Holiday Pavilion Resort on the Boardwalk: 2023–2024 Vacation Rental Investment Performance

Resort Overview and Market Appeal

Holiday Pavilion Resort on the Boardwalk in Myrtle Beach, SC is a top-rated oceanfront condo-hotel located at 1200 N Ocean Blvd, right along the bustling boardwalk. In 2024 it was ranked the #1 oceanfront resort in Myrtle Beach on Expedia, with an 8.2/10 guest rating from over 1,188 online reviews. Travelers praise its “excellent location” (rated 9.3/10 on Booking.com) and family-friendly amenities. The resort offers indoor/outdoor pools, a lazy river, kiddie pool, hot tubs, a gym, and direct beach access – features that drive strong guest satisfaction and repeat visits. For instance, one Google review notes “Location is excellent... price is great in the off season... views are spectacular the higher up you are”. Such popularity across platforms (8.1/10 “Very Good” on Booking.com, 4.58/5.0 on Airbnb with dozens of reviews, and ~9/10 on VRBO) indicates consistent demand, an important foundation for investment potential.

Myrtle Beach’s overall tourism remains robust, drawing over 19 million visitors annually. While 2023 saw a normalization after the 2021–2022 post-pandemic boom (occupancy was down ~20% from 2022, though still above 2019 levels), Holiday Pavilion continues to attract steady bookings. Its combination of prime boardwalk location (steps from the SkyWheel, parks, and nightlife) and resort-style amenities makes it a high-performing property on rental platforms. This strong guest appeal translates into real numbers for investors, as we’ll explore below.

Rental Performance (2023–2024): Income, Occupancy & Rates

Rental Income and Occupancy by Platform

Short-term rental performance at Holiday Pavilion has been impressive through 2023 into 2024, with healthy rental income reported by owners. In 2023, an oceanfront efficiency unit (studio) grossed about $32,400 in rental income via owner-directed bookings (e.g. Airbnb/VRBO). Similarly, a 1-bedroom oceanfront unit generated around $37,800 (per 2022 data) in gross rentals. Owners often list units on multiple platforms – Airbnb, VRBO, Booking.com, and direct bookings – to maximize occupancy. The resort’s presence on all major channels means a broad guest pool. For example, an Airbnb listing for a unit boasts a 4.58/5.0 rating with 48 reviews (indicating many successful stays), while a similar 1-bedroom on VRBO is rated 9.2/10 (“Wonderful”) with 31 guest reviews. Booking.com also reflects high volume, with the entire resort averaging 8.1/10 from 2,279+ reviews. Such positive reviews across platforms not only speak to guest satisfaction but also drive higher occupancy – properties with strong ratings tend to rank higher in searches and attract more bookings.

Occupancy trends at Holiday Pavilion follow Myrtle Beach’s seasonal patterns. Peak summer months (June–August) see occupancies near full capacity (often 90%+ on available nights), whereas winters are quieter. Myrtle Beach’s vacation rental market is highly seasonal – over 50% of annual rental revenue is earned in the summer months. At Holiday Pavilion, one can expect back-to-back bookings in summer weeks (with many guests booking a full week), moderate occupancy in spring and fall shoulder seasons, and lower occupancy in the off-season. Even so, the Myrtle Beach market has evolved to extend the season: fall festivals, winter holiday events, and mild spring weather help keep occupancy from completely bottoming out. On average, annual occupancy rates for well-managed oceanfront condos here can range roughly from 50–70% of nights, with higher-end performance at Holiday Pavilion due to its boardwalk location. (Notably, 2023 saw a slight dip in area-wide occupancy vs. 2022, attributable to a surge in new rental supply and travelers booking more last-minute.) Still, Holiday Pavilion’s popularity has kept its units competitive – frequent positive guest feedback and the resort’s visibility on Expedia/Booking drive a steady stream of bookings even when overall demand softens.

Average Nightly Rates and Seasonality

Rental rates at Holiday Pavilion vary significantly by season and unit type (oceanfront vs. oceanview). In peak summer, oceanfront units command premium nightly rates – often in the range of $200 to $300+ per night for a one-bedroom, given the high demand and prime location. Mid-tier oceanview units might fetch around 15–25% less than oceanfront on summer nights (e.g. $150–$225/night). During shoulder seasons (spring and early fall), rates typically moderate to perhaps $100–$180/night, attracting weekend warriors and event attendees. In the winter off-season, nightly prices drop substantially – deals of $80–$120/night are common to entice snowbirds and budget travelers. An analysis by a travel site noted Holiday Pavilion’s average room rate around $170/night, slightly below the city’s average of $181, reflecting its competitive pricing and value. This average blends the high summer rates with low winter deals.

