescent Shores may have a slight disadvantage in off-season appeal due to fewer on-site activities.

• Bay Watch Resort (2001): Bay Watch is a large complex of three high-rise towers in the same Crescent Beach area, offering 1-3 BR units and hotel-like amenities (restaurants, convention space). It’s an older resort with very extensive amenities (multiple pools, lazy river, on-site bar, etc.), often at slightly lower nightly rates than Crescent Keyes. From an investment standpoint, Bay Watch condos are cheaper (1BRs under $200K, 2BRs $250–$350K), but the HOA fees are also high and the sheer number of units (270+) can make it harder for an individual unit to stand out. Many investors prefer Crescent Keyes for a more balanced supply vs. demand: it has enough amenities to draw guests, but not so many units that rental rates suffer from oversupply.

• North Beach Plantation (2009): This is a luxury resort about 2 miles south (Windy Hill Beach) featuring a massive pool complex and high-end 1–5 BR condos. While not exactly “nearby” in Crescent Beach, it’s a competitor for high-end renters. North Beach units are far pricier (often $700K+ for 2BR) and their HOA fees are even higher, but they command top rental rates. Crescent Keyes represents a more affordable investment that still achieves strong rental returns – essentially a better value on the ROI spectrum. The cap rates at North Beach might actually be lower than at Crescent Keyes because of the huge entry price, despite impressive gross rental figures.

In summary, Crescent Keyes holds its own against the competition. It combines many of the best attributes that investors look for: modern construction, great amenities (lazy rivers are relatively rare – even some popular buildings like Ocean Bay Club or Carolina Dunes lack them), a desirable location, and a reasonable number of units. It tends to outperform older nearby condos on rental income and occupancy, and it matches the newer/larger resorts in quality while offering a better purchase price point. For an investor comparing options in North Myrtle Beach, Crescent Keyes should be high on the list if the goal is maximizing short-term rental profitability in the oceanfront condo segment.

Investment Strategies: 1031 Exchanges and Self-Directed IRAs

Investing in a condo like Crescent Keyes can be part of a larger tax strategy. Two mechanisms often used by savvy real estate investors are 1031 like-kind exchanges and Self-Directed IRA/401(k) purchases. Here’s how an investor might leverage each:

1. 1031 Exchange – Deferring Capital Gains: If you already own investment property and have significant appreciation, a Section 1031 exchange allows you to sell that property and reinvest the proceeds into a Crescent Keyes condo (or any investment real estate) without paying capital gains tax immediately. The key is that the property must be held for investment or business purposes, not personal use. Vacation rentals qualify as investment property as long as you’ve rented them out a substantial portion of the year (generally at least 14 days or more, with limited personal use). For example, an investor could sell a beach house or another condo and buy a Crescent Keyes unit as the replacement property via a 1031 exchange, thus deferring taxes on the sale. This strategy is great for “trading up” – e.g. moving equity from a smaller condo to a more expensive 3BR at Crescent Keyes without a tax hit. Important: To fully defer taxes, you must reinvest all proceeds and maintain equal or greater debt on the new property if the old one had a mortgage. The 1031 process has strict timelines (45 days to identify new property, 180 days to close) and requires using a qualified intermediary. But for investors planning to scale their portfolio, it’s a powerful tool. Many buyers of resort condos use 1031 funds, especially if they are swapping out of a less profitable rental into a high-demand one like Crescent Keyes. Keep in mind that if you ever want to cash out, you’ll owe the deferred taxes (unless you “exchange until you drop” or eventually convert the property to a primary residence under IRS rules). In short, a 1031 exchange can significantly improve your effective returns by avoiding the 15–20% capital gains hit, allowing more capital to be deployed into the next investment.

2. Self-Directed IRA/401(k) – Using Retirement Funds: Another approach is purchasing a Crescent Keyes condo through a self-directed IRA or Solo 401(k). IRS rules allow IRAs to invest in real estate (the IRA law does not prohibit it), but you need a special self-directed account custodian to do this. The big advantage is that all rental income and future appreciation grow tax-deferred or tax-free (if using a Roth IRA). For instance, you could use $300K from your IRA to buy a condo, then all rental profits go back into the IRA without being taxed currently. Over years, this can compound wealth significantly. However, the rules are strict: you cannot personally use the property (no staying in your own condo, even for a weekend) and you can’t directly manage the funds (all income/expenses must flow through the IRA). Also, any financing must be non-recourse (no personal guarantees) and could trigger some tax (UBIT) on leveraged gains. Despite the complexity, some investors do purchase vacation rentals in IRAs for the long-term retirement benefits. A self-directed 401(k) (for self-employed individuals) works similarly with possibly fewer fees and no custodian needed if set up correctly. The bottom line is you can use retirement money to invest in a Crescent Keyes condo as an asset, which might make sense if you want real estate exposure in your retirement portfolio. It’s crucial to work with a knowledgeable custodian or financial advisor to stay within IRS guidelines. Many choose this route to enjoy tax-deferred rental income and then potentially sell the property decades later, paying tax at a favorable time or even doing a 1031 exchange out of the IRA (a more advanced strategy beyond our scope here).

In both cases, these strategies can enhance the after-tax returns of your investment in Crescent Keyes. A 1031 exchange can boost your effective yield by redeploying pre-tax dollars, while a self-directed IRA/401k purchase can turn a vacation rental into a retirement growth engine. Not every investor will use these tools, but it’s good to know they’re available. For example, if you’re selling a smaller rental property in 2024, you might execute a 1031 exchange into a Crescent Keyes condo to start 2025 with a high-performing asset (deferring taxes and potentially increasing your cash flow). Or, if you have idle IRA funds and love the idea of owning a beach rental, you could direct your IRA to acquire the condo and let the rental income accumulate tax-free for years.

Final Thoughts: Crescent Keyes represents a compelling opportunity in 2025 for investors targeting short-term rental income. Its combination of strong gross rents, relatively modern amenities, and solid management/resort reputation provide a recipe for reliable returns. While net income and cap rates must account for hefty HOA fees and management costs, the property’s ability to attract year-round vacationers (including snowbirds in winter and families in summer) makes it a consistent income-generator. By carefully selecting the unit type that fits your budget and goals, leveraging smart upgrades, and utilizing investment strategies like 1031 exchanges or self-directed retirement funds, an investor can maximize ROI with a Crescent Keyes condo. In the North Myrtle Beach condo market, Crescent Keyes is a proven performer – offering the kind of rental income that can make for a profitable beachside investment as well as a personal slice of paradise.

Sources: Gross rental figures and cap rate estimates based on MLS data and rental records; HOA details from property disclosures; guest review summaries from CondoLux and Airbnb/Booking sites; renovation tips from industry experts; comparative insights and investment strategy info from real estate blogs and IRS guidelines. Each data point is cited inline above for reference.

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.