Crescent Towers II (North Myrtle Beach) – 2023/2024 Investment Performance Analysis

Crescent Towers II is a 10-story, 73-unit oceanfront condominium building (built in 1984) located in the Crescent Beach section of North Myrtle Beach. Investors are drawn to this property for its blend of beachfront location and rental income potential. Notably, short-term vacation rentals are allowed and common here – owners frequently list units on Airbnb, VRBO, Booking.com, etc., tapping into the Grand Strand’s robust tourist market. (If short-term rentals were prohibited, this would be a very different analysis focused on annual leases; however, Crescent Towers II’s HOA does allow vacation rentals as well as longer-term leases, giving owners flexibility.) In this article, we’ll dive deep into data-driven insights from 2023–2024: from gross vs. net rental income by unit type, to HOA fees and cap rates, to renovation ROI and guest reviews. We’ll also compare Crescent Towers II with similar nearby oceanfront condos and discuss smart investment strategies (like 1031 exchanges and self-directed IRA purchases) that can maximize returns.

Crescent Towers II offers direct oceanfront balconies and panoramic beach views, a major draw for vacationers. Its desirable Crescent Beach location provides immediate beach access and proximity to popular attractions.

2023–2024 Rental Income Performance (Short-Term Rentals)

With short-term vacation rentals in play, Crescent Towers II’s rental performance in 2023–2024 has been strong. Gross rental income varies by unit size, and so do expenses and net yields. The table below summarizes typical annual rental figures by unit type, based on recent owner reports and rental data, along with current values and cap rate estimates:

Gross income figures represent total rental revenue before expenses. For instance, a 1-bedroom unit typically grosses on the order of $20K-$30K annually in this building. Larger units command higher nightly rates and accommodate more guests, thus showing higher grosses – e.g. a 3BR can gross in the ~$50K range per year in a strong season. These ranges align with similar North Myrtle Beach properties; for example, at the Buena Vista high-rise in Cherry Grove (another 1980s oceanfront building), 1BRs gross ~$20–$30K and 3BRs ~$45–$55K annually.

Net income accounts for all typical expenses: HOA dues, management/booking fees, cleaning & turnover costs, maintenance, insurance, and property taxes. In Myrtle Beach, it’s common that net income is ~60–70% of gross for self-managed short-term rentals. For Crescent Towers II, net margins may be a bit lower than some peers due to higher HOA costs (discussed below). For example, a 2BR grossing $35K might net around $20K after all expenses – roughly a 5.5–6% cap rate if the condo was purchased for ~$350K. A 1BR grossing $25K might net ~$15K, and at a ~$250K price that’s ~6% cap. These cap rate figures (~5–7% net) fall in line with typical North Myrtle Beach vacation rental condos (commonly ~5–8% net cap rates). In fact, North Myrtle Beach’s average gross cap rate was ~8.1% in 2025 (around $27K annual revenue on a $360K median condo price) – and Crescent Towers II units can meet or exceed those benchmarks in good rental years.

Occupancy & seasonal trends: Like most Grand Strand rentals, Crescent Towers II sees pronounced seasonality. Summer months (June–August) are peak season with occupancy often 80–90%+ (back-to-back weekly bookings in July are common). Spring and fall “shoulder” seasons have moderate occupancy – weekends and festivals can spike demand – and winter drops off for short stays. However, because short-term rentals are permitted year-round, many owners capitalize on off-season monthly rentals for “snowbird” guests from up north. For example, a 1BR might rent to a retiree for $1,200–$1,500 per month in winter (instead of sitting vacant). Overall, Myrtle Beach short-term rentals average ~55–62% occupancy for the year with an average daily rate (ADR) around $120–$130. Crescent Towers II’s oceanfront location allows above-average summer ADRs – in peak July, 2BR units here can fetch around $250/night and 3BR units $300–$400/night, while in winter nightly rates might be $80–$120 (hence the pivot to monthly snowbird rates). The ability to fill the off-season with longer stays helps smooth out the seasonal income swings.