Seasonality is a key factor in revenue: with so much income concentrated in summer, the peak season essentially “makes or breaks” the annual performance. The good news is Holiday Pavilion’s location on the boardwalk allows owners to push rates higher than many competing condos – proximity to attractions means guests will pay a premium. Also, the mix of amenities (pools, free breakfast options, etc.) adds value that can justify higher nightly prices. Owners often institute seasonal minimum stays (e.g. requiring 3-7 nights in summer) to maximize occupancy efficiency. During events like spring break, summer holidays, or October’s Myrtle Beach Bike Week, nightly rates can spike due to demand. Conversely, in off-season months, owners may lower rates or run promotions to achieve any occupancy (some income is better than none). The resort itself advertises specials (e.g. “save 45% in March–May” deals) which independent owners often match on Airbnb/VRBO to stay competitive.

On the expense side, operating costs remain relatively fixed year-round, which means high-season income is crucial. The major expense is the HOA fee (more on this below) which covers utilities and services regardless of occupancy. Other costs like cleaning fees are typically passed to guests per booking on platforms. Owners should budget for off-season carrying costs when rental income is low. Overall, Holiday Pavilion’s seasonality requires smart pricing strategy: successful owners use dynamic pricing tools or closely monitor market rates to optimize nightly prices throughout the year. When done well, the busy months’ income more than covers the slow months, yielding a strong total yearly revenue.

Operating Expenses and HOA Considerations

Investors must account for expenses that impact net income. At Holiday Pavilion, HOA fees are a significant monthly cost – around $736 per month for a one-bedroom unit (efficiencies are in a similar range). This HOA fee is comprehensive, however, covering almost all utilities and services: cable TV, high-speed internet, electricity, water/sewer, trash, pest control, building insurance, pool and common area maintenance, security, and on-site management of the HOA. In essence, many costs an owner would pay separately in a single-family home or traditional condo (like internet or electric bills) are bundled into this fee. That simplifies the expense structure – your HOA covers keeping the lights on and the pools clean – but it is a substantial annual expense (~$8,800/year). Property taxes for these units are another expense (roughly on the order of $1,500–$2,500 annually, depending on assessed value and residency status), and insurance for contents/liability if not fully covered by HOA’s master policy. If self-managing rentals, owners should also budget for platform fees (Airbnb and VRBO take ~3% and ~8% from the host, respectively) and cleaning services between guests (which can often be charged to guests as a cleaning fee).

Despite these costs, the net operating income can be attractive. According to data shared by current owners, an oceanfront efficiency unit at Holiday Pavilion incurs about $22,709 in annual operating expenses (HOA + taxes, etc.) for a cash owner. Against the revenue of ~$32,400, that leaves a healthy margin. In fact, one analysis projected roughly $22,300 in net profit for a cash-purchased efficiency unit – implying a ~10% “cap rate” (net income divided by purchase price) on a unit that cost around $223k. For a 1-bedroom oceanfront unit, expenses were estimated at ~$23,899 per year, leaving about $13,914 net income from the ~$37.8k gross rentals. That is a slimmer margin (about a 6.3% cap rate on a ~$220k purchase). These figures include typical costs but exclude mortgage payments, which we’ll consider separately. They demonstrate that oceanfront studios tend to have higher net yields than the 1-bedrooms, likely because they produce nearly as much rental income while incurring similar expenses – an interesting quirk for investors to note.

Holiday Pavilion’s on-site rental program is another consideration. Owners can choose to join the resort’s internal rental management instead of self-managing. The on-site program often markets higher gross rental numbers (similar units reportedly average $45,000/yr gross under on-site management). However, typically the trade-off is a hefty management fee (often 40-50% of gross) or other charges that bring the owner’s net down. The data suggests that an owner using the on-site program could indeed see around $45k in bookings, but after the program’s cut, the net to owner might be comparable to self-managing. The advantage of the on-site program is hands-off convenience (they handle bookings, front desk service, cleaning, etc., like a hotel). The disadvantage is the loss of control and potentially lower net income after fees. Many experienced investors opt to self-manage via Airbnb/VRBO to avoid those high commissions, especially given the strong demand that can be captured independently. Importantly, the HOA and condo bylaws at Holiday Pavilion do allow short-term rentals by owners (it’s explicitly listed as “Short Term Rental Allowed” in the community features). This means you have the flexibility to choose your rental strategy – a critical policy that makes these truly investor-friendly condos. There may be minor HOA rules (for example, guests must be 21+ to check in, no pets for renters, etc., common in resort properties), but there are no onerous restrictions preventing you from renting the unit on Airbnb or through an agent of your choice. The HOA even allows long-term rentals if one ever decided to rent for 6-12 months to a tenant, though the high seasonal income potential usually makes short-term far more lucrative.

