Investing in Monterey Bay Suites Resort: 2023–2024 Short-Term Rental Performance Analysis

Monterey Bay Suites Resort in Myrtle Beach, SC is a 16-story oceanfront condo-hotel offering one and two-bedroom suites with either direct oceanfront or angled oceanview balconies. For investors eyeing short-term vacation rentals, Monterey Bay presents an appealing mix of rental income potential, resort-style amenities, and a desirable “Golden Mile” location. This article provides a comprehensive, data-driven analysis of the resort’s 2023–2024 rental performance, covering all unit types (1BR and 2BR, oceanfront and oceanview), profitability metrics, fees and policies, and how it compares to other Grand Strand investments. We’ll also discuss strategies like 1031 exchanges and using retirement funds to invest in these condos. The goal is to equip first-time investors, seasoned professionals, small business owners, and those seeking passive income or retirement assets with actionable insights on Monterey Bay Suites as an investment.

Resort Overview and Unit Types

Monterey Bay Suites is a family-friendly, oceanfront resort-condo building on Myrtle Beach’s tranquil north end (the “Golden Mile”). It rises above the sand with 16 floors of suites, most of which feature private balconies. All units are individually-owned condominiums typically sold fully furnished and turnkey for rentals. The standard layouts include 1-bedroom, 1-bath suites (with a separate living area and kitchenette) and a few 2-bedroom, 1-bath units created by clever use of a Murphy bed and an extra sleeping area. Oceanfront units directly face the beach, while oceanview units have partial side views of the ocean. Despite the small footprint (about 500–600 sq. ft for most 1BRs), many units can sleep 6 to 8 guests by utilizing sleeper sofas and wall beds, maximizing rental appeal for families and groups.

Amenities: Monterey Bay Suites offers a range of amenities that attract vacationers year-round. Guests enjoy multiple pools (including a large outdoor pool and an indoor pool), a lazy river, hot tubs, an indoor kiddie pool, and even a 10th-floor rooftop pool and jacuzzi with panoramic views. There’s also a fitness room, on-site breakfast area, and direct beach access with an oceanfront playground. High-speed Wi-Fi and cable are provided, and the building is non-smoking for all units. These resort features enhance guest satisfaction and support strong occupancy even outside of peak summer, as visitors have plenty of on-site entertainment in cooler months. Monterey Bay’s location is another asset: it’s in a quieter, upscale residential stretch of Myrtle Beach, yet within minutes of major attractions (Broadway at the Beach, golf courses, shopping, etc.). This combination of a peaceful setting and convenience is a selling point in marketing the rentals.

Rental Income and Occupancy Performance (2023–2024)

Monterey Bay Suites condos generate income primarily through short-term vacation rentals on platforms like Airbnb and Vrbo or via the resort’s in-house rental management program. How did these units perform in 2023, and what trends are we seeing into 2024? Let’s dive into occupancy, average rates, and gross revenue figures using the latest data:

• Overall Myrtle Beach Market: In 2023, the Myrtle Beach area’s short-term rentals averaged around 55–62% occupancy for the year. This translated into roughly 226 nights booked per year for a typical listing (out of 365). Average daily rates (ADR) across all property sizes were about $168 – $248, with higher-end homes pulling the average up. The “typical” short-term rental host in Myrtle Beach earned approximately $36,000 in annual rental revenue in 2023. However, that figure includes larger multi-bedroom beach houses; condo units like those at Monterey Bay generally earn a bit less. Performance in 2024 has tempered slightly compared to 2023’s banner year – industry reports show occupancy and ADR down just a few percent year-over-year due to inflation pressures and a surge of new rental supply. Even so, demand remains robust relative to pre-pandemic times; for example, summer 2024 weekly data showed occupancy up 4% and ADR up 21% versus 2019. Myrtle Beach’s popularity hasn’t faded – it was ranked among the top 4 North American summer destinations on TripAdvisor in July 2024 – but guests have more choices, and price-sensitive travelers are seeking deals in shoulder seasons.

