Investing in Paradise Resort, Myrtle Beach (2023–2024 Performance Analysis)

Overview of Paradise Resort and Unit Types

Paradise Resort in Myrtle Beach, SC is a popular oceanfront condo-hotel (condotel) offering a range of fully furnished units from studio efficiencies to 1-, 2-, and 3-bedroom condos, even including some 4-bedroom lockout configurations. The resort was built in the mid-2000s (circa 2006) and features modern amenities – indoor/outdoor pools, a lazy river, hot tubs, on-site dining (a cafe, tiki bar, Ben & Jerry’s), and a prime beachfront location on the south end of Myrtle Beach. These amenities, combined with proximity to attractions like the airport, Market Common, and boardwalk, make Paradise Resort highly attractive to vacationers.

For investors, each unit type at Paradise Resort presents a different entry price and income profile: studios (~400 sq ft) are the most affordable, 1-bedroom “suites” (~600–700 sq ft) are mid-priced, 2-bedrooms (~1000+ sq ft) command higher prices, and 3-bedrooms (~1300+ sq ft) are premium oceanfront offerings. Below, we dive into the short-term rental performance of each unit type in 2023–2024, including gross income, occupancy trends, seasonal patterns, rates, and expenses. We also examine ROI projections, guest reviews, HOA details, and advanced investment strategies (1031 exchanges, retirement-fund investing, self-management) to provide actionable insights for both new and experienced real estate investors.

Short-Term Rental Performance by Unit Type (2023–2024)

Paradise Resort has been a strong performer in the Myrtle Beach short-term rental market, with rental income rebounding post-pandemic and remaining robust through 2023 and 2024. The table below summarizes key rental metrics by unit type, based on the latest available data:

Notes: Gross income figures are before expenses and are based on recent actuals/averages. Occupancy and rates are approximate, illustrating typical patterns; actual performance varies with management, unit updates, and owner usage. (Paradise also has a few 4BR lockout combinations which can be rented as a 3BR + studio separately; those unique units have exceeded $70–$80k gross by renting in dual modes, but are not the focus here.)

Studios (Efficiency Units)

Studio units at Paradise Resort are the smallest and most budget-friendly option for investors. These efficiencies (around 400 sq ft) usually feature an open room with 2 queen beds or a king bed plus a sleeper sofa, a kitchenette, and a balcony. Despite their size, studios can accommodate 4–6 guests, making them popular with couples and small families looking for an affordable oceanfront stay.

• Gross Income & Rates: In 2023, studio units at Paradise are estimated to gross around $25k–$30k+ in rental revenue. While we don’t have a specific MLS-reported figure for a studio, their performance typically trails the 1BR units by ~20–30%. This still outpaces many comparable studios in older resorts. Nightly rates for studios range from ~$60–$100 in winter to $150–$200+ in July/August (peak weekends). One guest review noted paying “less than a hundred bucks a night” in the off-season for a Paradise studio, which was a great deal given the “beautiful view” and comfortable stay.

• Occupancy & Seasonality: Studios often achieve slightly higher occupancy percentages than larger units, simply because their lower price attracts bargain travelers year-round. Summer occupancy is near full (often ~90%+ in June–August), and studios also fill up on many spring and fall weekends due to couples’ getaways and events. In the winter off-season, occupancy drops significantly (sometimes <30% monthly), but studios are occasionally taken for monthly “snowbird” rentals or weekend stays. Paradise Resort even offers winter monthly rates for long-term guests (e.g. an ocean-view efficiency at ~$870–$1,320/month in Dec–Mar) to keep units occupied during the slow season.

• Takeaway: Studios provide a low entry price and steady demand. They’re easiest to keep rented in shoulder seasons due to price sensitivity of travelers. However, their total income is capped by smaller size and lower rates. For a new investor, a studio can be a lower-risk first step into oceanfront rentals, though high HOA fees (as we’ll discuss) can eat into the profits more heavily relative to the income.

1-Bedroom Condos

The one-bedroom units at Paradise Resort are a sweet spot in terms of investment and rental appeal. These units (~600–750 sq ft) have a separate bedroom plus a living area (often with a sleeper sofa and sometimes a Murphy bed), full kitchen, and balcony. Many 1BRs can sleep 6–8 guests comfortably, which broadens the renter audience (couples, small families, even two couples sharing).

• Gross Income: One-bedroom condos at Paradise averaged about $40k in gross rental income in 2023. In fact, an analysis of Paradise Resort found that 1-BR units averaged $41,775 in annual gross income recently. Individual units confirm this range: for example, one 1BR unit grossed $43k in 2021 and $35.5k in 2022 (the dip in 2022 likely reflecting normalization after the 2021 travel surge). For 2023, many 1BRs were back around the $38k–$42k mark, and 2024 seems on track or slightly higher in some cases. This performance is exceptional for a 1BR condo – by comparison, a similar 1BR at Ocean Reef Resort grossed only about $30k, highlighting Paradise’s strong rental demand.

• Occupancy & Rates: Annual occupancy for 1BRs hovers around 60–65% of nights. These units see extremely high occupancy in summer (often booked solid from Memorial Day through Labor Day). Peak season nightly rates for a 1BR at Paradise are roughly $200–$300 per night (plus fees/taxes) depending on exact dates – families are willing to pay a premium for the oceanfront balcony and resort amenities. In the shoulder seasons (spring and fall), rates run ~$100–$150/night and occupancy is moderate (weekends often full, weekdays slower). Winter months see deep discounts – rates might drop to $60–$80/night, and long-term snowbird rentals are common (Paradise offered ~$1,180/month for 1BR suites in Dec–Feb on their winter program). This equates to roughly 25% occupancy, which, while low, still generates some off-season income to offset carrying costs.

• Example: A specific 1BR unit (Unit 1003) sold in 2024 gives insight into finances. It was a 672 sq ft 1BR that grossed ~$35,500 in 2022 and $43,000 in 2021. Priced around $240k, it had a monthly HOA of $710. We’ll analyze expenses later, but the high income on that price indicates a potential double-digit cap rate in strong years.

• Seasonal Trend: Summer 2024 saw slightly shorter stays in Myrtle Beach overall, as some travelers opted for 3-4 night trips instead of full weeks, leading managers to adjust rates to fill gaps. Even so, Paradise 1BRs maintained excellent summer occupancy – the short stays likely meant higher turnover with cleaning fees, but owners using dynamic pricing kept revenue high. Off-season 2023–24 visitor numbers in Myrtle Beach were similar to 2022, so 1BR occupancy in winter remained mostly long-term renters or occasional holiday bookings.

• Takeaway: A 1-bedroom at Paradise Resort is arguably one of the best investment options for balancing cost and return. They generate nearly as much revenue as some 2BR units in other resorts, thanks to efficient layouts that maximize sleeping capacity and strong guest demand. New investors often gravitate to 1BRs for this reason, and experienced investors value them for their high ROI per dollar spent.