In summary, operating expenses at Holiday Pavilion are relatively high (as with any full-service oceanfront resort condo), but they are predictable and accompanied by equally high rental revenue potential. An investor should budget roughly 30-40% of gross income for fixed costs (HOA, taxes, insurance) when running projections. The HOA structure, while costly, also simplifies ownership – for instance, including electric and cable means no surprise utility bills during an extra hot month or heavy occupancy. This can make cash flow more predictable. Smart budgeting for marketing, occasional repairs, and capital reserves (e.g. replacing furnishings every few years) will ensure the investment remains profitable long-term.

ROI and Cap Rates: What Returns Can Investors Expect?

One of the key attractions of Holiday Pavilion units is their relatively low entry price for an oceanfront property, paired with solid income. Sale prices in 2023 averaged around $165,000 for an oceanview 1-bedroom unit and $220,000 for an oceanfront 1-bedroom. The smaller efficiency (studio) units sold for about $199,000 (oceanview) and $223,300 (oceanfront) on average in 2023. This puts the typical price range roughly in the mid $100Ks up to low $200Ks for individual units – far more affordable than larger beachfront condos or single-family beachfront homes (which can run into millions).

Crucially, these prices translate into attractive returns. Let’s look at two scenarios based on 2023 data:

Table: Investment metrics for typical units at Holiday Pavilion (oceanfront view). Cap rate is based on cash purchase NOI. Appreciation and depreciation figures per decade illustrate long-term equity growth and tax sheltering.

As shown above, an oceanfront efficiency/studio is something of a cash cow relative to its price – yielding about a 10% cap rate (unleveraged). The one-bedroom, while generating higher gross revenue, has a lower percentage return largely due to similar costs (HOA, etc.) spread over a not-much-higher income. In either case, these cap rates are quite respectable. Many resort-area condos in Myrtle Beach might see cap rates in the 5–8% range, so hitting ~10% is notably good. Keep in mind cap rate here is based on a cash purchase without financing.

For investors taking a mortgage (leveraged), the cash-on-cash return can be different. Holiday Pavilion units are considered “condotels” (condo-hotel), which often require a higher down payment and carry higher interest rates than primary home loans. Typically a 25% down payment is common. Using the provided data: for the efficiency unit, a financed scenario (with say ~75% LTV loan) had an estimated annual expense of $36,185 including mortgage payments, leaving about $8,815 net profit after debt service. That’s still positive cash flow, and the return on the actual cash invested (the down payment) can be attractive – roughly a 15–20% cash-on-cash ROI, assuming ~$8.8k profit on ~$55k down (exact ROI depends on interest rate and loan terms). The one-bedroom example, however, showed that with financing the net could be slightly negative (around -$2,310/year in that model). In other words, if you finance a 1BR, you might have to feed a couple thousand dollars per year out-of-pocket unless you can increase its rental performance beyond the average ~$37k gross. This isn’t unusual: financed deals often have thinner margins, and it underlines the importance of buying at a good price and maximizing rental income. It’s also a reminder that studios, being lower priced, might actually finance better in terms of cash flow sustainability.

It’s worth noting the appreciation potential and equity build-up. Over the past decade, Holiday Pavilion units have seen substantial appreciation – the average oceanfront unit increased ~74–80% in value. Much of that came in the last few years (as Myrtle Beach real estate surged post-2020), but long-term, the trend has been upward. An investor can benefit not only from rental income but also from this price appreciation when selling in the future. Additionally, there are tax benefits: each unit can be depreciated for tax purposes (the building portion of the property value, over 27.5 years for residential real estate). Based on the purchase prices, an owner might get roughly $6k–$7k per year in depreciation write-off. This is a paper deduction that can shelter part of the rental income from taxes (consult a CPA, of course). In some cases, with aggressive cost segregation, even more depreciation can be front-loaded in early years. This tax efficiency is part of the ROI picture – it improves the after-tax return substantially for many investors.

In summary, ROI projections at Holiday Pavilion are strong: a cash investor might see high single-digit to low double-digit percentage returns (net yield). A financed investor can amplify their return on equity, though careful underwriting is needed to ensure positive cash flow. The relatively low price point of these units means even first-time investors can enter the market, and there is potential for both income and appreciation. The key for hitting the projected returns is active management (or a very effective property manager) to achieve those gross rental figures in the mid-$30k range or higher.

