Laguna Keyes – North Myrtle Beach Oceanfront Condo Investment

Laguna Keyes is a 14-story oceanfront condo tower (5700 N. Ocean Blvd) in the Cherry Grove section of North Myrtle Beach. Built in 2004–2005, it offers 97 units (1–4 bedrooms plus penthouses) with floor-to-ceiling glass and private balconies. Units come fully furnished with high-end finishes (stone/granite counters, ceramic tile). Resort amenities are extensive: an indoor pool, oceanfront outdoor pool, kiddie pool, Jacuzzi, lazy river, fitness room, covered parking and Wi-Fi. Laguna Keyes was designed as a “luxury” beach resort – for example, one agent notes that Laguna Keyes “was, and is, hard to top” among Cherry Grove condos.

Unit Types and Sizes

Laguna Keyes units range from one-bedroom (sleeps 4) up to four-bedroom penthouses. Sample sizes and recent pricing include:

• 1BR/1BA (sleeps 4) – ~576–675 ft² (one-bedroom units). Example: Unit #708 (576 ft²) sold for $295,000 in 2024.

• 2BR/2BA (sleeps 6–8) – ~1,100–1,200 ft². Example: Unit #601 (1,131 ft²) sold for $440,000.

• 3BR/2–3BA (sleeps 8–10) – ~1,250–1,400 ft². Example: Unit #1205 (1,296 ft² living area) sold for $565,000 in 2024.

• 4BR/3BA Penthouse (sleeps 10+) – ~1,733 ft². Example: PH-12 (4BR/3BA) listed for $799,000. (Note: Penthouse floors are generally not permitted for short-term rentals.)

These prices reflect mid–late 2023 and 2024 sales/listings, but resale values can fluctuate. In general, prices scale roughly: ~$300K for a 1BR, ~$400–460K for a 2BR, ~$550–620K for a 3BR, and ~$800K+ for a 4BR penthouse.

Short-Term Rental Performance

Laguna Keyes is a permitted short-term rental resort, and units are commonly listed on Airbnb, VRBO and other platforms. Market data for North Myrtle Beach show a healthy vacation rental demand: recent analytics report an average occupancy of ~57–58% and an ADR (all rental platforms combined) around $340/night (AirDNA, Feb 2024). This implies a typical condo is rented ~210–220 nights/year. Actual performance varies by unit size and season.

For example, analytic tools predict the following annual performance for Laguna Keyes units (assuming year-round Airbnb/VRBO listing):

• 3BR/3BA example: BNBCalc projects ~68% occupancy with a $292 ADR, yielding ~$72,500 annual revenue (approx. $4,250 avg weekly in summer, lower off-season). This ranked in the top ~46% of local rentals.

• Another 3BR example: An estimate of 64% occupancy at $263 ADR gives ~$68,700 revenue.

By extension, smaller units have lower revenue. A 2BR might see ~60–65% occupancy at ~$220–250 ADR (perhaps ~$50–55K/yr revenue), and a 1BR perhaps 50–60% occupancy at $150–200 ADR ($30–40K/yr). In high summer months (June–Aug) occupancy often exceeds 80% (with nightly rates $300+), while off-season (Dec–Feb) bookings can drop below 30% with lower winter rates ($100–150/night). (Airbtics confirms July is the peak month, with winter months generating the lowest revenue.)

Guest reviews on VRBO/Airbnb/TripAdvisor are generally positive. Reviewers consistently praise Laguna Keyes’ beachfront location, well-maintained rooms, and amenities – “nice clean rooms… indoor and outdoor pool, lazy river, 2 hot tubs, and a kiddie pool”. Typical comments note the resort’s family-friendly atmosphere, quiet Cherry Grove setting, and ocean views. (Some guests mention that unit decor/updates depend on the owner and that occasional maintenance issues can arise in this older building, but these are relatively rare compared to the resort’s positives.)

Financial Analysis

Below are illustrative financial models for Laguna Keyes units under (a) all-cash purchase and (b) 25% down mortgage scenarios. Assumptions (as of 2025): full purchase of a comparable unit (1BR/2BR/3BR as above), current HOA dues (estimated from listings), property tax ≈1% of purchase, condo insurance ≈0.5% of purchase, utilities ~$100–150/month, and professional management fee of 20% of gross rent. Gross rental income is based on the occupancy/ADR examples above. Results show estimated Cap Rate and Cash-on-Cash return for each case.

Table 1: All-Cash Investment (Annual Income & Expense)

Notes: Gross rent (before management fees) is based on ~60–68% occupancy with ADRs of $150–$300 depending on unit size and season (e.g. $72,500 for the 3BR example). Net Operating Income = Gross Rent – (HOA + taxes + insurance + utilities). Cap Rate = NOI ÷ Purchase Price. All-cash Cap Rates are roughly 8–9% under these assumptions. (If professional property management at ~20% of rent is used, net income and Cap Rates would be lower, on the order of 5–6%.)

Table 2: 25% Down (Financed) Purchase

Notes: Mortgage payments assume a 6.0% interest 30-year loan. Annual Mortgage = P&I on loan. Cash Invested = down payment. NOI after debt = (Gross Rent – all expenses – mortgage). Cash-on-Cash Return = (NOI after debt) ÷ Down Payment. (We see that mortgage debt greatly lowers cap rates (to only 2–3% in these examples), but Cash-on-Cash returns remain in the 10–13% range, since only 25% equity is deployed.)

