Oceans One Resort Investment Analysis (Myrtle Beach, SC)

Overview of Oceans One Resort & Unit Types

Oceans One Resort is a modern oceanfront condominium tower in the heart of Myrtle Beach, known for its striking design and panoramic Atlantic views. The resort offers fully furnished units in a range of sizes – from studio/efficiency units to 1-bedroom, 2-bedroom, and 3-bedroom condos – all with private balconies overlooking the ocean. Opened in 2008, Oceans One boasts extensive amenities (indoor/outdoor pools, lazy river, hot tubs, splash pad, fitness center) and a prime location by the Boardwalk and Family Kingdom amusement park. Each condo is individually owned, making it a condo-hotel style investment where owners can rent out their unit for short-term vacations. In this analysis, we’ll examine 2023–2024 rental performance for each unit type, typical income and expenses, ROI under different financing scenarios, guest reviews, HOA rules, and how Oceans One compares to similar oceanfront resorts. Whether you’re a first-time investor or seasoned owner, the goal is to provide clear, data-driven insights to inform your investment decisions.

2023–2024 Rental Performance by Unit Type

Short-term rental demand at Oceans One remained strong through 2023 into 2024, thanks to its oceanfront location and amenities. Like most Myrtle Beach rentals, performance is highly seasonal – with summer months bringing in the bulk of income. Below is a breakdown of gross rental income, occupancy, and seasonal trends by unit type for recent full-year data:

• Studio/Efficiency Units (~550 sq ft): An oceanfront studio in Myrtle Beach can gross around $18,000 per year under average management. Oceans One efficiency units (often styled as a smaller 1-bedroom or “king studio”) typically see peak occupancy in June–August (often 80–90%+ booked) and very low occupancy in winter (as low as 20–30%). For example, an efficiency condo that sold for ~$102,000 produced about $18k in 12-month gross rent – implying strong summer rents but a quiet off-season. Average nightly rates range from as low as $60–$80 in winter (mid-week off-season nights) to $150–$200+ in peak summer. Many studios cater to couples on a budget, so keeping rates competitive in shoulder seasons helps boost occupancy. Overall annual occupancy tends to be ~50–60% for studios (roughly 180–220 nights booked), with the long summer season making up for slower winter months.

• 1-Bedroom Condos (~600–650 sq ft): One-bedroom units at Oceans One are popular with couples and small families. In 2023, a typical 1BR in the resort grossed around $28,000–$35,000 in rental revenue. For instance, one oceanfront 1BR condo (627 sq ft) generated $33,964 in 2023 gross rental income. Another similar 1BR in Myrtle Beach grossed about $27,500, while an upgraded 1BR reached $34,600. Occupancy for 1BRs averaged about 60% (roughly 220 nights/year), with near full occupancy in July and moderate bookings in spring and fall. Seasonal pattern: July is typically the top month (peak summer holidays), and many 1BRs run at 90%+ occupancy in summer weeks. In contrast, January and February can see occupancy dip below 30% with deeply discounted rates. Average daily rates (ADR) for 1BRs were around $120–$150 overall – but this average hides the range: summer weekend rates often $200+, off-season weekdays under $100. Savvy owners adjust pricing aggressively with the seasons. By catering to year-round demand (e.g. monthly snowbird rentals in winter, festival/event weekends in spring/fall), 1BR owners can smooth out some seasonality.

• 2-Bedroom Condos (~1000–1150 sq ft): Two-bedroom suites are the “sweet spot” for family vacation rentals. Oceans One 2BR units comfortably sleep 6–8 guests (often 1 king in the master, two full/queen beds in the second bedroom, plus a sleeper sofa). Gross rental income for 2BR units in 2023 ranged from the mid-$40,000s up to the $ Fifty-thousands. A representative sale: Unit 1704 (2BR/2BA, 17th floor) grossed $54,000 in 2023. Many Oceans One 2BRs appear to gross in the $50–$60k range under active management. One listing even projected up to $75,000 annually for a well-run 2BR unit, though that may be an optimistic scenario. Occupancy for 2BRs is slightly lower in shoulder seasons (families travel mostly summer and school break weeks), but high in summer – often booked solid from June through early August. Myrtle Beach’s long peak season (April–Aug) means 2BR occupancy stays healthy into spring and rebounds quickly by Easter. Seasonal ADR: In prime summer, a 2BR oceanfront condo can command $300–$500 per night (e.g. a July week can gross ~$3,000+). During winter, monthly snowbird rentals or short stays might equate to well under $100/night effective rates. Averaging it out, many 2BRs see around $180–$250 ADR overall. Using industry data: Myrtle Beach’s overall ADR across property sizes was about $248, but median ADR for typical condos was closer to ~$120 – indicating larger oceanfront units like 2BRs skew higher than the median. Takeaway: A solidly performing 2BR at Oceans One can gross ~$50k+ with ~55–65% annual occupancy, heavily concentrated in summer and with decent spring/fall holidays. Owners often offset the slow winter by targeting monthly renters (at reduced off-season rates) or doing renovations during the off months.

• 3-Bedroom Condos (~1300+ sq ft, or Lock-out Units): Oceans One offers a few 3BR/3BA configurations, including “lock-out” units – essentially a 2BR condo plus an adjoining 1BR suite that can be rented together or separately for flexibility. These larger condos cater to bigger families or groups (sleeping 8–10). In 2023, one remarkable 3-bedroom lock-out achieved $109,248 in gross rental income, one of the highest figures recorded in the MLS for Myrtle Beach condos. This likely represents an optimized operation: the unit can be rented as a full 3BR for premium rates or split into a 2BR and a 1BR to fill gaps, boosting occupancy and revenue. (The lock-out setup “can be rented separately” – effectively two rentals in one.) More typical 3BR condos (non-lockout) still performed strongly, albeit usually a bit less than the very highest 2BRs. For example, a 3BR at Oceans One sold recently around $500k, advertised as an “income-generating rental” but without public figures. It’s reasonable to estimate a well-run 3BR can gross on the order of $80k+ per year in this market, with peak summer weeks renting for $3,500 or more. However, 3BR occupancy can be slightly lower percentage-wise – large groups mainly come in summer and holidays, so offseason vacancy is common (families rarely need a 3BR in winter). Thus, the seasonality is extreme: Summer months can contribute well over half the annual revenue for a 3BR. Still, given the high nightly rates, the annual occupancy might only need to be ~50% to achieve $80k+ revenue. For lock-outs, owners maximize occupancy by renting portions separately in slow periods. In summary, 3BR units have the highest income potential (the ceiling being exemplified by the $109k case), but they also come with higher carrying costs (HOA fees, maintenance of a larger unit) and reliance on peak season.