Comparison with Similar Oceanfront Properties

When assessing Holiday Pavilion’s investment performance, it’s useful to compare it to other oceanfront condo properties in Myrtle Beach. The Grand Strand is lined with condo-resorts, but not all are equal in terms of rental yield and purchase price. Holiday Pavilion stands out partly due to its Boardwalk location – many other condo buildings are farther north or south, away from the central tourist district. Properties of similar stature might include Bay View Resort (also on the boardwalk), Atlantica Resort, Camelot by the Sea, or Sea Crest Resort. Here’s how Holiday Pavilion stacks up:

• Price Point: Holiday Pavilion’s units in the $160k–$230k range are comparable to or slightly above some older resorts like Sea Crest or Atlantica, where one might find one-bed units in the $150k–$200k range as well. Newer high-rise condos or branded resorts (e.g. Marriott’s OceanWatch, Hilton’s residences) are significantly pricier (often $400k+), but those target a different market. Within its class, Holiday Pavilion’s sale prices reflect its prime location and strong income – e.g., an oceanview 1BR at Holiday Pavilion averaging ~$165k vs. perhaps $140k–$150k at an older off-boardwalk resort for similar rental potential. In essence, you pay a slight premium for the Boardwalk address, but not an exorbitant one.

• Rental Income: In terms of gross rental, Holiday Pavilion’s ~$30k–$40k for studio/1BR units is on the higher end for Myrtle Beach. Many similar condos might gross $25k–$35k for a 1BR. The Boardwalk location means higher foot traffic and occupancy, boosting revenue. For example, a one-bedroom at Bay View or Camelot by the Sea might have slightly lower ADRs or occupancy if they lack some amenities or the central location, yielding perhaps 10-15% less revenue. However, each property has its niche – some north-end resorts benefit from being near attractions like Broadway at the Beach or having more pools/waterparks on-site. Holiday Pavilion’s competitive edge is being downtown, walkable to restaurants, the Ferris wheel, and nightlife, which is a big draw for guests.

• Cap Rates: Investors often compare cap rates. A well-run oceanfront condo in Myrtle Beach typically might net a cap rate around 5-8% on cash purchase, depending on management efficiency. As shown, Holiday Pavilion’s studios can hit ~10% (exceptionally high) and 1BRs around 6%. Other Boardwalk-area condos likely fall in the middle of that range. For instance, if an Atlantica 1BR is $180k and grosses $30k with $20k expenses, that’s $10k net or ~5.5% cap – a bit lower than Holiday Pavilion’s equivalent. Each resort’s HOA fee also affects this: some have slightly lower HOAs but maybe fewer utilities included. Holiday Pavilion’s HOA at ~$736/month is actually in line with similar full-service resorts (others range from ~$600 to $800/month for 1BR units, depending on what’s included). So the playing field on HOA is fairly level; differences in net ROI come more from rental performance.

• Amenities and Reviews: Holiday Pavilion’s guest ratings are very good (8.1/10 on Booking). Comparable properties like Bay View or Camelot often have similar or slightly lower ratings; for example, many older oceanfront hotels in Myrtle Beach hover around 7.5–8.0 ratings as they age. A higher guest rating can correlate with more bookings and the ability to charge higher rates. Holiday Pavilion being recently ranked #1 on Expedia is a strong testament to its popularity. Meanwhile, some competitors might not achieve that accolade. As an investor, buying into a building with a strong reputation can give you a head start – you’re leveraging the brand/name of the resort as much as the unit itself.

In general, Holiday Pavilion holds its own or outperforms similar Myrtle Beach oceanfront condos when it comes to the balance of purchase price and rental income. It’s a true “condotel” (front desk, amenities, etc.), which appeals to many vacationers. Some alternative investments could be non-condo hotel units, such as condos in complexes without a front desk (where Airbnb is the sole channel). Those might have lower HOA fees, but they also might not attract as many guests due to lack of amenities or require more marketing effort from the owner. The Boardwalk location of Holiday Pavilion is a unique selling point that few other condos can claim – only a handful of buildings share that central strip. This gives it a bit of an economic moat in terms of desirability for nightly rentals.

Bottom line for comparisons: Holiday Pavilion is a strong contender in Myrtle Beach’s oceanfront investment scene. It offers above-average rental returns for a below-average unit size, which indicates efficiency. When comparing options, investors should consider the slight premium in cost for top locations like this, but also the premium in rental rates they can charge. Often, the net profits end up better in a high-demand location even if the cost basis is a touch higher.