2-Bedroom Condos

Two-bedroom condos at Paradise Resort offer more space (typically ~1,000–1,150 sq ft) with two private bedrooms, two baths, and a larger living/dining area. They tend to sleep 8–10 guests (e.g. a king or queen in each bedroom plus sofa beds). These units attract families and groups needing extra room, especially in summer.

• Gross Income: Recent sales and listings indicate 2BR units at Paradise gross around $40k to $45k per year in rentals. One direct oceanfront 2BR (unit 1407) earned $40,422 in 2023, while another 2BR (unit 1806) hit $44,265 in 2024. Yet another 2BR (unit 1607) reported $42,404 in 2024. This consistency in the low-$40k range suggests a reliable performance. It’s noteworthy that Paradise’s 2BR condos rival the 1BRs in income. The gap isn’t huge – partly because the 1BRs are already optimized to sleep many guests. However, 2BRs still hold an edge, especially in peak weeks when larger families book them at higher rates. By comparison, a 2BR at a similar resort might earn less; for instance, one Oceans One 2BR was advertised at ~$40k gross in 2024, comparable but not higher. Paradise’s strong showing in this category underscores the resort’s popularity.

• Occupancy & Rates: Occupancy for 2BR units is around 60% annually, similar to 1BRs, but with a different distribution. In summer, 2BRs are extremely popular with extended families – they often book full weeks back-to-back. Peak nightly rates are higher: a 2BR in July can fetch $300–$400+ per night (especially for oceanfront and higher-floor views). In off-peak times, however, 2BRs can be harder to rent than smaller units; a couple or small group might opt for a cheaper 1BR or studio instead of paying extra for unused space. As a result, 2BR owners often price aggressively in spring/fall to keep occupancy up (e.g. $120–$180/night in shoulder season). Winter: 2BR condos sometimes secure monthly snowbird rentals, given they offer more comfort for long stays. Paradise’s winter monthly rates for a standard 2BR were about $1,440–$1,630 in Dec–Feb (roughly $50–$55/night) – a deep discount, but it can fill an otherwise vacant period.

• Seasonal Earnings Pattern: The income of 2BRs tends to be more seasonal than 1BRs. They might make a very large chunk of their annual revenue in just June–August. For example, one could see $30k of the $45k annual gross just in the summer quarter, then the remaining $15k spread over spring break, a bit in fall, and monthly winter rentals. This means cash flow management is key – big summer profits will subsidize the low winter months.

• Takeaway: Two-bedroom units appeal to investors who want higher total income and the ability to attract larger bookings. They cost more to purchase (often in the mid-$300s) but can still yield solid cap rates. The risk is slightly more vacancy in off-season and higher dependency on peak season. Experienced investors often diversify by owning at least one 2BR to capture the lucrative summer family market. Paradise Resort’s 2BRs have proven to be excellent income generators for their class, often matching the performance of 2BRs in resorts with waterpark amenities.

3-Bedroom Condos

Three-bedroom condos at Paradise are spacious oceanfront units (~1,350+ sq ft) designed to host large families or groups (10+ guests). Typically 3BR units have two full bathrooms, a full kitchen, and often are corner or prime oceanfront locations in the building (enhancing their desirability). These are premium units in terms of both rental and ownership.

• Gross Income: A well-run 3BR at Paradise Resort can gross in the mid to high five figures annually. While exact figures can vary, these units often exceed $50,000 per year in rental income under diligent management. Realtors have noted some 3BR condos at Paradise have a “high rental income history” – though specific numbers weren’t published, it implies performance on par with the best in this segment. For context, top-tier 3BR units in Myrtle Beach (e.g. at Dunes Village or Oceans One) can hit $80k–$100k in banner years, especially if they include lockout sections. Paradise’s 3BRs likely reach $55k–$65k in a strong year when fully capitalizing on summer and decent shoulder season use. In slightly weaker travel years or if the owner uses it for personal time in summer, mid-$40k range could occur. (A recent sale of a 3BR end-unit at ~$388k touted the great rental track record, suggesting it was producing enough to justify that price).

• Occupancy & Rates: 3BR units see the most seasonal swing. In peak summer, they are in hot demand by multi-generational families or groups splitting the cost – often running near 100% occupancy in July. Those weeks can command $400–$500 per night for a 3-bedroom oceanfront condo. Large groups will book these far in advance for summer vacations. However, outside of summer, 3BRs have higher vacancy. It’s uncommon to see a 3BR booked in, say, a random week of February unless it’s a winter monthly renter (and most snowbirds don’t need 3 bedrooms, but occasionally two couples will share one). Spring Break and holiday weekends (like Thanksgiving or Easter) can bring short spurts of 3BR rentals at moderate rates ($200-ish/night). But owners should expect that from November through March, their 3BR might only be occupied if they arrange long-term winter rentals. Paradise Resort’s winter rates for 3BR units were around $1,650–$1,820/month in Dec–Feb (only ~$55–$65 per night) – meaning if you don’t secure a winter renter, the unit could sit empty or only get a few short bookings.

• Guest Stays: Another trend in 2024 was shorter booking windows – even for large condos. Some groups came for 3-4 nights instead of week-long stays, which can leave mid-week gaps. Smart investors mitigate this by accepting shorter stays to fill the calendar, or by slightly lowering rates to entice week-long bookings to return. The average occupancy for 3BRs might only be ~50% annually, due to the long empty off-season. But because the rates and capacity are high in summer, the revenue still competes with smaller units that have higher occupancy. Essentially, fewer total nights are rented, but at a higher dollar per night.

• Takeaway: Three-bedroom condos are high-reward, higher-variance investments. They shine during peak tourism periods – a single 3BR can gross as much in one prime week as a studio might in a month. For investors with the capital to purchase 3BR units (often priced $400k+), the ROI can be attractive, but you must be prepared for the off-season doldrums. Some experienced investors like to strategically use their 3BR in winter for personal use (since rentals are sparse anyway), and then rent it aggressively in summer for income. Paradise Resort’s 3BR units benefit from the resort’s popularity, but owners should still actively manage pricing and consider off-season strategies (like snowbird rentals or renovations during winter) to maximize annual returns.

Gross Income and Seasonal Trends Analysis

Myrtle Beach’s rental market is highly seasonal, and Paradise Resort is no exception. Here’s a closer look at occupancy and seasonal income patterns influencing all unit types:

• Summer (Peak Season): June, July, and August are the cash cows. During these months, Paradise Resort condos often achieve 90–100% occupancy across all unit types. High demand allows for premium pricing. Owners typically see the bulk of their gross income (60% or more of annual) generated in summer. For example, the General Manager of a nearby resort noted in 2024 that guests shortened stays slightly, but resorts would cut rates a bit and fill up anyway. At Paradise, one might reduce a 7-night minimum to 3-night stays in late August, for instance, to ensure no vacant nights – keeping that occupancy maxed out. Actionable Insight: It’s crucial to optimize pricing in peak season – too low and you leave money on the table; too high and you risk empty nights which are very costly given the high potential revenue per night.