Table: Oceans One Resort – 2023 Rental Performance by Unit Type

Sources: Actual MLS-reported incomes for sample units, local market stats, and observed rental rates.

As the table shows, gross rental income scales with unit size, but not always proportionally – larger units earn more in absolute terms but may have slightly lower occupancy on average. Summer is king for all unit types: Myrtle Beach’s tourism “wave” really builds from April (spring break) to a June–July peak when occupancy hits annual highs. According to Evolve’s market analysis, Myrtle Beach enjoys a long peak season with strong summer demand and even shoulder seasons bolstered by events and golfers. Even in the off-season, owners can attract monthly renters (often retirees or “snowbirds”), especially in pet-friendly resorts or those with heated pools and hot tubs. Oceans One’s indoor pools and proximity to downtown dining and theaters help continue to draw guests in cooler months, though at much lower volume. Overall, the data from Aug 2023–Jul 2024 show Myrtle Beach’s median occupancy around 62% for Airbnb listings – and Oceans One has performed in line with that, with summer nearly full and winter very slow, making strategic pricing and marketing essential to maximize annual yield.

Average Nightly Rates & Seasonality

Seasonal Pricing: The average nightly rate (ADR) at Oceans One varies dramatically by season. In Summer 2024, Myrtle Beach saw significantly higher prices – one report noted the on-the-books ADR was up ~9% to $423 for the summer high season (reflecting strong demand and inflation of rates). At Oceans One, a prime 2BR/2BA corner unit in July might rent for ~$400/night on weekends (plus taxes/fees), whereas that same unit in January might fetch only ~$100/night or sit vacant. Extremely low winter rates (sometimes <$80 for a 1BR condo) are often needed to attract any bookings in Dec–Feb. Conversely, holiday weekends and events (e.g. July 4th, Labor Day, spring bike weeks, etc.) allow owners to charge premium rates even outside of July/August. Smart investors use yield management tactics – adjusting prices in real-time based on demand. (In fact, many resort rental programs in Myrtle Beach explicitly use “yield management techniques to maximize revenue based on demand”.) The goal is to maximize high-season rates while encouraging longer stays or any occupancy in the off-season with discounts.

Occupancy Trends: Oceans One follows Myrtle Beach’s extreme seasonality – “soaring” occupancy in summer 2024 followed by a steep plunge in winter. This pattern is normal: families flock when school’s out, then from November through February the beach traffic is mostly weekend warriors and monthly snowbirds. Still, Myrtle Beach manages to attract visitors year-round thanks to golf, shows, mild winter weather, and holiday events. As a result, year-round occupancy can remain above 50% (many owners were booked ~180–200 nights last year). The occupancy rate distribution shows most hosts achieve between 50–70% occupancy annually. At Oceans One, units that are actively rented on platforms like Airbnb usually have occupancy in the 55–70% range, whereas owners who rely solely on on-site hotel rental management might see lower occupancy (but potentially higher nightly rates during peak weeks). The peak occupancy is typically in July (the busiest month), where one can realistically expect ~90%+ occupancy for the month if priced appropriately. Off-peak occupancy can drop below 20% in January for a unit with no monthly renter (many nights empty). To combat that, some owners offer their condos for monthly winter rentals (at heavily reduced rates like $1200–$1500/month including utilities) – effectively trading high nightly rates for guaranteed occupancy for a few months. This can lift winter occupancy to 100% (though at low revenue). Each investor must balance the strategy: chase higher short-term rates year-round (and accept more vacancy) versus fill units in winter at low cost for steady cashflow.

Key insight: The combination of relatively high ADR and moderate occupancy yields solid revenue for Oceans One investors. Myrtle Beach’s average ADR of ~$132 (for entire home rentals) in 2024 is lower than what Oceans One oceanfront units typically achieve (due to their superior location and views). Meanwhile, occupancy ~60% is considered good for a vacation rental market. Thus, Oceans One owners enjoy one of the better-performing segments of the Myrtle Beach market, leveraging oceanfront demand to overcome the seasonal lull.

Operating Expenses and HOA Fees

One must weigh the high rental income against operating costs. Oceans One is a high-rise condo and has substantial HOA dues, which cover a lot of expenses for owners. Here’s a breakdown of typical costs and fees:

• HOA Fees: The homeowners association fee at Oceans One is comprehensive and high. Depending on unit size, HOA dues range roughly from $750/month for a studio up to $2,200/month for a 3BR. For example, a 2BR unit had an HOA fee of about $1,372 per month, while a larger 2BR (~1115 sq ft) was around $1,719/month. A 3BR lockout (Unit 1002) was noted with HOA around $2,278/month. These fees are not cheap, but they include virtually all operating utilities and services: building insurance (hazard, flood), HO6 interior insurance for owners is often included or partly covered, all electricity (in-unit and common), water/sewer, cable TV, internet/WiFi, phone, trash pickup, pest control, common area maintenance, pool maintenance, security, and onsite management. In short, the HOA is “all-inclusive,” as some listings advertise. What’s not included? Property taxes and contents insurance are the main items outside HOA. But having utilities included means owners (or their guests) don’t pay separate electric or internet bills – a big perk for hassle-free management. Still, at $1k–$2k per month, HOA dues significantly eat into rental income. An investor must account for this fixed cost when calculating net returns.