Short-term vs. long-term: It’s worth noting the difference in strategy if one chose a long-term tenant instead. Crescent Towers II does allow long-term leases (≥6 or 12 months), but the income potential is lower than vacation renting. A 2BR oceanfront annual lease in this area might bring roughly $1,800–$2,200 per month (around $22K–$26K/year gross). That’s steadier, but still below what short-term rentals can generate in peak years. Moreover, with long-term tenants the owner typically pays utilities and doesn’t have the benefit of peak season surges. Thus, since short-term rentals are allowed, most investors here focus on the vacation rental model for maximum income. Long-term could be a fallback (or an off-season filler), but it generally yields a lower cap rate – albeit with less hands-on management. The flexibility to do either is valuable: for instance, an owner who prefers minimal turnover might do a 3-6 month winter lease to a snowbird and weekly rentals in summer, essentially blending both approaches.

Guest Experience & Reviews (Airbnb/VRBO Feedback)

The guest satisfaction at Crescent Towers II directly impacts occupancy and repeat bookings – and the consensus is quite positive for well-maintained units. Recent reviews on vacation rental platforms highlight the spectacular ocean views and convenient beach access as top perks. For example, one 2024 Booking.com guest gave their stay a 9/10, stating: “I loved the condo! It was newly updated and very nice and clean. The beach access was super helpful and the beach wasn’t too busy!”. Many VRBO/Airbnb listings for Crescent Towers II boast average ratings of 4.5★ to 5★, with guests praising cleanliness, comfort, and location – especially for updated units. Travelers appreciate that Crescent Towers II is a smaller-scale building (no crowded mega-resort vibes), which means the beach out front is often less crowded and the atmosphere more relaxed. A TripAdvisor aggregate of the property shows around 3.5★ out of 5 overall, with particularly high marks for location (e.g. “Sleep Quality” rated 4.1/5) but somewhat lower scores for older units’ cleanliness (3.2/5). This underscores a key point for investors: unit condition matters. Owners who keep their condo updated and clean tend to get glowing reviews and repeat renters, whereas dated or poorly maintained units can drag on guest satisfaction. Overall, Crescent Towers II’s reputation in 2023–2024 has been family-friendly and comfortable. Many reviews mention that the building, while not new, is “well-maintained and secure”, with features like coded entry, elevators, and on-site cameras contributing to peace of mind. From an investor’s perspective, happy guests translate into strong occupancy (including repeat snowbirds who return every winter), and thus healthy rental income.

HOA Fees, Policies & Impact on ROI

One of the most important factors for condo investors is the Homeowners Association (HOA) fee and rules, which at Crescent Towers II have a notable impact on net returns. HOA dues here currently range from about $733 to $800 per month depending on unit size. For example, a recent 3BR listing showed $733/month HOA for a 1,334 sq ft unit. A slightly larger unit (or 4BR) might be around $800/month. These fees are all-inclusive – meaning the HOA covers nearly all building and common area costs, and even many utilities. Specifically, HOA fees include: building insurance (hazard/flood for the structure), water & sewer, trash pickup, cable TV, internet/WiFi, common area electricity, elevator maintenance, pool upkeep, landscaping, pest control, exterior building maintenance, and property management of the HOA. In practical terms, this simplifies things for owners: your guests’ water, cable, and internet are already paid through HOA, and you only need a simple interior insurance policy (HO6) for your unit’s contents since the master insurance is in the HOA.

However, the HOA fee is a significant fixed expense that eats into rental income. At roughly $8,800 – $9,600 per year for a 2-3BR unit, the HOA can represent about 20–25% of a typical 2BR’s gross income, or even ~30% of a 1BR’s gross in some cases. For instance, an owner grossing $35K on a 2BR and paying ~$9K in HOA dues is giving up ~25% of gross right off the top. It’s important to weigh this against what the HOA provides. High HOA fees can be a red flag if they’re out-of-line with amenities, but in the case of Crescent Towers II, the level (≈$750–800) is actually comparable to other oceanfront buildings when you consider services included. (For comparison, some newer North Myrtle Beach resorts have HOA dues exceeding $800–$1,000/mo for similar-sized units, especially if they include extensive water park amenities or on-site staffing.) Crescent Towers II’s HOA is reported by owners to be well-managed and has invested in important upgrades – e.g. a complete building waterproofing, exterior paint, and fire system update in 2021. This proactive maintenance helps prevent special assessments and preserves property values long-term. In fact, owners often mention that Crescent Towers II has strong reserves and maintenance records, which can be reassuring for an investor (no one likes surprise assessments due to deferred maintenance).