Investor Profiles and Strategies

Who should consider investing in a Holiday Pavilion condo, and how can different types of investors approach this opportunity? The good news is that these units can fit a variety of investment strategies, from a part-time landlord looking for a vacation home that pays for itself, to a savvy investor executing a 1031 exchange. Below we provide insights tailored to several investor profiles:

First-Time Vacation Rental Investors

For a first-time investor in real estate or vacation rentals, Holiday Pavilion offers an accessible entry point. The relatively low prices (compared to most real estate) mean a smaller down payment and less risk than buying a large house. First-timers will appreciate that the property is turnkey – units are typically sold fully furnished and already set up for rentals. You don’t need to do renovations or buy furniture to start generating income. Additionally, the active rental history can guide your expectations (you can often ask the seller or property manager for past rental statements as proof of income). A newbie investor should take advantage of the on-site rental program (if they prefer a hands-off approach initially) or use local property management if not ready to self-manage; this can reduce the learning curve. Keep in mind, with platforms like Airbnb and VRBO, many first-timers successfully manage remotely – Myrtle Beach has plenty of cleaning and maintenance services you can contract out. The key advice for first-timers is to run the numbers conservatively: account for all expenses, and assume you might not hit the absolute peak rental income in your first year as you learn the ropes. Even then, the investment can more than pay for itself. As one industry rule of thumb, a 5% cap rate is considered a decent return for a newbie rental investor, and Holiday Pavilion can exceed that. Moreover, you get some personal use out of it – many first-time buyers love the idea of enjoying free vacations in their own condo while renters cover the bills the rest of the year.

1031 Exchange Participants

If you’re coming in with a 1031 exchange (i.e. you sold another investment property and want to defer taxes by reinvesting), Holiday Pavilion units can be ideal replacement properties. The IRS rules for 1031 allow swapping into “like-kind” real estate, and a condo that is rented counts as investment property. One strategy some exchangers use is to buy multiple smaller condos to replace one larger property – for example, selling a duplex elsewhere and using the proceeds to buy two oceanfront condos. Holiday Pavilion’s price point makes it feasible to split funds and diversify into more than one unit (possibly even one oceanfront and one oceanview to spread out your investment). This can diversify your income streams and reduce risk (if one unit has a slow month, maybe the other picks up). Timing is critical for 1031 buyers – you have identification and closing deadlines. Fortunately, there are usually several units available for sale at Holiday Pavilion or similar resorts at any given time, so finding a suitable unit within your 45-day ID window is achievable. Another benefit for 1031 investors is that you can continue deferring gains into the future; you could hold the condo for a number of years, enjoy the income, then 1031 exchange it again into another property later (perhaps trading up to a larger condo or multiple units). It’s also worth noting that a short-term rental condo can qualify for personal use and still be part of a 1031, as long as you adhere to guidelines (generally, personal use should be limited to satisfy the primarily investment use – often no more than 14 nights a year or 10% of rented days, to be safe). Consulting a CPA on this is wise, but many investors successfully combine vacation enjoyment with 1031 rules. Overall, Holiday Pavilion provides strong rental performance in a price range that fits many 1031 budgets, making it a popular choice for those looking to reinvest sale proceeds from other markets.

Professionals and Business Owners (Diversification and Semi-Retirement)

Busy professionals (doctors, lawyers, corporate managers) and small business owners often seek investment real estate as a way to diversify their portfolio and generate passive income. For these investors, a Holiday Pavilion unit can serve as a “hands-off” income property or even a semi-retirement plan. Professionals and entrepreneurs often have high incomes and are looking for tax write-offs – owning a vacation rental can provide depreciation deductions and expense write-offs that help offset other income (especially if you qualify as a real estate professional or materially participate, but even as a passive investor you get deferral benefits). A small business owner might also use rental property income to supplement their irregular business cash flow, essentially creating a more stable income stream on the side. Holiday Pavilion is attractive here because you can let the on-site management handle everything for a cut, which turns it into a mostly passive investment. Alternatively, one can hire a local property manager (typical fee ~20-25% of gross) to handle bookings, guest communications, and maintenance, which is still a much smaller cut than the on-site program. For a professional who doesn’t have time to field guest messages, this is a common route. The ROI, as discussed, is solid even after paying a manager – for example, a $32k gross minus 25% ($8k) manager fee leaves $24k, which after $22k expenses still nets ~$2k profit, plus all the loan principal pay-down and appreciation that build wealth in the background. Many investors in this category also appreciate the lifestyle aspect: you have a beachfront retreat to use for family vacations, client entertainment, or employee incentives. Owning at a recognizable resort like Holiday Pavilion can be a point of pride and enjoyment, not just a line on a balance sheet.