• Occupancy & Seasonality: Like most Myrtle Beach resorts, Monterey Bay experiences pronounced seasonality. Expect near-full occupancy (90–100%) in peak summer (June through August), when families book weeklong stays and rates are highest. The shoulder months of April–May and September–October see moderate occupancy (perhaps 50–70% booked) as weather is still pleasant but demand is lower. Off-season winter months (Nov–Feb) are slow, with occupancy dropping to the 20–40% range and many short stays or monthly “snowbird” rentals at deep discounts. It’s common for an oceanfront 1BR condo to command well over $200/night in July but only $60–$80/night in January. The good news is that Myrtle Beach has been pushing more festivals, sports tournaments, and attractions year-round to boost off-season tourism, and events like fall motorcycle rallies or holiday shows do bump occupancy intermittently. Overall, an annual occupancy around 55–60% is a fair baseline for budgeting purposes in these condos.

• Actual Rental Income Examples: Real-world data from 2023 sales gives insight into what Monterey Bay units can gross. A 6th-floor 1-bedroom oceanview suite (unit 635, not direct oceanfront but with side views) earned $17,574 in gross rental revenue for 2023. In contrast, an 11th-floor 1-bedroom oceanfront suite (unit 1105, facing the ocean directly) grossed $24,364 in 2023. That’s roughly a 39% higher income for the oceanfront unit, highlighting the premium guests pay for unobstructed ocean views. These figures are gross rental income to the owner (before expenses like HOA fees, but after any rental commissions). They underscore how a well-positioned 1BR at Monterey Bay can generate around $18K–$25K per year in rental revenue under current market conditions. By comparison, larger units or those in other resorts can earn more: for instance, a 2-bedroom oceanfront condo at Bay Watch Resort in North Myrtle Beach grossed about $34,000 in 2023, and an efficiency suite at the Compass Cove resort (south Myrtle Beach) grossed around $28,600 in 2023 (down from ~$32K in 2022). This puts Monterey Bay’s performance in a similar ballpark with its peer properties, especially considering its 1BR units are smaller. It’s worth noting that Monterey Bay’s “2-bedroom” units (which are essentially an expanded 1BR floor plan with an extra sleeping area) likely achieve closer to the mid-$20Ks in annual revenue – not far off from the 1BR oceanfront numbers, since total unit size is similar. In short, oceanfront 1BR units at Monterey Bay tend to be top earners on a relative basis, comparable to many older 2BR units in the area, thanks to efficient layouts that accommodate families without a huge square footage.

To summarize these rental metrics, here’s a snapshot of typical 2023 income by unit type at Monterey Bay Suites, alongside key expenses:

Table: Approximate rental income and costs for Monterey Bay units. Net income assumes no rental management fee (owner-managed) and excludes mortgage costs. (Taxes and insurance are modest; property tax on a ~$170K condo is around $1,000/year).

As shown above, a one-bedroom unit at Monterey Bay can net somewhere in the mid-$x,xxx range annually after covering its HOA dues and basic expenses, given 2023’s performance. Oceanfront units, commanding higher rates and occupancy, substantially out-earn side-view units – a critical consideration for investors deciding between views. Two-bedroom units (which in Monterey Bay’s case are compact) can earn more gross income, but also incur higher HOA fees. The return on investment thus ends up being of a similar order (roughly 5–10% of purchase price in gross rents, and a more modest ~3–6% net yield after expenses). Keep in mind these are averages; an engaged owner might outperform these numbers through strategic marketing, dynamic pricing, or updates to the unit, whereas an under-maintained unit might earn less.