HOA rules/policies: Crescent Towers II has a typical set of rules aimed at balancing owner and guest enjoyment. Notably, motorcycles and trailers are not allowed on the property (a common rule along the Grand Strand to prevent noise and parking issues) – so renters coming for biker weeks, for example, would need alternative parking off-site. Pets are not allowed for renters (only owners can have pets, and even then likely with restrictions). This means you can’t advertise your unit as “pet-friendly,” which does slightly narrow the renter pool (some competing rentals allow dogs for a fee), but it’s standard for most condos to forbid vacationing pets. There may also be reasonable rules on occupancy limits and age (e.g. primary renter must be 25+, which is often an insurance requirement – and indeed Elliott Realty’s listing notes a minimum check-in age of 25 for renters). Overall, these HOA policies are in place to protect the property and ensure a family-friendly environment. For investors, the key is that short-term rentals are permitted without onerous restrictions (no minimum stay length beyond perhaps a 2-3 night minimum by owner choice). This freedom to rent nightly/weekly is crucial to achieving the high gross incomes noted above. Always factor in the HOA fees to your ROI calculations: a condo with a high HOA needs to gross correspondingly more to net the same profit as a condo with a lower HOA. To illustrate, an investor could compare two scenarios: Condo A grosses $40K with a $10K HOA, versus Condo B grosses $35K with a $5K HOA – Condo B would actually yield more net profit despite lower gross. In Crescent Towers II’s case, the HOA is on the higher side, so savvy owners maximize revenue (through good marketing, repeat guests, and upgrades) to ensure a healthy net margin.

Renovation ROI: The Value of Upgrades

One of the biggest levers an investor can pull to boost rental income at Crescent Towers II is unit renovation and modernization. Many units in the building still feature older 1980s-1990s décor or original finishes – e.g. carpeted floors, laminate countertops, dated cabinetry, etc. While these units can rent adequately due to the location, an updated unit can often earn a premium in both rate and occupancy (not to mention a higher resale value). Renovation ROI in vacation rentals tends to be compelling: improved guest reviews, more bookings, and the ability to charge higher nightly rates. For example, at a similar oceanfront building, it was observed that a ~$20,000 interior remodel (new flooring, fresh paint, updated kitchen appliances and countertops, modern furniture) could increase a 2BR’s gross rental income from about $35K to $42K (adding ~$7K/year). That’s a 35% annual return on the renovation investment, paying back the cost in under 3 years – an excellent ROI by any standard. Crescent Towers II likely sees analogous figures: an outdated 2BR that might only attract $120/night in peak season could, after renovations and quality coastal-style furnishings, command $150–$180/night for the same dates. Guests will pay more for updated kitchens, modern bathrooms, new comfortable bedding, and big smart TVs – as evidenced by reviews specifically praising “newly updated and very nice and clean” units.

Beyond higher rates, renovated units tend to book up more. Better photos in your listing (showcasing granite counters, stainless appliances, walk-in tiled showers, etc.) lead to more clicks and reservations. And satisfied guests of an upgraded unit are more likely to become repeat visitors (or leave 5★ reviews that attract new renters). This all feeds a virtuous cycle of higher occupancy and revenue. On the resale side, money put into upgrades is often recouped (and then some) in sale price. Buyers of investment condos heavily favor “turnkey” updated units – they’ll pay a premium for a property that already looks great and rents well, versus a fixer-upper. Appraisals do account for condition to an extent, but it’s really the market demand: a beautifully renovated oceanfront condo will simply sell faster and at a higher price per square foot than a dated one in the same building. So you’re not only boosting annual income, you’re adding to your equity.

