Kings View Villas (North Myrtle Beach) – Investment Overview

Kings View Villas is a three-story oceanfront condominium complex in the Cherry Grove section of North Myrtle Beach (built 1977). It offers exclusively 2-bedroom units with private balconies and beach access. Ground-floor units (A1, C1, D1, etc.) are ~864 sq ft with two full baths, while many second-floor corner units add a half-bath (2.5 baths, ~924 sq ft). For example, Unit A‑1 (oceanfront end-unit, first floor) is 2 BR/2 BA (864 sq ft), Unit B‑2 (second floor) is 2 BR/1.5 BA (924 sq ft), and Unit E‑2 (second floor) is 2 BR/2.5 BA (924 sq ft). A typical layout includes a kitchen/living area with balcony view, two bedrooms (master with ocean view), and a stackable laundry. Units are fully furnished and often recently renovated (LVP floors, granite counters, stainless appliances).

• Units & Layouts: All condos are 2 BR. First-floor (1st level) units have 2 full baths; many 2nd-floor units add a half-bath. Sizes range ~864 sq ft (heated area) to 924 sq ft (including AC closet/half bath). For example: A‑1, C‑1, D‑1, etc. – 2 BR/2 BA, 864 sq ft; A‑2, B‑2, C‑2, D‑2 – 2 BR/1.5 BA, 864–924 sq ft; E‑1 – 2 BR/2 BA (first floor); E‑2 – 2 BR/2.5 BA, 924 sq ft. (All have beachfront balconies; end units have extra windows.)

• Amenities: Kings View Villas offers private beach access, a large oceanfront swimming pool and sundeck, outdoor showers, two gas grills, and free parking. The HOA fee (~$833/mo) covers beach access, pool, cable/Internet, pest control, water/trash, basic insurance and maintenance. The complex is pet-friendly and permits short-term rentals (its zoning even expressly allows STRs).

Unit interiors are well-appointed (new flooring, granite counters, stainless appliances). In bright oceanfront condos, sliding glass doors open to private balconies overlooking the dunes and Atlantic (as in this ground-floor unit above). Guest reviews frequently praise the views, updated interiors, and convenience of beach access – for instance, a VRBO listing for Unit E2 (pictured) earns a 9.4/10 average rating. (Typical comments highlight “stunning sunrise views” and cleanliness.) Some guests note the building’s 1970s construction (e.g. no elevators) and occasional maintenance issues as minor drawbacks.

Short-Term Rental Performance: North Myrtle Beach vacation rentals are strong earners, especially on Cherry Grove. According to AirDNA, the North Myrtle Beach market averages 57% occupancy with an ADR ~$341. At 57% occupancy (≈208 nights/year) this implies roughly $71K gross revenue annually, but actual market median annual revenue is about $34.9K (reflecting a mix of all listings). Occupancy and rates peak in summer (often 75–85% in June–Aug) and fall in winter (down into 30–40% by Dec–Feb), with spring/fall as shoulder seasons. Kings View Villas’ oceanfront location and updated units generally allow nightly rates comparable to other 2 BR oceanfront condos (often $300–$450 peak season).

Guest reviews on Airbnb/VRBO (e.g. E2 listing) average in the 9–10/10 range, indicating high guest satisfaction. Positive aspects cited include the panoramic beach views, spacious balcony, pool and quick beach access. Negative comments (rare) have mentioned only minor issues like dated aspects in common areas or check-in instructions. Local news noted 2024 saw a slight dip in short-term rental occupancy (~7% below 2023) in the Grand Strand, but KVV’s direct oceanfront appeal helps maintain strong demand.

Financial Model: To analyze returns, assume a sample purchase price of $350,000 (recent sales: A‑1 sold $345K; C‑1 $335K; E‑2 $385K). Major annual expenses include HOA ($833/mo⇒$9,996/yr), property taxes ($2,492/yr), insurance (~$1,500), utilities (electric, water ~$2,400), and management (~20% of rents). Using AirDNA averages, gross rental income might be around $35,000/yr.

Table: Cashflow and return estimates (sample). Figures are illustrative.