Profitability, HOA Fees and Ownership Expenses

Rental income is only half the equation – understanding Monterey Bay’s cost structure is vital to gauging true profitability. The largest expense for owners is the Homeowners Association (HOA) fee, followed by rental management costs (if not self-managing), property taxes, insurance, and maintenance. Here’s a breakdown:

• HOA Dues: Monterey Bay Suites’ HOA fees range roughly from $600 up to $950 per month depending on unit size and location. As of 2024, a typical 1BR carries about a $750–$850 monthly HOA, and the rare 2BR units about $938/month. For example, Unit 635’s HOA was $789/month, while Unit 1105’s was $853/month. These fees are relatively high on a per-square-foot basis, but they cover virtually all operating expenses: building insurance, all utilities (electricity, water, sewer, cable TV, and internet), trash removal, pest control, landscaping, pool maintenance, common area upkeep, and professional management of the HOA. In other words, owners do not pay separate electric or water bills, and even unit interior cable/Wi-Fi is included – a common setup in “condotel” resorts. The HOA also maintains the resort amenities (pools, elevators, parking deck, etc.). This all-inclusive fee structure simplifies ownership but creates a high fixed cost each month. An owner must pay the HOA dues regardless of occupancy, so the key is ensuring sufficient rental income to offset this nut. (Notably, the HOA also often covers building insurance; an owner would typically only need an inexpensive contents & liability insurance policy for their unit).

• Rental Management vs. Self-Management: Owners have two main options to handle bookings: join the on-site rental program or manage rentals themselves (or via a third-party manager). Monterey Bay is managed by Brittain Resorts & Hotels, which offers an in-house rental management service to handle marketing, guest check-in, cleaning, and maintenance for a commission. While exact commission rates aren’t published publicly, similar resort programs often charge around 40%–50% of gross rental revenue. If an owner uses the on-site program, their net rental income is the gross (as cited earlier) minus that commission. For instance, if a unit grossed $24,000 to the on-site program, the owner might receive roughly $12–14K after the management split. The advantage of the on-site program is true turnkey simplicity – they handle everything while you collect a (smaller) check, and guests enjoy hotel-like services (front desk, linen exchange, etc.). The disadvantage is the hefty reduction in owner revenue.

  An increasing number of investors choose to self-manage via Airbnb/VRBO to improve profitability. At Monterey Bay, this is permitted – owners can market their condo on rental sites independently (or hire a local property manager for a smaller fee, say 20–25%). Many privately managed Monterey Bay listings achieve higher net income by saving on commissions. Guests renting owner-managed units typically don’t get daily housekeeping or a 24-hour front desk, but with keyless entry and a local cleaning crew, this model has proven workable. (There are even local firms that will handle guest turnover and act as a point of contact for a flat or percentage fee, which can be far less than the on-site cut.) The bottom line: owner-managed rentals can yield 20–30% more net income versus the resort program, in exchange for more active involvement. For example, if our 1BR oceanfront grossed $24K via on-site management (owner got ~$12K), that same unit might gross a similar $24K on Airbnb but with the owner keeping perhaps $21–22K after paying cleaning and platform fees – nearly doubling the net. This can turn a barely break-even property into a solid earner. However, self-management requires commitment to responding to guests, coordinating cleanings, and maintaining quality. Poorly managed units could get bad reviews (indeed a Tripadvisor review cautioned against certain Airbnb-rented units at the resort due to cleanliness issues). So investors should honestly assess their willingness to be an active host or hire a reliable co-host.

• Other Expenses: Property taxes in Horry County are relatively low for non-owner-occupied condos (approx. 1% of assessed value annually). A unit valued around $170,000 might incur about $1,000–$1,500 in property tax per year – which is usually easily covered by one good summer week of rental. Insurance for contents and liability (an HO6 condo policy) might run a few hundred dollars yearly, but remember the HOA’s master policy covers the building structure. Maintenance and Capex: Individual unit maintenance (appliances, wear-and-tear, redecorating) is an out-of-pocket cost. Condo interiors need periodic refresh (new paint, furniture updates every 5-7 years, etc.) to stay competitive in the rental market. Savvy owners budget a portion of income for future upgrades – for instance, replacing that aging sleeper sofa or installing durable LVP flooring to withstand heavy traffic. Fortunately, since these condos are small, the cost to update them is not exorbitant (e.g. $5K can go a long way in a 500 sq. ft. suite). Financing costs: Many buyers pay cash for condotel units, but if financed, note that interest rates and insurance may be higher for condotel loans, and a larger down payment (20–30%) is typically required by lenders who work with these properties. Be sure to factor in mortgage payments if you leverage the purchase, although many investors treat these as cash investments or 1031 exchange targets to avoid financing hurdles.