Common high-ROI updates owners do include: replacing old carpet with durable LVP flooring (great for sand and wear), updating kitchen appliances and countertops, repainting in light “coastal” color schemes, modernizing light fixtures and plumbing fixtures, and upgrading furniture (particularly the living room and mattresses, since reviews often mention comfort). Even small touches like smart locks, a digital thermostat, and tasteful wall art can enhance the guest experience. Pro tip: Many experienced owners schedule renovations in the off-season (Jan–Feb) when rental demand is lowest. Two months of downtime for improvements can pay off with years of higher earnings. And new mechanicals (A/C, water heater) mean fewer maintenance emergencies during peak season – keeping guests happy and avoiding refunds or credits for issues. In short, an investor should strongly consider budgeting for upgrades when acquiring an older condo like Crescent Towers II. The building’s solid “bones” and location are a fantastic canvas, and with modernization, a unit can become a top performer in its class.

Comparing Crescent Towers II to Nearby Oceanfront Condos

North Myrtle Beach has a variety of oceanfront condo buildings, each with its own profile. How does Crescent Towers II stack up against some comparable properties in the area? Here are a few points of comparison for context:

• Crescent Shores (built 2004, two 18-story towers in Crescent Beach): This is a newer high-rise just a few blocks north. Units are larger (2-4 bedrooms) and the resort-style amenities include pools, a lazy river, hot tubs, and a fitness center. Rental Performance: Crescent Shores condos often generate high gross rentals – for example, a 3BR at Crescent Shores might gross $50K–$60K+ in a good year (thanks to modern amenities and very spacious units). Prices: correspondingly higher – recent sales range from the mid-$400s for 2BRs to $600K+ for 4BR units. HOA Fees: also high, often $800+ per month, to maintain the extensive amenities. Investor Takeaway: Crescent Shores can deliver strong rental income, but the purchase price and carrying costs are higher. Its cap rates end up in a similar mid-single-digit range. Some investors prefer Crescent Towers II’s smaller scale and lower price point, while others love Crescent Shores for the all-out resort appeal. Notably, Crescent Shores is extremely popular with vacationers, but that also means heavy wear and tear and more competition from many similar units on the rental market.

• Bay Watch Resort (built 2001, 3 high-rise towers in South NMB): Bay Watch is a large resort with hotel-like operations – multiple pools, lazy rivers, on-site restaurants, and a conference center. Rental Performance: It attracts a high volume of guests; summer weeks command good rates, but the management structure often involves higher commission splits (if you use the on-site rental program, they may take ~40-50% of gross). Owners can self-manage, but must still compete with the on-site services. Gross incomes for a 2BR might be $30K–$40K, similar to Crescent Towers II, but Net can be lower if using resort management. Prices: 1BRs and 2BRs at Bay Watch are generally in the low-to-mid $200Ks and $300Ks respectively (often a bit less expensive than Crescent Towers II units, partly because it’s a condotel-style property). HOA Fees: around ~$600-$700/mo for a 2BR, but not including interior unit electric in many cases, and the resort has additional insurance costs. Investor Takeaway: Bay Watch can be a good value play for purchase price, but true cap rates can suffer under the weight of management fees and competition. Some investors avoid large condotels due to those higher cost structures. Crescent Towers II, in contrast, is self-management friendly and feels more like a residential condo building than a hotel.

• Crescent Beach “Boutique” Condos (e.g. Crescent Sands, Ocean Drive Villas): In the vicinity are also some smaller or older condos. Crescent Sands (multiple buildings, 1980s low- and mid-rise) offers 2BR units that are oceanfront but with fewer amenities (perhaps just a pool). Their rental potential is a bit lower than Crescent Towers II – maybe $25K–$35K for a 2BR gross – and prices in the low $300Ks. These smaller complexes have lower HOAs (maybe $400–$500/mo) but also lack perks like on-site staff or fancy pools. Crescent Towers II actually falls in this mid-range category but distinguishes itself by being a high-rise with an elevator and a heated pool, giving it an edge over true low-rises. Investor Takeaway: Compared to these, Crescent Towers II may achieve slightly higher rents due to the high-rise view (upper floors) and perhaps more units = more marketing presence. The choice often comes down to whether an investor wants a high-rise experience or a quieter low-rise building.