These models are illustrative; actual yields will vary by specific unit, financing terms, rent levels and occupancy. Always verify current HOA dues, taxes and insurance quotes.

Tax Strategies

Depreciation: As a rental, the condo building (not land) can be depreciated over 27.5 years. For example, on a $450K purchase (assuming 90% allocable to structure), the annual depreciation deduction is roughly $(450K×0.90)/27.5 ≈ $14,700/yr. This non-cash write-off can offset rental income and other passive income, lowering taxable income.

Cost Segregation: A cost segregation study can accelerate depreciation by reclassifying certain components (HVAC, carpet, appliances, cabinetry, etc.) into shorter 5–15 year depreciation categories. This can front-load deductions in early years, boosting tax savings in the first 5–10 years of ownership.

1031 Exchange: If selling one investment property and buying another similar “like-kind” property, a 1031 exchange lets you defer capital gains taxes. For example, proceeds from a sold Laguna Keyes unit could be reinvested in another rental (e.g. a different condo or commercial property) via a qualified intermediary, delaying tax on the gain until a later sale.

Retirement Account (IRA/401(k)) Use: It is possible (though complex) to hold real estate inside a self-directed IRA or Solo 401(k). The purchase and rental would then be tax-advantaged (no current income tax on rental profits or deferred tax). However, strict IRS rules apply (no personal use, all expenses paid from the IRA, possible UBIT tax if leverage is used, etc.). High-net-worth investors sometimes use a self-directed “checkbook IRA” structure to buy rental condos like Laguna Keyes without immediate taxation on income. Consultation with a tax attorney or CPA familiar with real estate IRAs is essential.

Management and Technology Tools

Investors must decide between self-management and professional management. Self-managing (handling bookings, guest communication, cleaning/maintenance, check-in/out, etc.) saves the 15–30% management fee but requires time and local presence or a local partner. Professional vacation rental managers charge a percentage of rental revenue (often 20–25%) but handle all day-to-day tasks, emergency responses, housekeeping coordination, and marketing on platforms (Airbnb, VRBO, Booking.com, etc.).

Popular booking channels include Airbnb, VRBO and Booking.com. Many owners use channel manager platforms (e.g. Guesty, OwnerRez, Hostaway) to synchronize availability and pricing across sites. Dynamic pricing tools (PriceLabs, BeyondPricing, Wheelhouse) can optimize nightly rates in real time based on season, demand, and local events. Automation apps like TurnoverBnB and Breezeway help schedule cleanings and maintenance. Smart locks and check-in apps (e.g. RemoteLock, August) reduce staffing needs.

In summary: Self-management can improve net returns by avoiding fees but requires reliable systems (key exchange, cleaners, maintenance on-call) and typically 10–15 hours/week of work per property. Professional management reduces hands-on effort and often yields higher occupancy through marketing, at a cost (roughly 20% of gross rent). Some owners choose a hybrid (e.g. listing on Airbnb themselves but hiring a cleaning service and a local handyman).

Competitive Comparison – North Myrtle Oceanfront

Laguna Keyes competes with other oceanfront resort condos in North Myrtle Beach. Notable nearby complexes include Carolina Keyes (Cherry Grove), Sea Vista (Ocean Drive), Sea Marsh (Arcadian Section), Bluewater Keyes (just south on Ocean Blvd), and older towers like Compass Cove. Generally, Laguna Keyes rates are on par or slightly higher due to its amenity set and modern look.

• Location: Laguna Keyes fronts Cherry Grove Beach (near Cherry Grove Pier) – a quieter area popular with families. It is arguably in a better residential spot than some South Ocean Blvd towers.

• Amenities: Many neighbors offer pools and gyms, but Laguna’s lazy river and dual pools set it apart. For example, Sea Vista and Carolina Keyes lack a lazy river.

• HOA and Assessments: HOA dues vary across resorts. Laguna’s HOA ($500–$1,000/mo by unit size) is similar to Carolina Keyes and somewhat higher than older buildings without extensive amenities. Higher HOAs can reduce net yield, but they cover most utilities (water, sewer, trash, cable, etc.), simplifying landlord responsibilities.

• Demand and Rates: Cherry Grove generally commands higher summer rates than central NMB. For example, a 2BR in Carolina Keyes might sell for ~$430K, with similar summer ADR, but Laguna’s updated finishes and amenity focus often allow a rate premium. AirDNA shows North Myrtle Beach overall occupancy (57–58%) outperforms Myrtle Beach city (∼50–56%). Within North Myrtle, Laguna Keyes ranks among the top-tier properties (BNBCalc noted a Laguna 3BR in the top ~45% for revenue), indicating strong guest demand.

Overall, Laguna Keyes offers competitive investment value: its combination of location, quality, and amenities supports solid income and occupancy. While other resorts may have slightly different HOA or unit characteristics, none dramatically undercut Laguna in market appeal. For example, older towers like Compass Cove or Palms (just south in Garden City) have lower nightly rates but also higher risk of obsolescence. Newer nearby oceanfront projects are scarce; thus Laguna Keyes remains a flagship NMB beachfront condo.

Sources: HOA, sale prices, and amenity info from local MLS and rental agency listings. Market and rental analytics from AirDNA and third-party analytics. Guest feedback and resort features from management sites and reviews.

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.