Net Profit Potential: After accounting for HOA and other expenses, what can an investor realistically pocket? Continuing our example, the 1BR oceanfront that grossed ~$24K in 2023 and had ~$10.2K in HOA fees might pay ~$1.2K in taxes/insurance, leaving roughly $12.6K. If on the resort program, a chunk of that went to management, perhaps leaving only ~$6K net (which on a ~$150K investment is a 4% yield). But if self-managed, the owner might net closer to $12K (an 8% yield). For the oceanview unit grossing ~$17.5K with ~$9.5K HOA, net could range from just ~$4K (resort-managed) up to ~$8K (self-managed). As these scenarios show, the choice of management strategy heavily influences profitability. An investor seeking truly passive income might accept the lower ~3–5% cash yield with full-service management, whereas a hands-on investor can potentially reach closer to ~7–9% net returns by self-managing smartly. Of course, these returns don’t include potential loan payments if financed, but they also don’t include owner personal use benefits (many owners value that they can vacation in their condo, effectively “yielding” enjoyment that isn’t counted in dollars).

HOA Rules, Restrictions and Owner Usage Policies

From an ownership perspective, Monterey Bay Suites is relatively flexible and investor-friendly in terms of usage:

• Rental Restrictions: There are no prohibitions on short-term rentals – in fact the property is specifically designed for them. Both nightly and weekly rentals are allowed, as are longer off-season stays (monthly snowbird rentals). Owners can choose any rental management method as discussed; there is no requirement to use the on-site program (though you’ll often see marketing pitches inviting owners to join it). Long-term rentals (leases over 90 days) are also generally permitted by the HOA, but most owners find higher returns sticking to vacation rentals. The HOA bylaws allow owners to occupy their units for personal use as well, of course.

• Owner Use and Check-In: If in the on-site rental program, an owner typically reserves their own unit through the management (often with some limits to avoid peak season blockage). If self-managing, owners can block off personal dates on their booking calendar freely. One thing to be aware of: if you self-manage, your guests cannot stop at the front desk for keys or service (the front desk will only assist guests of units in the rental program). This means owners must provide guests with entry instructions (key codes, etc.) and handle any issues directly or via their agent. It’s a manageable setup used by many owners (and guests these days are accustomed to app-based check-ins), but worth noting operationally.

• HOA Rules: The resort is family-oriented and non-smoking. No smoking or vaping is allowed in units or balconies (a common rule now in Myrtle Beach high-rises). There is a pet restriction: renters are not allowed pets. Owners may have pets only when they themselves are visiting, and even that may be limited (some condotels ban pets entirely; check current HOA rules if that’s important to you). However, motorcycles and golf carts are allowed on property for both owners and renters, which is notable in Myrtle Beach (many resorts ban motorcycles due to noise – being motorcycle-friendly can attract visitors during bike weeks). The HOA provides on-site security and enforces common-sense rules to maintain a safe environment.

• Assessments: Always a consideration in older oceanfront buildings: HOA will occasionally levy special assessments for major capital improvements (roof, facade, etc.). Monterey Bay was built in 1995, and had renovations over the years (for instance, adding the rooftop amenities). It’s wise to inquire about any pending or recent assessments. Proactive HOAs that maintain reserves can minimize surprise costs. The included HOA fee items like insurance and maintenance reserves suggest the association is structured to handle routine upkeep, but big-ticket projects can occur. So far, we haven’t seen unusual assessment activity, but due diligence is recommended.

In summary, Monterey Bay’s policies are generally favorable to investors: you have control over renting, you can use the property yourself (just keep in mind if you’re doing a 1031 exchange, limit personal use – more on that next), and the HOA takes care of all the heavy lifting maintenance-wise, letting you focus on rental strategy.