• Mar Vista Grande (built 2006, Ocean Drive section): Worth mentioning as a high-end comparison, Mar Vista is a luxury 3-4BR condo tower about 2 miles north. It boasts indoor/outdoor pools, a gym, spa, etc. Rental Performance: Very strong – 3BRs can gross $60K+ easily – but Prices are much higher (often $600K–$800K). HOA is also hefty (~$900-$1,000/mo). Cap rates end up moderate. Investor Takeaway: Mar Vista attracts a different segment (luxury rentals and second-home owners). Crescent Towers II is more of a “value play” for those wanting an oceanfront investment under ~$500K.

In summary, Crescent Towers II holds its own as an investment by offering a prime oceanfront location with solid rental demand, at a price point generally lower than the big new resorts. It doesn’t have waterslides or a tiki bar on-site, but many vacationers (and thus investors) are looking for the basics done well: a clean, comfortable oceanfront condo with a pool and beach at your doorstep. Crescent Towers II delivers that. Its rental incomes are comparable to similar vintage buildings, and when measured in net terms (after expenses), it competes well because of reasonable (albeit not low) HOA fees that cover most needs. Investors should compare the net yields: some flashy resorts might gross more, but after $1,000 HOAs and high management fees, the take-home can be similar or less. Crescent Towers II’s niche is the “sweet spot” 2BR and 3BR units that appeal to families and snowbirds alike, without the overhead of an on-site hotel operation.

Investment Strategies: 1031 Exchanges & Self-Directed IRA Purchases

Investors eyeing Crescent Towers II can amplify their returns by leveraging smart financing and tax strategies. Two popular methods in 2023–2024 have been 1031 like-kind exchanges and using self-directed retirement accounts (IRA/401k) to purchase rental condos. These strategies can significantly enhance your real estate investment outcomes if executed properly:

• 1031 Like-Kind Exchange: Section 1031 of the IRS Code allows real estate investors to defer capital gains taxes by reinvesting the proceeds from the sale of one investment property into another “like-kind” property. In plain language, if you sell another property (say a rental home or another condo) at a profit, you can buy a Crescent Towers II condo with the proceeds and pay no capital gains tax on the sale, as long as you follow 1031 rules. This is essentially a tax-free rollover of your investment – you defer the tax bill into the future. Many out-of-state buyers utilize 1031 exchanges to transition from a less profitable or management-intensive property into a hands-off vacation rental. A condo at Crescent Towers II qualifies as like-kind investment real estate, so it can be the replacement property in an exchange. The IRS timelines are strict: after selling your old property, you must identify the replacement within 45 days and close within 180 days. The benefit of a 1031 is huge: the capital gains tax you would have paid (often 15–20% of your gain) stays in your pocket working for you in the new investment. That extra capital could be used for renovations, or just boosting your equity (which improves cash flow and ROI). Pro tip: Always use a qualified 1031 intermediary to handle the funds – you cannot take possession of the cash from the sale, or the exchange fails the rules. With a successful exchange, investors essentially “grow” their portfolio tax-deferred. For example, one might start with a $200K condo, later exchange into a $350K condo, then into a $500K property, all without ever paying taxes in between, thereby leveraging the full untaxed gains each time. If you’re selling a property elsewhere and want to step into the Myrtle Beach market, a 1031 exchange into Crescent Towers II could be ideal – you get a high-demand rental and defer taxes, improving your immediate yield. (Eventually, if you decide to cash out, you’d owe taxes, unless you keep exchanging or use other strategies like a 1031 into a primary residence after retirement, etc. Always consult a CPA on exit strategies.)