Additionally, for those thinking long-term, owning a few such condos could become part of a retirement strategy – one could eventually even move into one for part of the year (though HOA rules would need checking, as some condotels discourage full-time residence; however, “long term rental allowed” suggests it’s possible to occupy longer term). Some business owners use their SMSF or business entities to hold properties; while that requires careful structuring, it’s a way to diversify business profits into real estate. Overall, for high-income professionals and entrepreneurs, Holiday Pavilion condos offer an appealing mix of passive income, tax benefits, and personal enjoyment, all while diversifying away from the stock market or one’s own industry. As a diversified investor, you might not expect to get rich off one condo, but it can be a stable, inflation-hedged asset – and one that arguably provides more fun than a bond fund or REIT share.

Using Retirement Funds (401(k)/IRA) to Invest

Investors may wonder if they can tap into 401(k) or IRA funds to purchase a vacation rental like this. While you generally cannot purchase real estate directly with a traditional 401(k) (tax-deferred accounts can’t directly hold property), there are a couple of strategic avenues to explore:

• Self-Directed IRA (SDIRA): It’s possible to roll over funds from a 401(k) into a self-directed IRA, which can be used to invest in real estate. An SDIRA is basically an IRA with a custodian that allows alternative assets. Using this structure, your IRA would own the condo (all rental income would flow back into the IRA, and expenses paid from it). This lets you leverage retirement savings to buy the property. Pros: You preserve the tax-advantaged status – rental income grows tax-deferred (or tax-free if using a Roth IRA rollover). Cons: All property expenses must be paid from the IRA (you can’t pay personally), and you cannot personally use the property (no mixing personal pleasure with IRA-owned asset, as that would be a prohibited transaction). Despite these limitations, SDIRAs give you more control over retirement investments and let you diversify out of stocks. Many investors use them to buy rental properties, and a Myrtle Beach condo could be a suitable asset if the numbers work. Ensure you have enough in the IRA for the purchase and a cushion for expenses; loans on IRA-owned property are tricky (must be non-recourse loans), so cash purchase via IRA is simpler.

• 401(k) Loan: If your 401(k) plan allows loans, you can potentially borrow from your 401(k) and use that money as the down payment (or even full purchase, if your balance and plan rules permit). The IRS allows up to $50,000 or 50% of your vested balance (whichever is less) to be borrowed, typically repaid over 5 years (longer if for a primary home). Using a 401(k) loan to fund your condo purchase can be smart because you’re essentially paying interest to yourself. For example, you borrow $50k at, say, 5% interest from your 401k; you pay it back via payroll, and that 5% interest goes into your own account. Meanwhile, you deployed the $50k to generate maybe 15-20% ROI in the condo – a spread in your favor. This strategy has risks (if you leave your job, the loan may become due quickly, and if you default it’s treated as a withdrawal with taxes/penalty), but it can be a viable way to use retirement savings without early withdrawal penalties. Essentially, it’s leveraging your savings for potentially higher returns, as long as you’re disciplined with repayment. Many folks who are averse to actually withdrawing retirement money (and paying taxes/penalties) find the loan approach a good middle ground.

• Rollovers to Solo 401k or Checkbook IRA LLC: For self-employed individuals or small biz owners, setting up a Solo 401k plan or an IRA-owned LLC (sometimes called a “checkbook control” IRA) can give additional flexibility to invest in property. These advanced methods let you act quickly on deals and sometimes even leverage financing more easily. They are beyond the scope of this article, but worth mentioning as an avenue for using retirement funds.

In short, you can use retirement funds to invest in a Holiday Pavilion condo, but you must do it in IRS-approved ways to avoid penalties. Whether through an SDIRA or a 401k loan, it’s about redirecting what is traditionally a stock/bond portfolio into a hard asset. One must weigh the benefits – real estate can offer stability, inflation hedging, and cash flow, which might outperform a 401k’s typical mutual funds. As one expert insight puts it: diversifying your retirement savings into real estate can reduce overall risk and provide a more predictable income stream compared to stock market volatility. The key is to consult with a financial advisor or CPA experienced in self-directed retirement investing before executing such strategies. There are specific rules to follow, but thousands of investors have successfully bought rental properties with their retirement funds. Holiday Pavilion’s price range might align well for someone with, say, $200k in an IRA – they could buy a condo inside the IRA and still have reserves. Or someone with a steady job and a healthy 401k could loan themselves the down payment for a financed purchase. This flexibility opens the door for small business owners and professionals (who often have significant funds in 401k/SEP accounts) to participate in the vacation rental market without liquidating their nest egg and incurring penalties.