Leveraging 1031 Exchanges and Retirement Funds

One unique aspect of real estate investing is the ability to use certain financial strategies to enhance returns or tax efficiency. Monterey Bay Suites condos can be purchased using tools like 1031 tax-deferred exchanges or even through self-directed retirement accounts. Here’s how those work:

• Using a 1031 Exchange: Under IRS Section 1031, an investor can defer capital gains taxes by selling one investment property and reinvesting the proceeds into another “like-kind” investment property of equal or greater value. A condo at Monterey Bay qualifies as like-kind real estate, so you could swap, say, a rental property from another state for one of these beach condos without paying taxes immediately on your gain. Many buyers in Myrtle Beach indeed come via 1031 money, especially if they are transitioning from a more management-intensive property (like an apartment building) into a more hands-off vacation condo. One critical rule: to satisfy the IRS that it’s an investment (and not just a second home), you should adhere to the safe-harbor guidelines – own the property for at least 24 months, rent it out at market rate for at least 14 days each year, and use it for personal enjoyment no more than 14 days (or 10% of the rental days) annually. In practice, this means you can use your Monterey Bay condo a little each year (two weeks or so) and still qualify, as long as it’s mainly a rental. Most owners find that easy to comply with, given the rental demand. Always consult a tax advisor on the specifics, but it’s reassuring that condo-hotel units do qualify for 1031 treatment under IRS guidance. This opens up a great exit strategy too – you can defer gains when you eventually sell the Monterey Bay unit by exchanging again into another property.

• Using a Self-Directed IRA or 401(k): Can you buy a vacation rental condo with retirement funds? Yes – through a Self-Directed IRA (SDIRA) or Solo 401(k) that allows real estate holdings. Some investors use rollover funds from a 401k or an IRA to purchase investment properties for diversification and tax advantages. Purchasing a Monterey Bay condo in an IRA is feasible, but there are important rules. The IRA (or 401k) itself must own the property, and all income and expenses must flow through the retirement account. Critically, the owner cannot personally use the condo at all if it’s owned by their IRA – it must be purely an investment asset (personal use would be a prohibited transaction). In essence, the IRA benefits from the rental, not you personally, until you withdraw funds in retirement. Additionally, if the IRA property has a mortgage or generates profit, there could be tax implications like UBIT (Unrelated Business Income Tax) to consider. Despite these hurdles, it can be a powerful way to grow retirement savings with rental income that is tax-deferred (or tax-free in a Roth IRA). For example, all the rental income would go back into the IRA without current taxes, compounding over time. Some people even form an LLC owned by their IRA to manage the property (check with a custodian on setup). If you have a significant sum in a 401(k)/IRA, this route lets you invest in what you know (real estate) rather than just stocks or funds. Another retirement-related strategy is using a self-directed Solo 401(k) or even doing a 401k loan – investors who are self-employed can sometimes borrow from their 401k (up to $50K) to help fund the condo purchase, then pay themselves back with rental income. This essentially lets you “be your own bank” for the down payment. The key takeaway is that Monterey Bay Suites condos can be acquired using creative financing or tax strategies, but ensure you follow IRS rules closely and work with a knowledgeable custodian or intermediary. With a 1031 exchange, you can defer taxes on gains and possibly even upgrade from one condo to multiple units (leveraging into a small portfolio) or vice versa. With retirement funds, you could turn a portion of your 401k into a beach rental that generates income for your IRA – just remember no personal vacations in that scenario, since the IRS forbids personal benefit from IRA-owned assets.

Comparison with Other Myrtle Beach Investments

How does Monterey Bay Suites stack up against other resort condo investments in the Myrtle Beach area (including North Myrtle Beach)? Let’s compare a few key points: net income potential, appreciation, and overall investment appeal.