• Property Tax: Rental condos in South Carolina are taxed at the non-owner-occupied rate (6% assessment ratio of market value). For an Oceans One condo, annual property taxes typically run about 1–1.5% of market value. For example, a unit assessed ~$400,000 had a yearly tax around $6,300. A smaller $250,000 unit might pay around $3,000–$3,500 in taxes. Horry County offers discounts if the condo is your primary residence, but for most investors this won’t apply (since these are rentals). So, expect a few hundred dollars per month equivalent in property taxes.

• Insurance: The master HOA policy covers the structure and exterior. Owners usually just need an HO-6 condo insurance for contents and liability, which might be ~$500–$800/year (depending on coverage). Given HOA includes interior electricity and maintenance of common areas, insurance is relatively straightforward (cover personal furniture, any upgrades, and liability). Some owners also opt for home warranty or appliance insurance if not already covered.

• Management and Cleaning: If you self-manage via Airbnb/VRBO, you won’t have traditional property management fees, but you will have costs like cleaning and platform charges. Cleanings are typically paid by the guest as a separate fee, but an owner must arrange and pay the cleaners regardless. A typical turnover cleaning for a 2BR might cost ~$120 (guests pay this as part of booking). Property management companies, if used, charge around 20–30% of gross rents in Myrtle Beach. For example, on-site rental programs or third-party managers (like local realty companies) may take ~30-40% but handle everything (booking, guest services, maintenance). Self-managing can save this commission (see the section on self-management tips below), but either way allocate some budget for maintenance and incidentals. We’ll assume for ROI calculations that cleaning fees are passed to guests and thus roughly break even, and we’ll include a management fee only in scenarios where a manager is used.

• Maintenance/Repairs: Routine maintenance is crucial in a salt-air environment. Expect to replace HVAC every ~10-12 years and appliances perhaps every 5-8 years as needed. Allocating ~5% of gross rent to maintenance reserves is wise. In 2023, some Oceans One listings highlighted new AC units or new appliances as selling points – indicating owners are reinvesting to keep units in top shape (and to maintain good reviews). Also, furnishings and decor need periodic refresh (a fresh coat of paint, new sofa or mattresses every few years) to stay competitive; these are one-time upgrade costs but worth noting. The HOA will handle external upkeep, but interior upkeep is on the owner.

• Financing Costs: While not an operating expense per se, any investor using a mortgage must factor the debt service. We’ll explore financing under ROI, but note that interest rates for second-home or investment condos have been around 6–8% recently, and some condo-tels require higher down payments or portfolio loans (with higher rates). Always confirm loan terms for a condotel property – financing can be a challenge and an added cost (though it also magnifies returns when leveraged wisely).

In summary, Oceans One’s fixed costs (HOA + taxes) are relatively high – a 2BR might incur ~$18K HOA + $5K tax = $23K/year before any other expense. This emphasizes the importance of the robust rental income to still net a profit.

ROI and Cap Rate Projections (With & Without Financing)

From an investor’s standpoint, we should analyze net operating income (NOI) and resulting cap rates, as well as potential cash-on-cash return if financing is used.

Net Operating Income (NOI): This is gross rental income minus operating expenses (HOA, taxes, insurance, maintenance, management). Let’s do a sample pro forma for two scenarios – one self-managed 2BR and one using a property manager – to illustrate ROI:

• Example 1: 2BR Condo, Self-Managed – Assume purchase price $400,000 (a mid/high-floor 2BR). Gross rentals ~$50,000/year (as evidenced by actual 2023 gross of $54K on one unit). Expenses: HOA ~$18,000/year, property tax ~$6,000, insurance $600, maintenance $2,500 (5% gross). We’ll assume the owner self-manages via Airbnb/VRBO, so no management commission (though platform fees ~3% are negligible or built into gross). NOI calculation: $50,000 – $18,000 – $6,000 – $600 – $2,500 = $22,900. Rounded, about $23K net income. On a $400K investment, that’s a cap rate of ~5.7%. If the unit performs a bit better (say $55K gross), cap might approach ~6.5%. If slightly worse (or more maintenance), maybe ~5%. This range (~5–6% cap) is in line with many above-average oceanfront condos in Myrtle Beach – it’s better than the cap rate on many coastal properties (some only net 3–4%), but not as high as long-term rentals in cheaper inland markets might yield. It does, however, come with potential appreciation and personal use benefits (more on that later).

• Example 2: 2BR Condo, Managed (20% commission) – Using the same unit but hiring a rental management company (common for hands-off investors). Gross $50,000, but now subtract ~20% ($10,000) for management. Expenses: HOA $18K, tax $6K, ins $600, maintenance $2.5K (the manager may handle small repairs but you still pay for them). NOI: $50,000 – $10,000 (mgmt) – $18,000 – $6,000 – $600 – $2,500 = $12,900. That yields a cap rate of ~3.2% on $400K. If management took 30%, NOI would drop further to barely $7–8K (cap <2%). Clearly, management fees significantly reduce the cap rate. This illustrates why many investors choose to self-manage in Myrtle Beach’s STR market – keeping that additional 20-30% gross in their pocket can double their net income. It’s worth noting that even a ~3% cap might still make sense for some if they expect strong appreciation or are using the condo as a hybrid personal vacation home (offsetting their expense with rentals).

Now, consider financing. Suppose you finance 75% of the purchase (typical for an investment loan) at a 7% interest rate (30-year fixed). On $400K, 75% is $300K loan. The annual debt service (mortgage payments) would be about $24,000/year (roughly $2,000/month). Using Example 1’s self-managed NOI of $23K, you’d basically break even on a cashflow basis (slight negative after mortgage, since $23K NOI – $24K debt ≈ –$1K). However, you would be paying down principal on that mortgage (about $5K in the first year out of the $24K, growing each year), which is building equity. So your cash flow is roughly zero, but your equity gain is ~$5K (principal) plus any market appreciation. Your cash-on-cash return in that scenario: You put $100K down (25%) plus maybe ~$10K closing costs = $110K cash invested. You end Year 1 with about -$1K cashflow and $5K principal paid = net +$4K equity. That’s about a 3.6% return on cash (4K/110K), plus any appreciation (if the condo rose say 3% in value = +$12K, that’s another ~11% on cash). So leveraged, your returns rely heavily on appreciation and loan paydown, with minimal immediate cash profit if self-managed in this scenario.