• Fall (Shoulder Season): September and October see a dip in tourists but still pleasant weather. Occupancy might average 50–70% in fall. Weekend bookings remain strong (e.g. festivals, fall breakers, golfers), but mid-week occupancy declines. Rates drop from summer highs – perhaps ~30–40% lower than July. The gross income in fall is much lower than summer, but it’s a great time for monthly rentals (some “extended summer” renters) or mid-length stays. Paradise Resort often runs specials in fall to attract guests (e.g. stay 3 nights, get 1 free) which help bolster occupancy. Investors should anticipate a revenue drop after Labor Day, but it’s a good time to schedule any maintenance or deep cleaning due to the lighter calendar.

• Winter (Off-Season): November through February are the slowest months for vacation rentals in Myrtle Beach. Occupancy can be extremely low (often <20% in dead of winter for short stays). However, many owners shift to monthly rentals for “snowbirds” escaping colder climates. Paradise Resort actively markets winter rentals: for instance, an oceanfront 1BR was ~$1,180/month and a 3BR ~$1,650/month in Jan. These rates are bargains (effectively $40–$60/night), but snowbirds often stay 2–3 months, providing guaranteed income and covering a good portion of carrying costs. The resort even adds perks like free coffee and restaurant discounts for long-term winter guests. Seasonal Pattern: Don’t expect profit in winter – think of it as covering the bills. Some owners choose to use their condo personally in winter or do renovations then, essentially writing off the income in exchange for personal enjoyment or property improvement.

• Spring (Shoulder Season): March through May is a transitional period. Spring Break in March/April can bring a surge (families and college spring breakers alike), and April weekends start to fill up. By late April and May, occupancy climbs steadily, especially around Easter and Memorial Day. Nightly rates start low in March (not far above winter rates) but rise significantly by May. Example: A 2BR might get $120/night in early March, but $200+ by mid-May. Gross income in spring often surpasses fall’s, as it’s ramping up to peak. In 2023 and 2024, spring tourism was strong, though slightly below the pent-up demand highs of 2022. Key metrics show Myrtle Beach short-term rentals had a median occupancy ~62% and ADR ~$121 overall – Paradise’s spring numbers would be at or above those medians given its location and amenities.

• Market Trend 2024: It’s worth noting that short-term rental occupancy dipped ~7% in summer 2024 vs 2023 across Myrtle Beach, likely due to more rental inventory (many owners jumped into the STR market in recent years). However, hotel occupancy actually rose in the same period, meaning competition is stiff. Paradise Resort’s strong branding and on-site rental program likely helped it retain high occupancy despite this trend, but investors should stay vigilant about the increasing supply. This underscores the need for good reviews and competitive pricing (detailed next) to capture bookings in a slightly softer market.

In summary, seasonality is the dominant factor in cash flow forecasting for Paradise Resort condos. Smart investors will project conservatively by assuming winters with minimal income and verifying that peak season rates are achievable. Diversifying bookings with monthly winter stays or targeting off-peak events (marathons, holiday shows, etc.) can smooth the income curve a bit. The 2023–2024 data shows that Paradise Resort remains one of the top performers in its class year-round, even as the market normalizes post-pandemic.

Guest Reviews and Reputation (Airbnb, VRBO, Booking.com)

The guest experience at Paradise Resort directly impacts rental performance. Higher guest satisfaction leads to repeat bookings, positive reviews, and the ability to charge premium rates. Overall, guest review trends for Paradise Resort in 2023–2024 have been very positive, with a few nuances:

• High Ratings: Paradise Resort consistently scores well on booking platforms. Many Airbnb and VRBO listings for Paradise boast ratings of 4.7–5.0 stars. In fact, multiple Airbnb hosts note that “100% of guests in the past year gave this location a 5-star rating” – a testament to the resort’s excellent oceanfront location and convenience. Guests love being right on the beach and close to attractions, and they frequently praise the view from the balconies and the resort’s pool amenities. On Booking.com, Paradise Resort often rates around 8.5/10 (“Excellent”), with location usually scoring highest.

• Positive Feedback Themes: Common praise in reviews includes:

  • Location & Views: As mentioned, nearly every guest highlights the fantastic beachfront view and how relaxing it is to hear the ocean from their room.

  • Family-Friendly Amenities: Guests appreciate the pools, lazy river, and on-site restaurant/tiki bar – especially families with kids (having water attractions and an ice cream shop on-site is a big plus).

  • Spacious Units: Many reviews (Airbnb/VRBO) are from groups who were surprised at how many people the condos could accommodate comfortably. A 1BR that sleeps 8 or a 3BR that sleeps 12 allows for group travel, which guests value when splitting costs.

  • Staff & Check-in: For those who used the on-site rental desk, reviews often mention friendly staff and easy check-in. Self-managing hosts have their own check-in procedures, but generally, the Brittain Resorts management is well-regarded in maintaining the property.

• Negative Feedback / Issues: No property is perfect, and Paradise Resort has had some minor recurring critiques:

  • Dated Decor or Maintenance: A few units, particularly those not recently renovated by owners, get comments like “in need of some upgrades” and minor maintenance issues (e.g. a broken towel rack, as one guest noted). These comments usually accompany an otherwise decent review (the same guest still enjoyed the comfy beds and view). This indicates some units could benefit from refreshes – important for an investor to keep the unit updated to sustain high reviews.

  • Housekeeping Glitches: Occasionally, guests mention that the cleanliness wasn’t 100% on arrival (e.g. some dust or an item left behind). This is often tied to peak season turnovers when housekeeping is rushed. However, such issues are not rampant in reviews, suggesting they get addressed.

  • Elevators/Noise: In a few busy summer reviews (especially on TripAdvisor), guests have mentioned long waits for elevators or noise from other guests. One reviewer complained the resort “is run by the group of guests, more than the staff” (implying a bit of rowdiness). High traffic in peak season can lead to these inconveniences, but they are typically seen at all large resorts.

• Impact on Rentals: Despite minor negatives, Paradise Resort’s reputation is strong. The high volume of positive 5-star reviews on Airbnb/VRBO means future guests have confidence booking at premium prices. Investor Tip: Actively manage your unit’s guest experience:

  • If self-managing, respond to reviews, fix reported issues quickly, and highlight positives in your listing.

  • If using the on-site program, monitor your unit’s condition – update furniture or appliances as needed (this can boost guest satisfaction and thus your rental revenue).

  • Encourage happy guests to leave reviews on your listing. Many bookings at Paradise are influenced by word-of-mouth and online ratings.

In summary, guest reviews for Paradise Resort are a net positive factor for investors. The resort’s brand and amenities set a high floor for guest satisfaction. By keeping an individual unit well-maintained and addressing any feedback, owners can ride the wave of Paradise’s strong reputation to keep occupancy and rates up. Satisfied guests become repeat visitors – for example, families that come every summer to the same resort (sometimes even requesting the same unit). Building that kind of loyalty is invaluable for long-term rental success.