• Net Income & Cash Flow: In terms of rental yields, Monterey Bay’s numbers are in line with (and sometimes better than) similar aged oceanfront resorts. Many 1BR oceanfront condos along the Grand Strand gross in the $20K–$25K range annually and have comparable HOA costs, making net margins tight but attainable. For instance, the earlier example from Compass Cove (an older south-end resort) grossed ~$28.5K in 2023 for a 500 sq ft unit, not far off Monterey Bay’s gross for a slightly larger 1BR. Bay Watch (a North Myrtle Beach resort with extensive amenities) saw a 2BR do ~$34K, which actually suggests Monterey Bay’s top 1BRs (at ~$24K) are punching above their weight on a per-bedroom basis. In North Myrtle Beach, resorts like Avista or Ocean Bay Club (newer high-rises) have two and three-bedroom units that can gross $40K–$60K, but those units also cost $300K–$500K+ and have HOAs often $1,000+ per month. The return on cost often ends up comparable. Monterey Bay units, with prices typically in the $150K–$200K range for 1BRs, offer an accessible entry point. A savvy investor might even purchase multiple 1BR units with diversified views/floors to spread risk and still spend under what one larger condo elsewhere would cost. On pure cap rate, these condotels rarely exceed ~5–6% net, but if self-managed, Monterey Bay units can approach the higher end of that range due to savings on management fees. In contrast, a fully managed luxury condo might net closer to 3–4%. Investors seeking higher cash flow might consider going further north to Cherry Grove or south to Garden City where prices are lower, but rental demand is also lower. Monterey Bay hits a sweet spot: strong rental demand and a mid-tier price point.

• Appreciation & Market Trends: Historically, oceanfront condos in Myrtle Beach have had cycles of boom and bust. After the 2008 recession, condotel values plummeted and took over a decade to recover. However, the pandemic era saw a surprising real estate boom for secondary markets like Myrtle Beach. Monterey Bay units have appreciated significantly from 2020 to 2024. For example, a 1BR unit sold for just $95,000 in late 2020 (when tourism was uncertain); by late 2024, a comparable 1BR sold for $172,500. That’s an ~81% increase in four years, which outpaced even the broader hot housing market. This appreciation was driven by renewed confidence in short-term rentals and a flood of investors seeking income properties in drivable vacation destinations. Looking forward, such rapid appreciation is unlikely to continue at the same pace – in fact 2023–2024 saw prices level off or decline slightly from 2022 peaks in some cases. More inventory hit the market and interest rates rose, cooling demand. As of early 2025, Myrtle Beach condo inventory is up, and average days on market have risen. This gives buyers more negotiating power now than a year or two ago. Long-term, Myrtle Beach remains a high-demand vacation market, so one can expect steady appreciation in line with inflation and tourism growth, but not without some ups and downs. Monterey Bay’s 1990s construction means it’s not the newest, glitziest property – ultra-modern resorts might see higher jumps when the market is hot. But on the flip side, the low entry price and high rental yield of Monterey Bay can buffer against market corrections (investors are more likely to hang onto a unit that “pays for itself,” reducing panic selling). In essence, Monterey Bay has shifted from a pure cash-flow play to also providing solid appreciation in recent years, making it a more well-rounded investment.

• Investment Appeal & Differentiators: Investors should consider each resort’s unique features. Monterey Bay’s rooftop pool and family amenities make it stand out to guests – not many Myrtle Beach resorts offer a roof deck with ocean views. It positions itself as a family resort, which is the primary vacationer demographic in Myrtle Beach (this bodes well for sustaining rentals). Compared to some large-scale resorts, Monterey Bay is a bit smaller (about 194 units, if each floor has ~12 units), which can mean slightly less competition internally and potentially lower wear on facilities. Resorts like Dunes Village or Caribbean Resort are larger and have waterparks, which draw big crowds and rental premiums, but their HOAs and prices are higher too. North Myrtle Beach vs. Myrtle Beach: North Myrtle (e.g., Bay Watch, Avista) tends to attract more snowbirds and winter monthly renters, whereas central/north Myrtle Beach (where Monterey Bay is) might see fewer long winter stays but more short off-season visits. Both areas get the summer family surge. If anything, being in the City of Myrtle Beach, Monterey Bay benefits from city marketing efforts and events (marathons, festivals) that keep occupancy bumps happening year-round. Meanwhile, North Myrtle’s appeal is more residential/quiet – great in summer, but a bit more of a lull in the off-season aside from snowbirds. From an appreciation standpoint, North Myrtle Beach has had very strong growth too, especially for newer condos. An investor purely focused on upside in value might lean toward a newer development, but those often have negative carry (you feed them cash each month) unless you put a lot down. Monterey Bay can be closer to break-even or modestly profitable each year while you wait for the asset to appreciate, a compelling total return scenario.