HOA Policies and Fees Specific to Holiday Pavilion

We’ve touched on HOA fees earlier; here we’ll summarize the HOA structure and policies unique to Holiday Pavilion Resort, as these are crucial for any investor to understand:

• Monthly HOA Fee: Approximately $736 per month for a typical unit. This fee is billed quarterly in many resorts (so around $2,208 per quarter). The fee might vary slightly by unit size or view (oceanfront units could be a bit higher if they are larger square footage, etc.), but mid-$700s is a good ballpark. Efficiency units may have a somewhat lower fee than 1-bedrooms, but given they quoted $736 for presumably a 1BR, an efficiency might be in the $600s. Always verify the current HOA fee before buying, as they can change year to year based on the HOA budget.

• Inclusions: The HOA fee covers a comprehensive list of items: Building insurance, all utilities (electricity in unit, water/sewer, cable TV, internet), maintenance of common areas and pools, pest control, security, trash pickup, and administrative costs (HOA management, legal/accounting). This all-inclusive structure means owners have very few extra bills. Notably, having electricity included is a big perk – running AC in summer for guests can be costly, but here it doesn’t directly come out of your pocket beyond the fixed HOA fee. The inclusion of internet and cable is also convenient; your guests will always have WiFi and TV provided as part of the stay, with no extra contracts for you to manage.

• Resort Amenities and Access: The HOA dues ensure that all owners and their guests have access to the resort amenities: indoor/outdoor pools, lazy river, hot tubs, fitness center, etc. There might be resort rules (for example, pool hours, wristbands for guests to use facilities, etc.), which are handled by the property management. As an owner, you typically get some owner privileges like parking passes and the ability to use facilities even when not staying overnight (this can vary, but many condotels allow owners to enjoy the amenities anytime).

• Front Desk and Rental Program: Holiday Pavilion likely has an on-site front desk that manages check-ins for those in the rental program and assists guests. If you self-manage, you have a couple options: you can still allow your guests to check in via the front desk for a fee (some condos charge owners a fee for off-program check-in service), or you handle it by providing guests a keypad code or meeting them, etc. Many owners install digital lock systems so guests can go directly to the unit. HOA policies might require registering your guests with the front desk/security for safety. It’s important to clarify whether the HOA charges any additional fees to owners who rent on their own. Some resort HOAs impose a one-time cleaning or admin fee per stay for self-managed rentals to cover wear on common areas – not sure if Holiday Pavilion does, but it doesn’t seem mentioned in sources. The HOA’s official stance is friendly to rentals: as shown, they explicitly list “Short Term Rental Allowed” in community features. This means the HOA rules do not restrict you from using Airbnb/VRBO; some condos elsewhere have tried to ban short-term rentals, but here it’s part of the business model.

• Owner Use and Restrictions: Owners can use their condo for personal stays. There is typically no limit (you own it, you can stay whenever as long as not rented). However, if you’re in the on-site rental program, they might have policies like needing to reserve your own unit in advance or limiting peak season owner usage (since they want it rentable). If you self-manage, you have complete flexibility on when to block off your calendar for yourself. The HOA may require that at least one person on the deed is over 21 (since minimum check-in age is 21 for guests, they likely want owners to be adults — this is usually a non-issue). Also, no pets for renters is standard; owners might be allowed to have a pet when they visit, or they might also be restricted – many Myrtle Beach resorts do not allow even owners to bring pets due to insurance and allergen reasons, so check bylaws if that’s important to you.

• Maintenance and Assessments: HOA covers routine maintenance, but investors should inquire about any pending special assessments or recent projects. Oceanfront buildings can have expensive upkeep (elevators, roofs, facade, etc.). A well-run HOA will have reserves for these. Holiday Pavilion was built around 1998, so it’s a relatively modern building (not one of the 1970s builds). It likely has had renovations (lobby updates, etc.) in the past decade. No major assessment is known publicly, but it’s wise to review the HOA financials during due diligence. The Beach Pro Team site suggests tools for analyzing HOA budgets – doing so can help ensure the HOA is solvent.