If instead using a manager (NOI $13K) with the same mortgage ($24K/year), you’d be deeply negative cashflow (~-$11K/year). That would not be sustainable without additional cash injections, so an investor going the fully managed route typically needs either a larger down payment (to reduce the loan size or get a better rate) or aims for a unit with unusually high income (e.g. a 3BR lockout with $100K gross could make the numbers work even with management). For instance, $100K gross at 30% expense = $70K net, minus $18K HOA, $8K tax, etc ~ $44K NOI – that would cover debt and leave cashflow.

ROI Summary: If bought all-cash, expect cap rates roughly in the 5–6% range if self-managed (and ~3–4% if manager-hired) for Oceans One units at prevailing prices and performance. These cap rates are decent for beachfront property – as a comparison, many other beach condos might only net 2–5% cap. With financing, a 25% down investor might see minimal cashflow but can achieve a modest cash-on-cash ROI ~4–6% if self-managed, coming mostly from principal paydown and some tax advantages (e.g. depreciation). If the investor treats it as a second home (often 10% down loans at lower interest are possible if you claim some personal use), the mortgage cost might be lower, but then you must use it personally some portion. Either way, leveraging increases your potential ROI on equity if the property appreciates: historically Myrtle Beach oceanfronts have had slow appreciation, but there’s upside as the area grows (MB was the fastest-growing city in the U.S. in 2021-2022). So an investor might accept near-breakeven cashflow for the trade-off of owning a appreciating asset largely paid for by renters.

Of course, individual results vary – an exceptional host might exceed the average gross by getting more bookings (e.g. aggressive marketing to reach ~$60K on a 2BR where others get $50K), thereby boosting cap rate closer to 7–8%. Conversely, if you under-utilize the unit or have a lot of downtime, the ROI could falter. Bottom line: Oceans One can offer a respectable return relative to coastal real estate norms, especially if you self-manage to keep expenses in check. Use cap rate to compare across properties (for pure investment mindset) and consider cashflow if financing (to ensure you can cover the mortgage during off-season).

Guest Reviews and Ratings (Airbnb/VRBO/Booking.com)

Guest satisfaction at Oceans One Resort has been somewhat polarized, which is common for condo-hotel properties where unit quality varies by owner. Overall, guests love the location and views but sometimes criticize maintenance or service issues. Let’s break down reviews by platform:

• Airbnb & VRBO: Individual condo listings on platforms tend to have high ratings when the owner/host is attentive. For example, one 2BR Airbnb listing “Paradise Breathtaking Oceanfront” at Oceans One has a 4.76 out of 5 stars rating across 50+ reviews. Guests of that unit praised its cleanliness, modern updates, and the host’s responsiveness – demonstrating that a well-kept unit can achieve ~4.7–4.8 average (which is excellent by Airbnb standards). Another Oceans One condo on Airbnb (unit 404) shows it’s in demand (advertised at a low off-season rate of $63 for a night in April) – presumably to boost occupancy – and likely gets good reviews for value. On VRBO, many units have dozens of positive reviews, often highlighting the “spectacular oceanfront views” and convenient walkable location. Because Airbnb/VRBO reviews reflect specific units and hosts, the key takeaway is that an updated, well-managed unit at Oceans One can easily maintain 4.5-5.0 star ratings. Many guests don’t even realize negative reviews of the resort might exist elsewhere; they focus on their unit’s experience. As an owner, this means controlling what you can: ensure cleanliness, keep decor and appliances updated, and communicate proactively with guests. Doing so tends to yield 5-star reviews and repeat bookings, regardless of any building-wide quirks.

• Booking.com / Hotel Reviews: Oceans One is also listed on Booking.com and similar sites as a hotel (often via the on-site management). On those sites, the resort has a more mixed reputation. Over ~1,700 reviews on Booking.com give Oceans One an average score around 7.1 to 7.2 out of 10 (“Good”). Common sub-scores: Location: 9+ (excellent); View: 9+; but Cleanliness and Facilities: ~6-7/10. Many travelers note that units show “wear and tear” and housekeeping is inconsistent. For example, recent reviews mention maintenance issues like non-working outlets or fixtures, and dated furnishings. One guest said “the condo showed wear and tear like other reviews had commented… initially our ice machine and jacuzzi tub weren’t working but maintenance fixed it”, giving a sense that while issues arise, there is some service response. TripAdvisor tells a similar story: Oceans One has an overall 4 out of 5 rating on TripAdvisor with 1700+ reviews, but you can find threads with titles like “Is this normal y’all?” where a guest had a “horrible stay” due to multiple maintenance failures. Conversely, many others post “Loved the view…we will come back” even if they note minor issues. Yelp (which has ~100 reviews) rates it around 3 out of 5, with people noting “pictures don’t match current condition…rooms need updating” but also acknowledging it’s “not a bad place to stay” overall.

Why the disparity? It boils down to unit condition and management. Oceans One units are individually owned, and not all owners renovate on the same schedule. Some rent through the on-site front desk (which might have slower housekeeping turnover), while others through dedicated cleaners. This leads to inconsistent guest experiences – hence the mediocre aggregated scores on hotel sites. However, an investor can outperform these averages by making sure their unit is one of the good ones. Indeed, the fact that some investors continue to make $30K+ even with bad resort reviews shows that rental income can be strong despite mixed ratings. One investor-agent quipped that smart investors “ignore bad reviews (and still make $30K+)” – focusing on the numbers rather than a few negative comments. Essentially, guests book for the oceanfront views and location; as long as your condo is clean, accurately depicted, and issues are promptly fixed, they will leave happy. Modernizing the décor and doing preventative maintenance can turn potential 3-star feedback into 5-star raves.