• Self-Directed IRA / 401(k) Purchase: Did you know you can buy an investment property within your retirement account? By using a self-directed IRA (SDIRA) or Solo 401k, investors can purchase real estate with tax-advantaged retirement funds. The big benefit: all rental income and any future resale gains grow tax-deferred (or tax-free in a Roth) inside the retirement account. Imagine earning rental profits on your Crescent Towers II condo and not paying any income tax on it each year – instead, those earnings accumulate in your IRA, compounding over time. If it’s a Roth IRA, even better: you could potentially withdraw proceeds tax-free in retirement. However, there are critical rules and caveats to using retirement funds for real estate: the IRA (or 401k) is technically the owner of the property, and you as the account holder (and your immediate family) cannot use the property personally or provide “sweat equity” services. In other words, it must be purely an investment; you can’t vacation in the condo yourself while the IRA owns it – that would be self-dealing, which is prohibited. All expenses (HOA dues, repairs, management fees) must be paid from the IRA’s funds, and all rental income must go back into the IRA. Practically, many set up an LLC owned by the IRA to handle the checking account and bills. You’ll also want professional property management, since you shouldn’t directly perform management duties (you’re the investor, not the handyman, in the eyes of the IRS). Financing an IRA property is tricky (often requires non-recourse loans if any), so many IRA purchases are cash deals. Despite the complexity, the reward can be substantial: if, say, your self-directed Roth IRA buys a condo for $300K and rents it out for 10 years, the rental income and any appreciation on sale go back into the Roth completely tax-free. This can supercharge your retirement nest egg. Some investors in their 30s and 40s use self-directed IRAs to diversify into real estate, while older investors might even do a 1031 exchange into an IRA-owned property (there’s a strategy where you 1031 into a new property, then later move that property into a self-directed IRA; careful planning needed). The key is to follow all IRS rules and consult with a financial advisor knowledgeable in real estate IRAs.

Both 1031 exchanges and IRA purchases are advanced strategies that require proper setup and professional guidance, but they can enhance your returns significantly. A 1031 saves you potentially tens of thousands in immediate taxes, boosting your effective buying power. An IRA purchase shields ongoing income from taxation, allowing faster growth. It’s not uncommon, for instance, to see a couple in their 60s sell a highly appreciated property up north, use a 1031 exchange to buy a condo in Myrtle Beach, rent it for a decade within a self-directed IRA or 401k, then later take distributions or even retire and move in (after taking it out of the IRA with proper handling). Each investor’s situation is unique, but if you’re in a position to utilize these strategies, Crescent Towers II can be an attractive target – it’s a fairly priced, income-producing property in a market with steady tourism demand. As always, consult a CPA/tax advisor and attorney before attempting these transactions, but know that these tools are available to help maximize your real estate investment wealth.

Conclusion

Crescent Towers II exemplifies the kind of oceanfront condo investment that can balance enjoyment and income. With its direct oceanfront views, prime North Myrtle Beach location, and solid rental track record, it has proven to be a profitable option in 2023–2024 for those who execute smartly. Investors can achieve gross rents in the mid–five figures and net yields in the mid-single digits, which is competitive for the market. Careful attention to expenses (notably the HOA) and proactive management (or choice of management) will ensure those revenues translate into healthy profits. Opportunities to add value – such as renovating an older unit or leveraging tax-deferred money – further enhance the appeal of Crescent Towers II as part of a real estate portfolio.

Finally, always approach such an investment with both data and a plan: run the numbers for best-case and worst-case scenarios, read the HOA bylaws, and perhaps talk to current owners. Whether you’re using a 1031 exchange to roll into this condo, or parking some retirement funds in a beach rental, or simply buying your first vacation rental outright, Crescent Towers II offers a compelling case. It stands in a sweet spot of the Grand Strand – not the newest tower on the block, but a reliable income generator with a devoted repeat guest base. As the 2023–2024 data shows, a well-kept unit here can deliver enjoyment to guests and strong returns to its owner. With the Myrtle Beach area continuing to grow in popularity, investments like this can offer not just yearly cash flow but also long-term appreciation (units here fall in a value range of roughly $270K–$560K and have been trending up in recent years). In real estate, the old adage is location, location, location – and Crescent Towers II certainly has a prime location. But as we’ve outlined, strategy and execution are what turn a prime location into a prime investment. Armed with the insights above, an investor should be well-equipped to make an informed decision on Crescent Towers II and potentially turn this oceanfront condo into a lucrative addition to their portfolio.

Sources: Data and review excerpts were drawn from owner-reported rental figures, MLS sales data, and reputable real estate analyses, as well as guest reviews on Booking.com and TripAdvisor. HOA information was confirmed via the building’s disclosures. For further details or current listings at Crescent Towers II, you can refer to the Oceanfront Commercial Group’s resources and market reports.

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.