HOA Fees, Inclusions, and Rental Policies

A crucial aspect of condotel investments is understanding the Homeowners Association (HOA) fees, what they cover, and any rules/restrictions that might affect your rental strategy. Paradise Resort’s HOA is comprehensive but notably high – a common trait among oceanfront resort condos due to extensive amenities and included services.

• HOA Fee Amounts by Unit Type: HOA dues at Paradise Resort are charged monthly and vary by unit size:

  • Studio/Efficiency: ~$600–$700 per month. (E.g., one 1BR efficiency unit’s HOA was $672/mo, and another smaller unit was cited at $608 in an HOA list.)

  • 1-Bedroom: ~$700–$800 per month. (Many 1BR fall in the low $700s; one example unit had $710/mo.)

  • 2-Bedroom: ~$1,000–$1,100 per month. (E.g., a 2BR unit had HOA ~$1020/mo per MLS.)

  • 3-Bedroom: ~$1,400–$1,500 per month. (The 3BR end-unit listing showed $1,459/mo.)

  • 4BR Lockout combo: ~$1,900 per month. (The penthouse 4BR lockout unit had HOA $1,904/mo.)

  These fees are on the higher side; however, it’s important to see what’s included in them.

• What the HOA Includes: Paradise Resort’s HOA dues are all-inclusive, covering virtually all operating expenses of the unit except property taxes. According to HOA details, the monthly fee covers:

  • All Utilities: Electricity, water/sewer, cable TV, and high-speed internet are included in the HOA. This means owners (or their guests) don’t pay separate utility bills – a big plus for short-term renting, as you don’t have to worry about utility usage spikes.

  • Building Insurance: The HOA covers the master insurance policy (hazard and liability for the building). Owners may only need an HO6 condo insurance for contents/liability.

  • Common Area Maintenance: Upkeep of pools, elevators, structure, landscaping, etc. is included. This also covers pest control, trash pickup, and security.

  • Amenities & Resort Services: Maintenance of the pools, lazy river, gym, and other recreation facilities is paid from HOA dues. Often resort HOA fees also contribute to on-site services, possibly even things like front desk or on-site rental office support.

  • Management & Admin: The HOA fee includes association management and accounting/legal costs.

  In short, the HOA fee is high but it replaces many costs a normal condo owner would pay separately (electric, cable, water, etc.). For an investor, this simplifies budgeting – your fixed monthly HOA essentially covers the unit’s operational overhead.

• HOA Assessment and Stability: It’s wise to inquire about the HOA’s financial health. The fees at Paradise have been fairly stable year to year, with slight increases for inflation. There have been no major surprise assessments reported recently – the building being relatively newer (2006) means fewer huge repair projects so far. The HOA has to maintain all those amenities, so staying informed on their reserve funds is prudent (for example, a future roof or façade job).

• Rental Policies and Restrictions:

  • Short-Term Rentals: Paradise Resort allows short-term rentals (nightly/weekly) – indeed that’s the primary usage. There are no minimum rental periods enforced by the HOA beyond perhaps requiring guests to be registered, etc. Owners are free to rent on Airbnb, VRBO, etc., or through any management company of their choice.

  • On-Site Rental Program: The resort (managed by Brittain Resorts) offers an on-site rental management program for owners, which many participate in. It’s not mandatory to use them, but they make a strong case by handling marketing, guest services, and maintenance. (We’ll discuss the trade-offs in the management section.)

  • Owner Use: Owners can use their condo for personal stays as much as they want. There’s no limit or blackout period for owner usage (aside from honoring any bookings you’ve already made for renters). If you’re in the on-site program, you typically just have to block off your own dates in advance.

  • Guest Registration: If self-managing, the HOA may require you to register your guests and have them abide by resort rules. Brittain Resorts provides “homeowner services” and likely coordinates things like parking passes and cleaning for those in their program.

  • Amenities Access: One potential restriction in some condotels is whether guests of owners not in the on-site program can use all amenities. At Paradise, all condo owners’ guests do have access to pools and facilities (there haven’t been reports of amenity restrictions). They will have all the same access as a hotel guest – the resort issues wristbands or keys for amenities regardless of who manages the unit.

  • Pets and Smoking: As a resort/HOA rule, guests are not allowed pets (common for Myrtle Beach resorts) and units are non-smoking. Owners typically also cannot have pets in the units (pet restrictions noted), except sometimes owners may petition for a service animal or similar – but assume no pets.

  • Renovations: Any interior renovations by owners must follow HOA guidelines (e.g., use approved contractors, hours for work, etc.), but there’s usually flexibility to upgrade your unit as you see fit (which is good for keeping it competitive).

• Rental Commission/Fees: While not an HOA rule per se, note that the on-site rental management takes a commission (often around 40-50% of gross rental to cover marketing, cleaning, credit card fees, etc.). This is standard for full-service management in Myrtle Beach. If you self-manage, you avoid that commission but you’ll have other expenses like cleaning and booking platform fees (~3% on Airbnb). The HOA itself does not take a cut of rentals – it’s purely for maintenance and operations.

Key Insight: The HOA fee, though high, bundles most expenses which can make the net operating income more predictable. When comparing properties, investors should account for these inclusions. For example, a $700 HOA that includes electric/internet may be equivalent to a $500 HOA elsewhere that doesn’t include them (where you’d pay $150+ separately for those utilities). In Paradise’s case, the HOA covering electricity is significant because running AC in summer for back-to-back rentals can be costly – here that cost is on the HOA, not the owner. This helps maintain consistent ROI as energy prices fluctuate.

No onerous owner restrictions exist at Paradise Resort that would impede your investment use. Owners have flexibility to rent or use as they wish, which is a big plus (some condo buildings require using their management or limit short rentals – Paradise does not impose such restrictions). Always double-check the latest HOA bylaws, but the environment is very investor-friendly.

ROI and Cap Rate Projections (With and Without Financing)

Ultimately, an investor wants to know: What return can I expect from a Paradise Resort condo? Using the 2023–2024 performance data, we can project Return on Investment (ROI) in terms of cap rate (unleveraged return on purchase price) and cash-on-cash return with financing. We’ll illustrate with a 1BR unit example and then discuss other types.

Income & Expense Assumptions for Analysis

Let’s consider a typical 1-bedroom Paradise condo (since we have solid data for that scenario):

• Purchase Price (2024): approximately $240,000 (recent sale for an oceanfront 1BR).

• Gross Rental Income: about $40,000/year (midpoint of recent range).

• Operating Expenses:

  • HOA Fees: ~$710/month = $8,520/year.

  • Property Tax: ~$2,300/year (for a $240k value, per Horry County – e.g., one unit’s tax was $2,363).

  • Insurance: ~$500/year (interior condo insurance + liability; building insurance is in HOA).

  • Repairs/Maintenance reserve: ~$1,000/year (for small repairs, appliance replacements, etc.).

  • Management: if using on-site, assume 40% of gross = $16,000; if self-managing, this can be much less (we’ll do both scenarios).