Owner tip: If you do encounter a bad review, address it head-on and fix the problem. Continual improvement (new flooring, replacing that balky faucet, repainting scuffs) will reflect in future reviews. Remember, renters “vote with their dollars,” and if rentals stay strong it means guests keep coming back year after year. Many Oceans One guests are repeat visitors; some reviews even note “we plan on coming back, we want the same view”. By cultivating good reviews on Airbnb/VRBO, you’ll bolster your occupancy and can perhaps even charge a bit more compared to poorly reviewed units in the same building.

In summary, guest reviews for Oceans One trend positive when the unit is well-maintained: expect ~4.5+ stars on peer-to-peer platforms if you do things right. The overall resort’s reputation is “good not great” (around 7/10 or 3.5/5) due to variation in quality. An investor should aim for their unit to be one of the standouts that effectively “float” above the average – this will maximize rental success.

HOA Rules, Rental Regulations, and Owner Restrictions

Investing in a condo-hotel means navigating HOA rules and city regulations for short-term rentals. The good news is Myrtle Beach is very friendly to short-term rentals, and Oceans One’s HOA is set up to encourage them.

HOA Rental Policy: Short-term rentals are allowed without special approval – in fact most owners use their units as vacation rentals. The HOA rules at Oceans One do not force you to use the on-site rental management; owners are free to self-manage or hire any third-party manager (several listings confirm “Short Term Rental Allowed” and no restrictions on choosing management). There is an on-site front desk (often managed by a hospitality company) that some owners opt into for convenience, but it’s not mandatory. Long-term rentals (leases over 6 months) are also allowed, though rarely utilized since vacation rentals yield higher income. So as an investor, you have flexibility: list on Airbnb, use a local agency, or join the hotel rental program – whatever suits your strategy.

Guest Restrictions: The HOA and management enforce common-sense rules to maintain the property. No house parties or underage renters – rentals are limited to “families and responsible adults only”. Typically the minimum age for the primary renter is 21 or 25 (the on-site program likely requires 25+). This helps prevent spring-break chaos and protects your unit. Pet Policy: Oceans One does not allow guests to bring pets (it’s not a pet-friendly resort for renters). However, owners are allowed pets (with some restrictions such as size/number). So if you personally have a dog, you can enjoy your condo with Fido, but your Airbnb guests cannot bring theirs. This is fairly common in MB condos – it strikes a balance so that the building isn’t full of visitor pets, but owners retain that privilege.

HOA Governance: The HOA handles building maintenance and has rules all owners must follow (e.g. regarding renovations, noise, balcony usage, etc.). As an investor, it’s wise to be active or at least informed in the HOA meetings to stay ahead of any changes (like potential special assessments for major repairs, etc.). Currently, no major red flags are noted – but always check if there are pending litigation or assessments (as any seasoned agent will advise). These can affect insurance or financing. Oceans One is a relatively newer building (opened 2008), and by 2023 it had some updates but also some wear – investors should budget for any HOA-led refurbishment (painting, elevators, etc.) that could come up in the future.

City Regulations: Myrtle Beach city has lenient short-term rental rules as of 2024 – Airbtics notes the local government isn’t strictly enforcing any harsh STR regulations and licensing is straightforward. There may be a nominal business license or permit needed, but many Airbnb hosts operate with minimal hassle. The zoning at Oceans One (inside city limits, oceanfront tourist district) explicitly allows vacation rentals. So unlike some cities, there’s no cap on rental nights or exclusion zones here. This investor-friendly environment could always change, but MB’s economy is heavily tied to tourism, so the city tends to support STR owners.

Rental Program Options: Owners can join the on-site Brittain Resorts rental program (Brittain manages several MB resorts including Bay View, Atlantica, etc.). If you do, they handle bookings (often through Expedia/Booking.com etc.) and daily housekeeping – but again, they will take a hefty cut and possibly charge for unit upkeep. Some owners prefer independent vacation rental management firms or doing it themselves with a local cleaner. Oceans One’s HOA does not force any particular program, which is a positive for investors who want control.

Other Owner Restrictions: Aside from the pet rule and renter age policy, there aren’t unusual restrictions. You can use your condo for personal stays whenever you like (just block it from rentals). There’s no limit like “owner can only stay X days” – you have full rights as a homeowner to occupy it. Some HOAs prohibit things like balcony decor or require uniform door locks if in rental program, etc., but those are minor. Check the condo docs for any updates, but overall Oceans One is a very investor-friendly property with flexible rental options and standard resort rules to ensure everyone’s safety and enjoyment.

Investment Strategies and Tips

Investing in a vacation rental condo can be approached in creative ways. Here are strategies relevant to Oceans One investors – from tax-deferred exchanges to leveraging retirement funds and self-management.

Using a 1031 Exchange

If you’re selling another investment property, a 1031 exchange is a powerful tool to defer capital gains tax by reinvesting proceeds into a “like-kind” property – in this case, your Oceans One condo. For example, if you have a rental home or another condo that appreciated, you can sell it and roll the gain into the Oceans One purchase, paying no tax now (tax is deferred until you sell the new property in the future). Many beach investors use 1031s to upgrade their portfolio. The key rules: you must identify the replacement property within 45 days of selling the old, and close within 180 days. Also, to defer all gains, the purchase price of the new property should be equal or greater than the sale price of the old, and you should reinvest all the cash proceeds. If your Oceans One condo is less, you can still do a partial 1031 (you’d pay tax on the leftover boot). Work with a qualified intermediary to handle the exchange funds – you cannot take possession of the cash in between. In practice, say you sell a $300K condo in another state and want to buy a $400K 2BR at Oceans One. You identify it as the 1031 replacement, close on it using the sale proceeds, and boom – no immediate capital gains tax on your previous sale. This can save you tens of thousands in taxes, essentially giving you more capital to invest. One caveat: after a 1031, if you plan to also use the condo personally, be mindful of IRS safe harbor guidelines (they expect it to be rented at least 14 days and your personal use not exceed 14 days in first two 12-month periods, to qualify as investment). Most likely, if your primary intent is investment, you’re fine. Upshot: A 1031 exchange can supercharge your ROI by letting you reallocate equity tax-free into a high-yield property like Oceans One. Many seasoned investors hop from one property to another via 1031s, steadily growing their portfolio without the drag of taxes.