In summary, Monterey Bay Suites Resort holds its own among Grand Strand condo investments. It offers a balanced profile: decent cash flow potential (especially if self-managed) and solid appreciation, all packaged in a unit that’s easy to rent to the area’s core tourist base. While it doesn’t have a massive on-site waterpark or convention center to drive rentals, it also doesn’t come with the massive price tag those properties command. It’s a mid-market, high-occupancy property – a workhorse in rental terms – and that reliability is attractive. As always, compare individual properties, but investors can feel confident that Monterey Bay’s performance metrics are aligned with the broader market and that it competes well versus similar condo-resorts in Myrtle and North Myrtle Beach on ROI.

Actionable Insights and Tips for Investors

For those considering investing in a Monterey Bay Suites condo, here are some key takeaways and strategies:

• 1. Run the Numbers Conservatively: Use realistic assumptions for occupancy and ADR. For instance, budget on, say, 50% annual occupancy at an average $150/night for an oceanfront 1BR – that would yield around $27,000 gross, which is in line with recent data. Then subtract HOA and other costs to see your net. If the deal only breaks even under those assumptions, make sure you’re comfortable with the non-monetary benefits (personal use, long-term appreciation). If it shows a solid profit, you’re in a good position. Don’t assume 100% summers alone will carry the property; factor in the off-season lull.

• 2. Decide Your Management Approach Early: If you want a true hands-off investment and plan to use the on-site management, understand the fee structure and maybe negotiate owner usage terms. Get historical statements if possible to see the income after their cuts. Conversely, if you plan to self-manage, start lining up the tools and team: a reliable cleaner (perhaps ask other owners for references), a digital lock system, good photos for your Airbnb listing, and maybe an aesthetic spruce-up to make your unit stand out online. The income difference can be huge, but so is the responsibility – know thyself as an investor/host. Some first-timers might start on the rental program for a year to learn the ropes, then switch to self-management once they’re comfortable.

• 3. Leverage Tax Benefits: As discussed, take advantage of the tax laws. Use 1031 exchanges when buying or selling to maximize your investment dollars (many investors “trade up” from one condo to two, then to a four-plex, etc., deferring tax each time). Also look into cost segregation studies and bonus depreciation if you qualify as a real estate professional or have significant passive income – you might accelerate depreciation on the furnished condo (appliances, furniture can be depreciated faster) to shelter some of that rental income from taxes in the early years. For high earners, this can make the difference in achieving a net positive return after tax. Always consult a CPA who understands short-term rental rules (there are unique loopholes that sometimes allow active STR investors to use losses against active income).

• 4. Keep an Eye on the HOA and Community: Attend owner meetings if possible (or read the minutes). A well-run HOA protects your investment by maintaining the property and avoiding deferred maintenance. Monterey Bay’s HOA includes a lot, which is good, but be attentive to any chatter about big projects or fee increases. Thus far fees have been fairly stable, but coastal buildings need periodic refresh. Factor potential future rises into your long-term plan (e.g., assume say 3% annual HOA increase in your projections). Also, get involved with the community of owners – some condo owners form unofficial groups (Facebook groups, etc.) where they share tips, collectively push for improvements, or even band together to negotiate things like bulk unit insurance discounts or cable upgrades.

• 5. Compare and Diversify: If this is your first foray into vacation rentals, compare Monterey Bay with a few other properties to ensure it’s the right fit. Maybe you prefer a condo with a one-bedroom and a half-bath, or a place closer to the Boardwalk action, or conversely something in a quieter North Myrtle spot. Each has trade-offs in cost vs rent. Monterey Bay is often cited as one of the better values for 1BR oceanfront condos in Myrtle Beach – that’s a strong point. If your budget allows, consider buying two smaller units instead of one larger one – for example, two 1BRs (maybe one oceanfront, one oceanview for balance) could let you occupy one for personal use and rent the other aggressively, or offset a slow month in one with income from the other. Diversification can smooth out your cash flow. That said, one well-managed unit can certainly perform well on its own.