• HOA Rules: Some specific rules from HOA might include: no motorcycles or trailers (some condos restrict them; however, interestingly the amenities list shows “Owner Allowed Motorcycle”, so bikers are welcome which is great for attracting guests during bike weeks), parking rules (1 parking pass per unit typically, as noted on Booking.com policy), no smoking in units or balconies (common rule nowadays), and adherence to noise and occupancy limits (a 1BR typically has max 6 persons, an efficiency 4-5 persons as per listings). These are standard hospitality rules to ensure everyone enjoys the property.

In essence, the HOA at Holiday Pavilion is robust and investor-friendly: it covers the essentials, allows flexible rental management, and supports the resort’s operations to keep guests happy. The fees are a sizable portion of expenses, but they ensure the property is well-kept and that your guests have a seamless experience (which translates to good reviews and repeat bookings). Always make sure to get the latest HOA disclosure when buying – it will spell out the exact fee, what it covers, and any rules you need to follow as an owner. Being informed about the HOA is crucial because as an investor you want to avoid surprises that could affect your returns (like a sudden fee hike or a rule change). So far, Holiday Pavilion’s HOA appears stable and aligned with the interests of rental owners, given the available information.

Conclusion

Holiday Pavilion Resort on the Boardwalk presents a compelling case for investors looking at short-term vacation rentals in Myrtle Beach. Over 2023–2024, it has demonstrated strong rental performance – high occupancy in peak seasons, solid average nightly rates, and impressive gross income numbers for its size. The combination of affordable purchase prices (mid-six-figures or less) and robust rental demand yields attractive cap rates, especially for cash buyers of the oceanfront studios that have been netting around 10% returns. Even one-bedroom units, while slightly lower in percentage returns, offer steady cash flow and the upside of appreciation (units appreciated ~75%+ over the last decade). When benchmarked against similar oceanfront condos, Holiday Pavilion holds its own due to its unbeatable location and amenities, which translate into rental desirability.

For investors of various stripes – whether you’re a novice buyer, moving funds via a 1031 exchange, a busy professional seeking passive income, or someone looking to leverage retirement savings – there are strategies to make a Holiday Pavilion condo work for you. First-timers can take comfort in the established track record and possibly lean on on-site services, while more experienced or resourceful investors can maximize profits by self-managing across Airbnb/VRBO and using creative financing or tax strategies. The key is due diligence: understand the HOA, run realistic projections, and align the investment with your financial goals and capabilities.

Myrtle Beach’s vacation rental market can be dynamic – influenced by tourism trends, economic cycles, and even hurricanes – but it has proven resilient with a strong rebound after downturns and continued popularity as a family destination. Owning a piece of this market at Holiday Pavilion not only offers the potential for a healthy ROI and annual income (with the bonus of personal vacation use), but it also positions you in a tangible asset that tends to appreciate over time while generating cash flow. That dual benefit is what real estate investors covet.

As always, investors should consult with local real estate professionals, review all financial documents, and perhaps even talk to current owners if possible, to get nuanced insights. But from the data and performance we’ve reviewed, Holiday Pavilion Resort stands out as a lucrative investor-oriented property. It marries the worlds of hospitality and real estate investment in a way that can provide both enjoyment and profit. In an era where inflation and market volatility are concerns, owning a cash-flowing beachfront asset can be a rewarding strategy. With prudent management, a unit at Holiday Pavilion can effectively “pay for itself” and then some, all while you build equity for the future.

Sources:

1. Kunasek, Brandon. “Holiday Pavilion Resort: Oceanfront Condo Investment Destination.” LinkedIn Pulse, Sep 27, 2024. (Data on unit sizes, prices, and rental income)

2. Agoda.com. Holiday Pavilion Resort on the Boardwalk – Myrtle Beach. (Noting average nightly rate vs city average)

3. Key Data Dashboard. Investment Destination Spotlight: South Carolina. (Myrtle Beach tourism trends 2023: occupancy and RevPAR changes)

4. Booking.com. Holiday Pavilion Resort on the Boardwalk – Guest Reviews. (Overall resort rating 8.1/10 from 2,279 reviews)

5. Airbnb.com. Holiday Pavilion Resort on the Boardwalk – Airbnb Listing. (Example Airbnb rating 4.58/5 from 48 reviews)

6. Vrbo.com. Holiday Pavilion Resort on the Boardwalk – Vacation Rentals. (Example VRBO rating 9.2/10 from 31 reviews)

7. BeachProTeam (RE/MAX). MLS Listing #2207898 – Holiday Pavilion Unit 709. (HOA fee and inclusions, condo details)

8. Kunasek, Brandon. “Debunking 8 Myths About Using Your 401(k) to Invest in Real Estate.” LinkedIn Pulse, Dec 11, 2024. (Using retirement funds for real estate investing)

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.