401(k)/IRA-Funded Investing

Believe it or not, you can tap into retirement funds to invest in real estate before retirement – either by using a self-directed IRA (SDIRA) or a 401(k) loan. There are several myths around this that have been debunked. Here’s how it works in practice:

• Self-Directed IRA: You can roll over existing 401(k) or IRA funds into a self-directed IRA that allows real estate investments. An SDIRA gives you checkbook control to buy property. Using this, your IRA would own the Oceans One condo (the deed is in the name of your IRA LLC). All rental income goes back into the IRA, and all expenses must be paid from the IRA. The advantage is you’re using pre-tax (or Roth) dollars to invest – potentially a huge pool of capital that might otherwise sit in stocks and bonds. The downside is you personally can’t use the condo (no personal use when owned by an IRA, or it jeopardizes the IRA’s tax status). Also, any financing must be non-recourse (banks typically require 30-40% down for IRA loans). Still, this strategy lets you diversify retirement holdings into a tangible asset with appreciation, cash flow, etc., tax-deferred or tax-free (if Roth). Many myths (e.g. “you can’t use 401k for real estate”) are false – you can, with proper structuring.

• 401(k) Loan: If you have a workplace 401(k), most plans allow you to borrow up to 50% of your balance (max $50K) and repay it over up to 5 years (longer if for a primary home). This loan is not taxable as long as you repay it, and you pay yourself back with interest (so you’re paying interest to your own account). Investors use this as a way to fund down payments. For instance, if you need $80K down for an Oceans One unit, you could borrow $50K from your 401k, and combine with $30K savings. You then pay ~$900/month back into your 401k for 5 years, and that effectively finances part of your condo purchase. The beauty is that the interest (often prime +1%) goes to your own retirement account. Just be confident in your job stability – if you leave your job, the loan may come due or become taxable if not repaid. But it’s a great way to unlock retirement savings now to buy a cash-generating asset.

Why consider these strategies? As one real estate broker put it, you don’t want to reach retirement and realize you could have grown your 401k more by investing earlier in assets like beachfront condos. A 401k is a savings plan, not a magic growth plan – so taking control via real estate can yield better returns and also personal enjoyment. If done correctly (with CPA guidance), you can avoid penalties or taxes when moving money to an SDIRA or using a loan. Custodians handle the SDIRA paperwork, and property managers (or your own management) handle operations, so it’s quite feasible. You can even combine strategies: e.g. use a 401k loan for part of down payment and do a 1031 for the rest.

Important: Always consult with a financial advisor or CPA who understands real estate IRAs to ensure compliance (no self-dealing, etc.). But don’t let myths scare you – many investors successfully use retirement funds to buy rentals, enjoying tax-advantaged growth. Imagine your IRA growing not just by stocks, but by beach vacationers paying rent – a nice diversification!

Self-Management vs. Professional Management

Choosing to self-manage your Oceans One condo (as an Airbnb host) or hand it off to a property manager is a critical decision. Each approach has pros and cons:

Self-Management Tips: Managing it yourself can significantly improve your profit margin, as demonstrated earlier. However, it requires commitment. Here’s how to succeed at it:

• Treat it like a business from day one. One investor wrote that instead of “dipping your toes,” jump in and “bet on yourself” by self-managing – you’ll learn faster and retain more income. Embrace that you’re now running a small hospitality business.

• Get the right tools: Use channel management software or at least sync calendars on Airbnb and VRBO to avoid double-booking. Utilize dynamic pricing tools (like PriceLabs or Airbnb’s Smart Pricing) to adjust rates for supply and demand. Many self-managers in Myrtle Beach use automation for messaging guests, lock codes, etc. “Laying the right foundation” with these tools will save you time and prevent mistakes.

• Build a reliable local team: Since you may not be on-site, have a trusted cleaner who also does a visual check for damage after each guest. Have a handyman or maintenance contact for quick fixes (a loose faucet, AC issue, etc.). Prompt response to issues is key to good reviews. If you live nearby, great – if not, you might hire a local co-host for a small fee to assist as needed. However, as the article title “Fear vs Faith” implies – don’t be afraid to self-manage; many remote owners do it successfully with the right team and systems.

• Marketing and Listing: Take professional photos of your unit with bright lighting and ocean views showcased. Write a compelling description (emphasize that “breathtaking sunrise view from the balcony,” “steps from popular attractions,” etc.). Promptly answer inquiries – faster responses get more bookings. Enable instant book if you’re comfortable; it can boost your occupancy. Also, consider listing on multiple platforms (Airbnb, VRBO, Booking.com via a channel manager, etc.) to widen your reach. Some owners even create a direct booking website or Facebook page to capture repeat guests.

• Pricing Strategy: Don’t just set one rate year-round. Use seasonal pricing and minimum stay rules to optimize bookings. For example, in peak summer require 3-7 night stays (to reduce turnover and capture full-week vacationers) and price at the high end of market since demand is there. In winter, allow 2-night stays or offer steep discounts for weekly/monthly. Always keep an eye on local event calendars – raise rates when there’s a big event in town (Marathon weekend, car shows, etc.). As you get bookings, adjust pricing on remaining open dates to maximize occupancy (this is where dynamic pricing tools help tremendously).

• Customer Service: As a self-manager, you’ll field guest communications. Aim to provide hospitality-level service: clear check-in instructions (Oceans One has keyless locks or lockboxes for many units – install a smart lock for convenience), a welcome book with local recommendations, and be responsive if a guest has an issue. Quick problem-solving (sending maintenance, etc.) can save a potentially bad review. Encourage happy guests to rebook next year (perhaps offer them a direct booking discount). Essentially, self-managing forces you to learn the nuts and bolts of STR operations, but this knowledge is power – you’ll quickly see what improvements increase guest satisfaction and you’ll take full responsibility for your business’s success.

Many investors find that after an initial learning curve, self-managing one condo is very feasible and takes only a few hours a week. The savings (20-30% of gross rents not paid to a manager) are substantial – often $10,000+ more in your pocket annually, which is likely worth your time. Plus, you maintain control: you can personally ensure cleaning quality, set pet or no-pet (here no pet), and adjust to market changes swiftly.