Scenario A: On-Site Management (higher gross, high commission)

• Gross Income: $40,000

• Rental Management Fee (40%): –$16,000 (covers cleaning, booking, etc.)

• HOA: –$8,520

• Taxes & Insurance: –$2,800

• Maintenance: –$1,000

• Net Operating Income (NOI): ≈ $11,680.

Cap Rate = NOI / Purchase Price = $11,680 / $240,000 ≈ 4.9%. This is the cap rate after paying a hefty management fee. Many local investors look at “net to owner” after commissions, which this reflects.

• If financed with, say, 25% down ($60k) and a 30-year loan at 7% for $180k: Annual debt service ~ $14,350. This scenario would actually have a slight negative cash flow (~$11.68k NOI – $14.35k debt = –$2.7k). So with full-service management and high HOA, a 1BR would not cash flow with 25% down at current interest – you’d likely need a larger down payment or better terms.

Scenario B: Self-Management (Airbnb/VRBO with cleaners)

• Gross Income: Could be slightly lower or similar (some argue on-site gets more bookings; others find self-managers can equal or exceed it due to personalized marketing). Let’s assume $38,000 (slightly lower to be conservative).

• Platform Fees (Airbnb 3% + payment fees): –$1,140 (3% of gross).

• Cleaning & Airbnb Management Costs: The guest usually pays a cleaning fee that covers your cleaner expense, so we won’t count it against you if done right. You might pay a local co-host or just handle messaging yourself. Let’s assume you pay an independent cleaner and maybe a small referral fee total $3,000/year (this is roughly $100/turnover, with ~30 turnovers).

• HOA: –$8,520

• Taxes & Insurance: –$2,800

• Maintenance: –$1,000

• Net Operating Income: ≈ $21,540.

Cap Rate = $21,540 / $240,000 = 8.98%, basically ~9% cap. This is a much healthier unlevered return, reflecting the savings from not paying a large commission. Many efficient self-managing owners target cap rates in the 8–10% range for Myrtle Beach resort condos, and Paradise 1BRs can deliver that.

• If financed (same $180k loan at 7%): Annual debt ~$14,350. Cash flow after debt = $21,540 – $14,350 = $7,190. On a $60k down payment, that’s a cash-on-cash return of ~12%. If one negotiated a lower rate or did a 20-year loan, etc., results vary, but clearly leverage boosts the return here.

These are simplified models, but they highlight that self-management can nearly double the ROI compared to hands-off management for Paradise units. It comes at the cost of your time and effort, of course.

Larger Units:

• 2BR Example: Purchase maybe ~$320,000. Gross ~$42,000. HOA ~$1,000/mo ($12k/yr). Taxes ~$3,000. NOI with self-mgmt might be around $42k – $1.26k (Airbnb fees) – $12k (HOA) – $3k (tax/ins) – $1.5k (maint) – $3.5k (cleaning etc) = ~$20.7k. Cap rate ~6.5%. Actually, if gross can be pushed to $45k and management optimized, could get ~7%. With 25% down, cash-on-cash perhaps 8–10%. So 2BRs might show slightly lower % returns unless bought well, but higher absolute cash flow.

• 3BR Example: Purchase ~$450,000. Gross ~$55,000. HOA ~$1,450/mo ($17.4k/yr). Taxes ~$4,500. NOI self-managed: $55k – $1.65k (3% fees) – $17.4k HOA – $4.5k tax/ins – $2k maint – $4k cleaning = ~$25.45k. Cap ~5.7%. It’s lower because of the very high HOA. However, if one were to capture an outsized income (say $60k+) and control costs, maybe you hit ~6–7% cap. With financing, 3BR might also be slightly cash flow positive if managed tightly (these often require 30%+ down or higher rates due to condotel loans, which can affect leverage).

ROI Summary: A well-bought and well-managed Paradise Resort condo can yield a respectable cap rate in the high single digits (and in banner years, potentially double-digit). Cap rates ~6–9% are common range depending on management approach. Without financing, these are solid yields compared to many coastal markets. With financing, given current interest rates (hovering ~7% in 2024/25 for condos), the cash-on-cash returns can be higher than cap – leveraging ~50-75% loan-to-value could push cash ROI into the low teens as shown, but only if management fees are kept low. If you go with a high-cost rental program, the debt will likely eat all profit.

Risk Factors: Keep in mind, ROI can fluctuate:

• In a down year (say another 2020 scenario or economic slowdown), occupancy and rates could drop, hitting income by 20% or more. That would compress these returns accordingly.

• HOA fees and taxes will rise over time, so factor modest increases into long-term projections (e.g., assume 3% annual HOA increase).

• Financing for condotels often comes with slightly higher interest rates or require larger down payments (some banks might want 30% down for a condotel unit, or a higher interest due to perceived risk). This can affect cash flow calculations.

ROI Boosters:

• 1031 Exchange (defer taxes on initial investment): If you’re buying via a 1031 exchange (more on this later), the initial return might effectively be on pre-tax dollars, which can make it more attractive.

• Personal Use Value: Not in ROI math, but if you plan to use the condo yourself a couple weeks a year, that vacation value is a perk that offsets some opportunity cost of not renting those weeks.

• Appreciation: We’ve focused on rental income ROI. Don’t forget long-term appreciation potential. Oceanfront condos saw significant appreciation from 2020–2022. While 2023–2024 values leveled off, owning a high-demand property like Paradise could net capital gains over a multi-year hold, boosting overall return on equity when you sell (especially if you 1031 again to defer gains).

In conclusion, Paradise Resort condos can be cash flow positive investments with proper management. A cash buyer can see ~6–9% cap rates today, and a financed buyer might achieve >10% cash returns if leveraged smartly and self-managing. Given the solid rental track record (e.g. 1BR averaging ~$41k gross) and relatively predictable expenses (HOA covering most bills), an investor can run pro formas with a good degree of confidence. Always perform unit-specific due diligence (get the actual past rental statements of the unit you’re buying if possible), but the data suggests ROI at Paradise Resort is among the better ones for Myrtle Beach oceanfront property in this class.

Investment Strategies for Paradise Resort Condos

Investing in a vacation rental condo offers multiple strategies beyond the basic rent-and-hold approach. Here we discuss some advanced strategies and considerations that can optimize your investment in Paradise Resort:

1031 Exchange: Upgrading or Deferring Taxes

A 1031 exchange allows you to defer capital gains tax when you sell one investment property and buy another “like-kind” property. Many investors use 1031 exchanges to roll gains from other real estate into vacation rentals:

• Example: Suppose you sell a rental house elsewhere and have $100k of capital gain. By purchasing a Paradise Resort condo as a replacement property via a 1031, you defer paying tax on that $100k gain. This effectively gives you more buying power (since that tax deferred money goes into the new property).

• This strategy is great if you are transitioning from a property that maybe had lower yield or too much upkeep into a more passive rental like a condotel.