• All-Cash: With no mortgage, NOI ≈$11.6K gives a ~3.3% cap rate (quite low, due to high HOA and modest rental). This assumes $35K gross rent. Cap rates in this market for oceanfront condos often run 4–6%; our moderate ADR/occupancy yields ~3–4%.

• 25% Financed: On $87.5K down, the 30-yr loan (7%) has payments $20.95K/yr, so cash flow is strongly negative (–$9.3K above). Cash-on-cash return is roughly –10%. In practice, higher occupancy (or management fee savings) would be needed to break even.

(Note: A higher-income scenario can be modeled. For instance, if gross rent were $50K (about 70% occupancy at $350 ADR), NOI would be $23.1K and cap rate ~6.6%, yielding a small positive cashflow under financing.)

Tax Strategies: Investors can leverage standard rental tax benefits. Annual operating expenses including depreciation offset rental income. For example, IRS rules allow owners to deduct depreciation on residential rentals (27.5-year straight-line). Advanced tactics include cost segregation: an engineering study reclassifies parts of the condo (appliances, cabinets, landscaping, pool) into 5- or 15-year assets to front-load depreciation. This creates substantial paper losses (tax write-offs) in early years, deferring taxes. Similarly, using a 1031 exchange when selling KVV to purchase another investment property lets the investor defer all capital gains taxes (by reinvesting proceeds into a like-kind property).

Another strategy is investing via retirement accounts. A self-directed IRA/401(k) can purchase KVV outright; all rental income and appreciation then grow tax-deferred (or tax-free in a Roth). In that case the IRA owns the property and pays expenses from account funds (strict rules apply). This “Real Estate IRA” strategy allows use of pre-tax retirement capital to acquire real estate without immediate tax costs.

Management: Self vs. Professional: Owners can self-manage or hire a local manager (typically charging 20–30% of gross rents). Self-managing eliminates management fees but requires significant time for guest communications, cleaning coordination and maintenance. Modern vacation-rental software (PMS) can automate many tasks – e.g. handling bookings, sending confirmations, updating calendars, dynamic pricing, and scheduling cleanings. As Hostaway notes, these tools act like “robot assistants” that take the repetitive work out of hosting.

By contrast, a professional manager handles guest bookings, on-site check-in, marketing and cleaning, at the cost of a reduced net. For a first-time or remote investor, pro management offers peace of mind; for an experienced investor comfortable with automation, self-management (or a hybrid using PMS services) maximizes net income.

Market Comparison: Compared to similar properties in North Myrtle Beach, KVV is a well-updated oceanfront complex. Older 2 BR oceanfront condos (like Chateau by the Sea) typically sell for $120K–$340K, reflecting age and finishes. Kings View’s recent sales (≈$335–$385K) are at the high end, justified by full renovations, dual balconies, and private beach access. Incomes are comparable; for example, Chateau units often gross $20–30K/yr, whereas KVV’s higher rates and occupancy push nearer $35K.

Second-row or non–oceanfront comparables (e.g. Mariners Watch, Seaside Villas) sell lower (often $200K–$300K) but also command lower rents. KVV’s direct ocean views give it a premium in both price and appeal. On the other hand, some larger resorts (like The Belvedere or Dunes Village) offer extensive amenities (multiple pools, amenities) and may see slightly higher occupancy, but these come with much higher purchase prices and fees. Overall, KVV strikes a balance: a small, quiet complex with beachfront location that is highly attractive to vacationers, yet less expensive per square foot than large high-rise resorts.

Summary: Kings View Villas offers 2 BR oceanfront condos that can generate solid short-term rental income with professional updates and peak-season demand. However, investors should carefully model costs (notably HOA and financing) to gauge returns. Tax strategies (depreciation, cost seg, 1031, retirement accounts) significantly improve cash flow by reducing tax liability. Ultimately, KVV can suit a first-time or seasoned investor seeking an oceanfront rental in North Myrtle, especially if they leverage automation or management services to optimize occupancy. All data above is based on current listings and market analytics.

Sources: North Myrtle Beach STR data; current Kings View sales/listings; HOA/tax info; IRS rental property guidelines; cost segregation/1031 tax strategy analysis; retirement IRA investing; property management automation overview; area condo comparables.

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.