Hiring a Property Manager: On the other hand, if you live far away or prefer truly passive income, you might hire a professional manager. Companies like Vacasa, local Realtors, or the on-site program can handle bookings, guest communication, and maintenance. This reduces your day-to-day involvement to near zero, at the cost of that commission. If you value your time or have multiple properties, this might be attractive. Some tips if hiring a manager:

• Negotiate rates: If one company is quoting 30%, see if you can find a 20% option, or negotiate a tier (e.g. 25% but they cover minor maintenance under $X). Every percent matters.

• Check their marketing reach: A good manager will list on all major OTAs (Online Travel Agencies), have their own marketing, and maybe integrate with packages (golf packages, etc.). Brittain Resorts (if you go on-site) will market through their established channels which can yield bookings you might not get on your own. Ensure whichever manager you pick has a track record of high occupancy at competitive rates – ask for performance on similar units.

• Owner use and transparency: Make sure you can still block out dates for personal use easily and that you get detailed statements. Some resort rental programs charge additional fees (for cleaning, maintenance, credit card fees, etc.) on top of commission – understand the full effective cost.

Ultimately, many first-time investors start self-managing to maximize profit and learn the ropes. Some later hand off to managers once they scale up or if life gets busy, but at least they know what returns should look like. Conversely, some start with a manager for convenience and later decide to take over management after seeing income could be higher. There’s no wrong choice, but financially, as shown, self-management usually wins. As one expert noted, betting on yourself can light a fire under you to grow and succeed, whereas handing it off keeps you a bit more “hands-off” and possibly “stuck” with whatever the manager gives you.

For Oceans One, given its strong Airbnb potential, self-management is a popular route. But if you’re out-of-state and want no fuss, budget accordingly for a manager and enjoy the beach views when you visit your condo.

Comparable Oceanfront Resorts Analysis

How does Oceans One stack up against other Myrtle Beach oceanfront condo investments? Let’s compare it to a few similar resorts: Bay View Resort, Atlantica, and Ocean Park Resort – all of which are in the same general market of oceanfront STR condos.

• Bay View Resort (504 N Ocean Blvd): Bay View is another modern high-rise on the Boardwalk (just a few blocks north of Oceans One). It offers 1-4 BR condos and is known for its Starbucks and indoor pools. Rental performance: Bay View is considered a “highly desired resort…boasting great rental income”. In fact, one recently marketed 2BR unit at Bay View grossed about $60,152 in rental income in a year (according to a promotional video). This is in the same ballpark as Oceans One’s 2BR figures. Prices at Bay View are somewhat similar or slightly lower; a 2BR might be $300-$350K. HOA fees are also high (covering similar inclusions). Bay View’s on-site management (Brittain Resorts) is aggressive in marketing, so their top units perform well. Reviews: Bay View has comparable reviews, maybe slightly lower (some units are aging). Overall: Oceans One and Bay View are direct competitors for renters – both are centrally located family-friendly oceanfronts. Investors often consider both. Bay View’s advantage is being right on the busy part of Boardwalk; Oceans One’s advantage is newer design and arguably nicer units on average. From an investment view, both can achieve ~$50-60k for 2BRs. Oceans One might have an edge for those who self-manage on Airbnb due to slightly more condo-like vibe, whereas Bay View’s clientele often book through the hotel program.

• Atlantica Resort (1700 N Ocean Blvd area): The Atlantica consists of two older oceanfront towers (phase I and II) closer to downtown Myrtle (slightly north of the Boardwalk). It features 1BR and 2BR condos. Rental performance: Being an older resort (1990s built), prices are lower – you might acquire a 1BR for $150K-$200K, 2BR ~$250K. Gross rents correspondingly might be lower: perhaps $20-25K for a 1BR, $30-45K for a 2BR depending on updates. One listing noted an Atlantica 2BR was a “well taken care of unit with great rental income” – but “great” in this context likely means relative to price (e.g. $25K on a $150K unit is actually a strong cap rate). Atlantica’s occupancy is buoyed by its location near the Boardwalk and the fact guests can use amenities of both buildings. However, some Atlantica units are heavily dated. HOA fees are a bit lower than Oceans One (since building is older, smaller units). Reviews: Atlantica’s reviews are mixed; many cite that it needs renovation, though location is loved. As an investment, Atlantica might yield a higher % return on a smaller investment, but absolute income is less. Oceans One’s condos, being newer and more luxurious, attract higher nightly rates and likely higher-end clientele. Overall: If comparing a $200K Atlantica vs $400K Oceans One, the Oceans One will earn more and possibly appreciate more, but Atlantica could be a lower-cost entry with decent cash-on-cash (especially if self-managed and renovated). Some investors use Atlantica for value play, but Oceans One is considered more upscale.

• Ocean Park Resort (1905 S Ocean Blvd): Ocean Park is further south in MB, about 1.5 miles from Oceans One. It’s a mid-range oceanfront resort notable for being pet-friendly for guests (one of the few that allow renters’ dogs). It has mostly 1BR and 2BR units. Rental performance: Ocean Park’s pet-friendly policy gives it an edge in attracting snowbirds and offseason guests with pets. However, its location is a bit removed from downtown attractions (still a short drive). Gross rentals might be a bit lower than Oceans One – perhaps 1BRs $20K-ish, 2BRs $30-40K. Units there cost a bit less (you might find a 1BR ~$170K). The HOA includes a lot as well. Unique factor: Because Ocean Park allows one dog under 40 lbs for renters (with a fee), it stays on the radar of pet owners. An Oceans One owner will be competing for guests purely on unit quality and price, whereas an Ocean Park owner might capture the niche “bringing my dog” market and possibly secure longer winter stays (retirees with pets). Reviews: Generally decent; pet-friendly also means some wear and tear. Overall: Ocean Park can be a solid investment if you specifically want to cater to pet-friendly rentals. It might not gross as much at peak (families with no pets often prefer newer resorts like O1 or Bay View), but it has a loyal segment. Oceans One likely outperforms Ocean Park in high-season revenue, but Ocean Park might surprisingly do OK in winter due to pet snowbirds.