• 6. Long-Term Exit Strategy: Have a game plan. Is this a pure investment to hold 5-10 years and sell? Or a pre-retirement play where you’ll enjoy it personally more down the line (maybe converting to a winter residence for yourself in 15 years)? If it’s the latter, you may prioritize paying off any loan and keeping the place in top shape. If it’s the former, you might focus on maximizing rental revenue and then timing the market for a sale (perhaps when a new wave of buyers enters, or after a property upgrade that increases value). Keep in mind the market cyclicality – ideally, sell into strength (like 2022’s peak) or be prepared to hold through dips collecting rental income.

Resort-style amenities like indoor and outdoor pools (above), a lazy river, and even a rooftop pool keep Monterey Bay Suites attractive to guests year-round. By leveraging these amenities in your marketing (highlight the unique rooftop sundeck or the kiddie pool for families), you can potentially charge a bit more or achieve higher occupancy than competing rentals without such features. Many renters choose a resort based on the pool deck almost as much as the room!

• 7. Align with Trusted Professionals: Lastly, work with a local real estate agent and lender experienced in condotels if you haven’t purchased one before. The agent can provide comp rental figures, guide you on which units have the best views (and returns), and assist in negotiations (for example, sometimes furnishings or future bookings can be included in the sale). A lender familiar with condotel loans (or a local credit union) will make the financing process smoother. And as always, consult your financial advisor or CPA regarding the tax and retirement account aspects – the strategies can be highly beneficial but must be done right to avoid pitfalls.

Conclusion

Monterey Bay Suites Resort offers investors an opportunity to own a slice of Myrtle Beach’s lucrative vacation rental market at a relatively approachable price point. The 2023–2024 data demonstrates that even a modest one-bedroom suite can generate solid rental income – especially if optimized – tapping into the Grand Strand’s enduring popularity. While HOA fees and management costs require careful planning, the potential to self-manage and maximize profits is a compelling angle for those willing to be hands-on. Meanwhile, the property’s family-friendly amenities and beachfront location ensure it remains in demand, supporting both steady cash flow and appreciation of the asset over time.

For first-time investors, a Monterey Bay condo can serve as a great entry into vacation rentals: it’s a turnkey, professionally managed environment, yet with room to add value through your own efforts if desired. For seasoned investors or professionals, it can be a savvy addition to a portfolio – a relatively low-maintenance, income-producing asset with tax advantages and personal getaway potential. Small business owners or self-employed individuals might find creative financing through self-directed retirement plans, effectively letting their vacationers contribute to their retirement nest egg. And those seeking passive income for retirement can lean on the on-site management to do the heavy lifting, enjoying modest returns today and perhaps more personal use later when work is done.

As with any investment, due diligence is key – but the numbers and analysis presented here should give you a strong starting point. Myrtle Beach’s vacation rental market is dynamic yet resilient, and Monterey Bay Suites Resort is well-positioned within it, offering a compelling mix of affordability, high occupancy, and flexibility for the investor. Whether your goal is a family legacy property that pays for itself or a stepping stone in your real estate investment journey, Monterey Bay deserves a close look. With the right strategy, your investment could be making waves in both your financial statements and your personal life (who wouldn’t want a reason to visit the beach more often?). Happy investing, and enjoy the ocean breeze along the way!

Sources:

• Myrtle Beach short-term rental market data (occupancy, ADR, revenue)

• Monterey Bay Suites actual rental incomes (MLS disclosed owner gross for 2023)

• Comparable resort condo incomes (Compass Cove, Bay Watch)

• HOA fee details and inclusions (Monterey Bay MLS info)

• IRS guidelines on 1031 exchanges for vacation properties

• Self-directed IRA rules for real estate (no personal benefit to owner)

• Market trends and Myrtle Beach tourism stats (BiggerPockets forum, local news)

• Sales history examples (Monterey Bay 2020 vs 2024 prices)

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.