• Keep in mind 1031 timelines and rules: you must identify replacement properties within 45 days of selling and close within 180 days. Work with a qualified intermediary. Condos qualify as like-kind real estate.

• Investor Insight: Paradise Resort could be an ideal “upleg” 1031 property for someone wanting to diversify into short-term rentals. It has strong income to cover holding costs, and as long as you plan to hold it as an investment, you’ll maintain that tax deferral until perhaps you sell and exchange again (or eventually cash out, paying tax then).

• Additionally, if you already own a Paradise unit and it has appreciated, you could 1031 exchange into a larger unit or multiple units. For instance, sell a 1BR and buy a 2BR (for more income potential) without immediate tax hit – or swap one Myrtle Beach property for another to reposition your portfolio.

Using Retirement Funds (IRA/401k) to Purchase

Some investors consider using a self-directed IRA or Solo 401(k) to invest in real estate like Paradise Resort condos. This can be done, but has specific rules:

• A self-directed IRA (SDIRA) can own real estate, but it must be for investment only – you (and family) cannot use the condo personally if it’s owned by your IRA (that would be a prohibited transaction). All expenses must be paid from the IRA and income goes back into the IRA.

• You’ll need a self-directed IRA custodian that allows real estate. Alternatively, a Solo 401k (for self-employed individuals) can also purchase property.

• Financing complexity: If your IRA buys the condo outright (cash purchase by the IRA), it’s straightforward within the IRA. If you need a mortgage, it must be a non-recourse loan (since IRS rules bar personal guarantees on IRA debts). Non-recourse loans on condotels may be hard to find and often require large down payments (50% or more).

• There’s also an Unrelated Business Income Tax (UBIT) consideration: if an IRA-owned property has a mortgage, the portion of income attributable to leverage could be taxable in the IRA. This can complicate ROI calculations.

• Why use retirement funds? The benefit is earning rental income tax-deferred (or tax-free in a Roth IRA) until you withdraw in retirement. If you have substantial IRA funds not needing immediate use, this could grow your nest egg faster than traditional investments, assuming the condo performs well.

• Caution: Because of the no personal use rule, this strategy is purely for investment return, not hybrid personal enjoyment. Also, all costs (HOA, repairs) must be paid from IRA funds, so you need sufficient cash in reserve in that account.

• Many experienced investors use self-directed retirement accounts to invest in real estate to diversify from stocks/bonds. A Paradise condo could be an interesting asset in a SDIRA, given the steady cash flow that can compound within the account.

Self-Management vs. Rental Management

We’ve touched on this in ROI, but to expand strategy-wise:

• On-site Management (or Full-Service Agency): Easiest route – you hand over the keys and they do everything. Brittain Resorts (Paradise’s on-site manager) will handle bookings (through their websites, Expedia, etc.), check-in/checkout, cleaning, and minor maintenance. You get a check (or direct deposit) each month for your share of the revenue. The trade-off is cost – around 40-50% of gross rental goes to them (plus maybe small fees). For many investors, especially those out-of-town or those wanting truly passive income, this is worth it. Also, on-site programs may drive higher occupancy in off-peak using their marketing clout (though with today’s tools, individual owners can also do well).

• Self-Management: This means you list the property on platforms like Airbnb, VRBO, Booking.com (as a host), and manage the bookings yourself. You’ll coordinate a cleaning service to turn over the unit between guests, handle guest communication, and deal with any issues (often by hiring local handymen as needed). The upside is you keep the full rental revenue minus minor fees, drastically improving profit. Our analysis showed a 1BR owner could net nearly double by self-managing versus using the rental program.

  • To succeed at self-management, you either need to be local or have a reliable team. Many remote owners hire a local co-host or property manager at ~10-20% of revenue to be on-call, which is still far less than 40-50%.

  • There are also hybrid options like using a service such as Vacasa or Evolve; these companies assist with marketing (and sometimes local help) for around 10-30% commission. That can lighten the load while still saving money relative to on-site.

  • The Paradise Resort HOA does not force you to use their rental program, so self-management is completely viable. And plenty of Paradise units are on Airbnb with great reviews, proving that independent owners can maintain the standard just fine.

• Strategy Tip: New investors might start with on-site management for a year to learn the ropes and gather data, then consider switching to self-management later to increase returns. Or vice versa – start self-managing to maximize income, and if it becomes too much work, switch to on-site.

• Owner-Guest Interaction: If self-managing, consider how you’ll provide the guest experience. You might invest in a smart lock or lockbox for guest entry since there’s no traditional front desk for your guests. Many self-managers also leave a welcome binder, starter toiletries, etc., to match what the resort provides to its managed guests.

• Quality Control: Self-managing gives you direct control over who rents (you can vet guests via profiles, set house rules) and how issues are handled. On-site will handle issues but you might not know if, say, a piece of furniture broke unless they tell you or you check the unit.

• In summary, self-management is an investment of time/effort to significantly boost your ROI. If you have the capability, it’s worth considering. Some investors even enjoy it and turn it into a side business (managing multiple condos). Others prefer the hands-off approach and accept a lower return for peace of mind. Paradise Resort gives you the flexibility to choose either path.

Combining Personal Enjoyment with Investment

Though not a pure investment strategy, it’s worth noting: Many owners use their Paradise condo as a vacation home part of the year and rent it out the rest. This hybrid approach can yield both monetary return and personal enjoyment:

• You can block out time for yourself (or friends/family) during slower months, or even snag a prime week for your own vacation (with the understanding that you forgo that rental income).

• Some investors plan to retire to Myrtle Beach eventually; buying a condo now that pays for itself until retirement (via rentals) and then keeping it for personal use later is a long-term strategy.

• While using the condo, you obviously won’t earn rent, but if your overall yearly numbers still cover expenses, you’re essentially getting a “free” vacation stay subsidized by renters. Just be sure to account for those owner usage weeks in your projections so you don’t overestimate income.

Refinancing or Equity Strategies

As the property appreciates, you could consider refinancing to pull out equity (while maintaining a rental). This is contingent on loan terms and condo financing environment, but a cash-out refi could allow you to invest in another property (maybe buy a second unit at Paradise or elsewhere) – effectively growing your portfolio using equity from appreciation. In mid-2020s, interest rates are higher, so refi might not make sense immediately, but it’s something to watch for if rates drop in the future.

Exit Strategy

Always invest with an exit in mind:

• Will you hold for the long term for cash flow?

• Are you aiming to sell in, say, 5-10 years for a profit (possibly doing a 1031 onward)?

• Being a condotel, Paradise units’ resale values are tied strongly to rental performance. The robust rental figures we’ve discussed (like 1BR $40k/yr) are a selling point – as evidenced by listings highlighting them. That should help liquidity; there’s usually investor demand for high-yield properties.

• Compare selling outright vs. 1031 exchange to continue deferring taxes. Some even plan to eventually do a 1031 into a fully retirement-suited property (like a single-family in a place they want to settle) or into a Delaware Statutory Trust (DST) for passive income.