In addition to the above, other competitors include Camelot by the Sea, The Caribbean Resort, Dunes Village, etc., but those either target slightly different segments or are farther north. In the immediate downtown area, Oceans One and Bay View are the stars for modern condos, with Atlantica a tier below.

One investor analysis noted finding a specific unit at Oceans One that out-earned even some 3BRs at other resorts. The takeaway is that Oceans One’s design (all units face the ocean, many have floor-to-ceiling glass, etc.) makes its units inherently desirable to renters. When comparing cap rates: Bay View and Oceans One are similar; Atlantica might have higher cap % due to low price, but more volatility; Ocean Park moderate with a niche. If you value a newer building and strong amenities, Oceans One holds its own. Location-wise, Oceans One is walking distance to the new boardwalk extension, Second Ave Pier, and downtown – a big plus over, say, Ocean Park which requires driving to most attractions. Many guests specifically want to be near the SkyWheel/Boardwalk area, which gives Oceans One (and Bay View/Atlantica) a premium.

In summary, Oceans One is among the top oceanfront condos in Myrtle Beach for STR performance. A 2024 ranking by a local agent of “rental income hotspots” highlighted Oceans One as a standout, with certain units making exceptional income compared to similarly priced condos. While other resorts can be good investments too, Oceans One offers a sweet spot of luxury and location that commands high rents. Just be mindful that it comes with higher HOA dues than some older properties – but as long as those translate into higher rental revenue (which they do in peak season), the net returns remain attractive.

First-time investors may find Oceans One a compelling choice for its balance of upscale appeal (attracting renters willing to pay a premium) and investor flexibility (no rental restrictions, etc.). Seasoned investors likely compare numbers across buildings – and many will keep Oceans One on their short list for high-grossing condos in the $200–500K range.

Actionable Insights for Investors

Finally, let’s distill some actionable tips whether you’re new to vacation rentals or adding to your portfolio:

• Focus on Net Returns: Don’t be seduced by just the gross income. Look at net ROI after HOA and expenses. Oceans One can gross high, but its HOA is equally high – run the numbers (as we did) to ensure it meets your target cap rate. Aim to self-manage or find efficient management to keep more of that gross.

• Unit Selection Matters: Within Oceans One, choose a unit with an edge – e.g. a high-floor unit with better views, a corner unit with extra windows, or a lock-out 3BR for flexibility. A little difference can mean a lot in rental appeal. If deciding between a slightly pricier renovated unit vs. a cheaper outdated one – often the renovated unit is worth it, as it will rent for more and get better reviews immediately (and you avoid downtime/cost of doing renovations yourself).

• Seasonal Cash Flow Planning: Set aside reserves from your summer profits to cover winter carrying costs. The strong summer cash flow must sustain the property through off-season. Many investors escrow 1/12 of annual expenses each month, or simply don’t pull out all the summer earnings, to have a cushion for winter bills, mortgage, and HOA when rental income is thin.

• Leverage Tax Benefits: Remember to take advantage of tax strategies. Depreciation on the condo (the building portion of your purchase) can significantly shelter your rental income from taxes – often you can depreciate ~$150-200K of the value over 27.5 years, which is a nice paper loss each year. Combined with expense write-offs (interest, HOA, management, etc.), you may show a tax loss even if you have positive cash flow – meaning you pay little to no income tax on the rental profits (subject to passive loss rules). Consult a CPA on whether you qualify to use excess losses against other income (e.g. qualifying as a real estate professional or doing cost segregation to accelerate depreciation). Also consider 1031 exchanges when you sell to keep building wealth tax-deferred.

• Monitor and Adapt: Continuously monitor your booking trends and guest feedback. If a particular month is under-performing (e.g. slow April), try a promotion or adjust your minimum stay. If multiple guests mention an issue (e.g. “wifi was weak” or “sofa uncomfortable”), invest in fixing it promptly – those improvements often pay for themselves in future bookings. Treat your condo like a top-rated hotel suite; strive for that level of cleanliness and amenities. Small touches like providing beach chairs, a cooler, or board games can earn you great reviews and repeat renters.

• Compare to Alternatives: Keep an eye on how similar units at Bay View, Atlantica, etc., are priced and performing. This helps ensure your pricing stays competitive. It also might reveal if your resort starts to lag (unlikely, but if say a newer resort opens, etc.). Right now, Oceans One is holding its own, but investors should always scan the landscape. Perhaps down the road you might use equity here to trade up to an even higher-end property (using, say, a 1031 into a 3BR at a ultra-luxury resort). Knowing the market will help you spot those opportunities.

• Exit Strategy/Long Term: Have an exit or long-term plan. Is this a 5-10 year hold for appreciation then 1031 into something else? Or a forever hold to generate retirement income (perhaps eventually paid off = great cash flow)? Myrtle Beach’s growth suggests values may rise, but also be prepared for market cycles. It’s wise to build equity (e.g. consider using some cash flow to prepay principal) so that you’re not over-leveraged if a downturn hits. The good news: you can always fall back on long-term renting the condo if STR rules changed or tourism slumped – a beach condo could rent monthly in the winter or annually relatively easily (AirDNA notes you can still rent it long-term with lower yield if STR ever wasn’t viable). So the property has intrinsic value beyond just short-term use.

By following these insights, first-timers can avoid common pitfalls and seasoned investors can optimize returns. Oceans One Resort, with its strong rental track record and prime location, can be a profitable addition to your portfolio when managed diligently. The combination of high rental income potential, tax efficiency, and the enjoyment of owning a piece of Myrtle Beach oceanfront makes it an attractive investment to many. Just be sure to do your homework, run the numbers, and actively manage the asset for the best outcome.

Sources: The analysis above incorporates data from actual MLS sales and rental figures, market statistics, and professional investment advice to provide a current (2023–2024) and comprehensive view. Each investor’s situation will differ, but the trends and metrics outlined serve as a decision-useful guide for evaluating Oceans One Resort as an investment opportunity.