To wrap up strategies: Paradise Resort condos are flexible investment vehicles. You can optimize for maximum cash flow (self-manage, minimize personal use), for minimal hassle (hire management, enjoy some personal time), for tax efficiency (1031 exchanges and retirement accounts), or some blend of these. The key is to align your strategy with your financial goals and lifestyle. A new investor might prioritize learning and gradually ramp up involvement, whereas an experienced investor might immediately implement cost-saving measures or portfolio techniques. The good news is that Paradise Resort’s strong baseline performance gives you a solid foundation whichever strategy you choose.

Comparisons with Similar Oceanfront Resorts

Myrtle Beach has a wide array of oceanfront condo-resorts. How does Paradise Resort stack up against some of the others, such as Ocean Reef Resort, Compass Cove, and Oceans One (all mentioned examples)? Each resort has its own profile, and understanding the differences can help investors gauge the relative value of Paradise Resort.

• Ocean Reef Resort (North Myrtle Beach, 7100 N Ocean Blvd): Ocean Reef is a family favorite with a water slide and a mix of hotel rooms and condos. It’s an older property (main tower built in the 1970s, North Tower in 2006) but has a water park amenity that draws crowds. In terms of rentals:

  • Income: Ocean Reef’s rental performance is good, but generally slightly lower per unit than Paradise’s for similar unit types. For example, one social media post noted a specific Ocean Reef condo had about $30,204 in gross rental income, though unit type wasn’t specified (likely a 1BR). This is below the ~$40k we see at Paradise for 1BRs. On the high end, Ocean Reef does have large 4BR condos; one 4BR was cited to gross $104,400/year and even up to $180k in a different case, thanks to on-site water amenities and size – but those units are expensive and rare.

  • HOA & Fees: Ocean Reef’s HOAs are in a similar ballpark (high and inclusive). It’s also a condotel for financing considerations.

  • Comparison: For an investor, Paradise vs Ocean Reef might come down to location (south end vs north end) and unit specifics. Ocean Reef’s water park can mean heavier wear-and-tear (lots of kids), and possibly higher maintenance. Paradise’s newer construction and strong income puts it at an advantage for mid-sized units. Unless you’re specifically drawn to Ocean Reef’s amenity set, Paradise often provides a better ROI on 1BR and 2BR units. Ocean Reef might edge Paradise in the super-large units category (due to those big gross figures for 4BRs), but again, cost to purchase is also higher there for such units.

• Compass Cove Resort (South Ocean Blvd, near Paradise): Compass Cove is actually just a few blocks south of Paradise Resort. It’s a massive complex with multiple towers (it’s older – dates back to 1980s for some sections, with renovations along the way). It has numerous pools, a water slide, etc.

  • Income: Compass Cove units tend to be cheaper to buy, but also make less income proportionally. One anecdote: “Compass Cove Resort: $159,900 purchase price and making $12,000 per year in PROFIT!”. This implies a relatively small unit (likely an efficiency or 1BR) that after all expenses nets $12k, which suggests maybe around $25k gross (if $12k is profit net of maybe $13k expenses). That’s decent, but a similarly priced Paradise unit (~$160k might get a small studio there) could potentially earn more. Also, a Compass Cove MLS listing showed $30,259 YTD Oct 2023 gross for a unit, which annualized maybe ~$36k – not far off Paradise levels, but that could be a 2BR.

  • HOA: Compass Cove’s HOA fees are also high and inclusive (similar structure: covers utilities, etc.). One of their towers had around $800/mo for 1BR, $1100+ for 2BR in recent listings.

  • Differences: Compass Cove’s scale is huge – more units competing for renters within the same resort. Paradise is a single tower, arguably easier to manage and sometimes guests prefer a smaller feel. However, Compass Cove’s brand and water features can draw a lot of guests too. For an investor, Paradise might achieve higher rental rates since it’s a newer building (2006 vs older), and many travelers prefer updated units. The ROI on a low-cost Compass Cove unit could be okay (as the IG quote indicates a $159k unit profiting $12k which is ~7.5% net yield, not bad), but Paradise’s mid-priced units profiting $20k on $240k (8%+) have an edge as calculated earlier.

  • Rental Demand: Both are on the south end near each other, so location demand is similar. If anything, Paradise is slightly closer to Market Common (upscale dining/shopping) and the airport, which some guests appreciate.

• Oceans One Resort (Downtown Boardwalk area): Oceans One is a stylish, modern glass tower built around 2008, located right near the Myrtle Beach Boardwalk and 2nd Ave Pier. It’s known for contemporary design and panoramic views.

  • Income: Oceans One units generally perform very well. The downtown location fetches high summer rates. A YouTube feature mentioned an Oceans One unit grossing $109,248 (likely a large 3BR penthouse). Its 1BR and 2BR units likely earn comparable to Paradise’s, if not more, because they’re in the heart of downtown action. However, Oceans One condos are also pricier (mid $200s for 1BR, $300–400k for 2BR), so the cap rate might be similar.

  • HOA: Similar high inclusive HOA structure.

  • Guest profile: Oceans One gets a lot of young groups and also families who want to walk to the SkyWheel and boardwalk. It can be a bit noisy given the location. Paradise, by contrast, is a bit quieter area (2 miles south of the boardwalk).

  • Comparing ROI: If an investor is deciding between Oceans One and Paradise Resort: Paradise often has a lower cost per unit and still strong income, yielding a potentially better ROI percentage. Oceans One might have a slight edge in absolute rent for a given size (especially for modern interiors), but you pay for it upfront. Both allow self-management etc. It might come down to personal preference: downtown vs a bit removed, and the aesthetic of the building. Oceans One and Paradise are both top-tier in their respective sub-markets (downtown vs south end).

• Other Resorts (briefly):

  • Ocean Reef (North) – we discussed.

  • Caribbean Resort (another north oceanfront with water amenities) – similar to Ocean Reef in profile.

  • Dunes Village (north MB) – famous indoor waterpark, 1BRs and 2BRs there can gross extremely high due to waterpark attraction (some 1BR there reportedly near $50k and 3BR over $80k). But Dunes Village units are quite expensive and HOA is also high; cap rates end up not far off Paradise’s, interestingly, because you pay for that premium.

  • Bay View Resort (downtown) – closer in class to Paradise, but smaller units; Paradise’s income might be better relative to price.

  • Oceans One – already covered, high performer, high cost.

  • Compass Cove – covered, mid performer, lower cost, possibly lower net yields.

  • Grand Atlantic (just a block south of Paradise) – similar age building to Paradise, but fewer amenities; Paradise might actually outperform Grand Atlantic on rentals because Brittain Resorts manages Paradise and drives occupancy.

  • Oceans One vs Paradise vs Ocean Reef Summary: An investor looking for a solid oceanfront rental should note that Paradise Resort’s 1BR units had one of the highest average gross incomes in its category in recent years. That makes it stand out. It’s not the absolute highest grossing resort (some with waterparks take that crown), but those others often require more capital. In the mid-price oceanfront condo segment, Paradise is a top contender for ROI.

• Comparative ROI Snapshot:

  • A Paradise 1BR (~$240k) gross ~$40k (as we know) – ~9% cap if self-managed (from earlier calc).

  • An Ocean Reef 1BR (~$200k) gross ~$30k – maybe 7-8% cap self-managed.

  • A Compass Cove eff/1BR (~$160k) gross ~$25k – perhaps 7-8% cap as well, but need to confirm expenses (some older buildings might have lower HOA but I suspect CC’s HOA is still high due to multiple pools). The IG said $12k profit on $159k, which sounds ~7.5% net, aligning with that.

  • An Oceans One 1BR (~$250k) gross ~$40k – likely similar 8-9% if managed well, so Oceans One and Paradise might be neck-and-neck ROI wise; difference is Oceans One is downtown and flashier, Paradise is a tad cheaper and slightly further from downtown.

• Resale and Demand: Paradise Resort’s solid rental stats make it appealing to other investors, which supports resale value. Resorts like Ocean Reef and Compass Cove also sell on rental potential, but Paradise being newer can attract buyers who don’t want an older building. On the other hand, Oceans One attracts those who want modern style and location. It’s good for an investor to keep tabs on these peers: for instance, if one resort starts a major renovation (or gets a new amenity) that could shift some rental demand in the city.

Bottom line: Paradise Resort holds its own and often excels when compared to similar oceanfront condo-resorts in Myrtle Beach. For someone considering an investment:

• If you want slightly lower price point and still strong returns, Paradise outshines many older resorts like Compass Cove.

• If you value modern construction and reliable performance, Paradise is right up there with Oceans One and other newer builds.

• The differences in gross income can be significant (e.g., $10k+ more per year for Paradise 1BR vs some peers), which over time can far outweigh a slight price difference. That makes Paradise Resort a very compelling choice among its competition for maximizing decision-useful outcomes – i.e., profit.

Conclusion and Key Takeaways

Paradise Resort in Myrtle Beach offers a compelling investment case for short-term rental investors, whether you’re just starting out or adding to an existing portfolio. The 2023–2024 data highlights its strong performance: high gross incomes across all unit types, robust occupancy in peak seasons, and flexibility for owners in how to manage and utilize their units.

Key takeaways and actionable insights:

• Strong Income by Unit Type: Studios, 1BRs, 2BRs, and 3BRs at Paradise all generated solid rental income in 2023–24. For example, 1-bedroom condos averaged about $40k gross annually, which is among the highest in Myrtle Beach for that size category. Action: If you’re a new investor, targeting a 1BR unit could provide an optimal balance of affordability and income. If you have more capital, a 2BR or 3BR can yield higher total income, just be mindful of the seasonal swings.

• Seasonal Strategy is Crucial: Recognize that summer will make or break your year. Paradise Resort excels in summer bookings (often 90%+ occupancy). Action: Plan your finances to cover the off-season. Use tactics like monthly winter rentals (Paradise’s snowbird program shows 3BRs at ~$1,650/mo in winter) to at least pay the HOA and taxes during slow months. Adjust rates and minimum stays proactively around events and shoulder seasons to capture available demand.

• HOA Fees – High but Comprehensive: The HOA may seem high, but remember it covers utilities and amenities. Action: Incorporate the HOA cost into your ROI calculations from the start (we did, and found net yields can still be very attractive). Compare net figures with other properties – often Paradise’s higher income offsets the higher HOA. Also, stay involved in the HOA community to ensure funds are well-managed (a well-run HOA protects your property value and keeps special assessments at bay).

• Maximize ROI through Management Choices: There’s a clear opportunity to boost returns by self-managing or using cost-effective management. While the on-site program is convenient, it could cut your profit roughly in half. Action: If you have the capability, attempt self-management for a trial period. You could potentially move from a ~5% cap (with full service) to ~9% cap (self-managed) on a 1BR as our analysis showed. That’s the difference between barely breaking even with a mortgage and enjoying solid positive cash flow. If self-management is daunting, consider third-party managers who charge less than the on-site cut – even a small increase in net can improve your cash-on-cash return.

• Leverage and Financing: With 20-25% down financing, Paradise Resort condos can still produce positive cash flow if managed efficiently. Action: Shop around for lenders experienced with condotel loans (local banks or mortgage brokers often have portfolio loan options). If rates are high now, you can aim to refinance later if rates drop, which would juice your cash flow further. Meanwhile, lock in that rental income – it’s somewhat inflation-hedged, as you can raise rates over time as the market allows.

• Guest Experience = Profit: The strong guest reviews at Paradise translate to sustained demand. Action: Keep your unit in top shape and pay attention to guest feedback. Something as simple as updating decor or adding better balcony furniture can earn you a star in a review, which can lead to more bookings. In competitive shoulder seasons, properties with the best reviews often win bookings. Paradise already has an advantage with location and amenities; reinforce that with a great unit and host experience.

• Use Advanced Strategies: Seasoned investors can utilize strategies like 1031 exchanges to scale up without tax friction, or even employ retirement accounts for a tax-advantaged hold (if personal use isn’t a factor). Action: Consult with a CPA or real estate tax expert to plan a 1031 exchange if you have appreciated property equity – rolling it into a high-yield Paradise condo could significantly boost your cash flow. Or, if you have idle IRA funds, explore a self-directed IRA purchase of a condo (just heed all IRS rules).

• Know the Competition: Understanding comparable resorts helps in both acquisition and operation. We saw that Paradise’s 1BR out-earned Ocean Reef’s by ~40% and that a Compass Cove unit can be a lower-priced alternative but with lower profit. Action: When shopping, compare not just list prices but rental histories of each option. Paradise often shines in those comparisons, which is why it’s highlighted by realtors (e.g., being called a “high income” property). When marketing your rental, be aware of the wider market – e.g., if a new water park opens at a neighbor resort, consider how to keep your property competitive (price, amenities in unit, etc.).

In conclusion, Paradise Resort offers a blend of high rental income potential, reasonable purchase prices, and management flexibility that make it highly attractive for real estate investors focusing on short-term rentals. Its performance in 2023–2024 demonstrates resilience and profitability, even as the market moderates from the unusually strong post-pandemic travel boom. Investors who do their homework, employ savvy management (either by themselves or via trusted partners), and treat this as a true business can reap substantial rewards.

Whether you’re a new investor looking to make your first beach rental purchase or an experienced one aiming to optimize your portfolio, Paradise Resort is worth serious consideration. With the right approach, your condo can truly live up to its name – becoming a “paradise” of both enjoyment and profitable returns. By leveraging current data and best practices, you can make an informed, decision-useful investment in Paradise Resort that pays dividends for years to come.

Sources: Recent MLS and rental data for Paradise Resort and comparable properties were used in this analysis, including gross rental income figures, news on Myrtle Beach occupancy trends, and HOA inclusion details. These figures support the financial projections and comparisons discussed. Always verify current numbers and consult local experts when making an investment decision.

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.