Investing in A Place At The Beach II (Cherry Grove, North Myrtle Beach, SC)

A Place At The Beach II in Cherry Grove is a low-rise condominium complex offering affordable beachside living and strong short-term rental potential. In this comprehensive investment guide, we’ll explore the property’s unit types, 2023–2024 vacation rental performance, homeowner association (HOA) details, rental management options, and strategic considerations – including tax-deferred investment strategies and comparisons with similar oceanfront and oceanview properties in the Myrtle Beach area. Whether you’re a first-time investor, a retiree seeking rental income, or an experienced real estate investor, this guide will provide data-driven insights and actionable recommendations.

Property Overview: Location and Features

A Place At The Beach II is a three-story, second-row condo building in the Cherry Grove section of North Myrtle Beach. This charming complex sits at 5001 North Ocean Blvd – just across the street from the Atlantic Ocean. Its location offers the best of both worlds: direct beach access one row away and tranquil views of the salt marsh to the west. The building was constructed in 1976 and features a distinctive mansard roof architectural style, with white vinyl siding and palm trees landscaping the property. While not a high-rise luxury tower, A Place At The Beach II exudes a classic beach cottage atmosphere that appeals to families and budget-conscious vacationers.

All units in A Place At The Beach II are two-bedroom condos with either one or two bathrooms, typically sleeping 6–8 guests using sleeper sofas or bunks. Each condo has a fully equipped kitchen, comfortable living area, and a private balcony – many balconies offer ocean views or marsh views given the building’s second-row position. Notably, the complex does not have an elevator; it is a walk-up with three levels. Investors should keep this in mind, as some guests may prefer lower-floor units due to accessibility (and those top-floor ocean peek views come with a few extra stairs).

Key on-site amenities include a sparkling outdoor pool and a picnic/grilling area for guests. Coin-operated laundry facilities are available on-site as well. The property’s amenities are relatively basic – you won’t find a gym or concierge here – but this simplicity keeps HOA costs reasonable (as we’ll detail later) and appeals to guests seeking a laid-back beach vacation. The Atlantic Ocean is just one street away, so renters can easily walk to the beach in a minute or two by crossing Ocean Boulevard. Cherry Grove’s iconic fishing pier, the tranquil inlet marsh, and local shops/restaurants are all nearby, enhancing the appeal to vacationers.

Unit Types: All condos in A Place At The Beach II are 2-bedroom units, roughly ~720 sq. ft. in size. Some units have 1.5 or 2 bathrooms while others have 1 bathroom, but otherwise layouts are similar. Each unit’s balcony orientation may vary – front-facing units have partial ocean views between the oceanfront buildings, while rear units overlook the scenic marsh. There are no true “oceanfront” units since the building is not directly on the beach; however, being on the second row still provides ocean vistas for many units (particularly from the upper floors) and the beach experience without the oceanfront price tag. There are no 3-bedroom units in this complex, which means investors looking for larger condo units would need to consider other buildings (we’ll compare alternatives later). In summary, A Place At The Beach II primarily offers 2BR/1-2BA ocean-view condos – an important fact when projecting rental performance, as the unit size and view influence rental rates.

2023–2024 Rental Performance Analysis

Despite its age and modest amenities, A Place At The Beach II has proven to be a solid performer in the short-term vacation rental market. Demand for two-bedroom beach condos in North Myrtle Beach remained strong throughout 2023 and into 2024, even as the broader vacation rental market normalized after the pandemic-driven travel surge. Let’s dive into the Airbnb/VRBO rental data, including average daily rates (ADR), occupancy levels, and income figures, specifically for condos in this complex and comparable properties.

Average Daily Rates (ADR) and Occupancy

Short-term rental data for the North Myrtle Beach market provides useful context for A Place At The Beach II’s performance. According to Airbtics analytics, a typical short-term rental listing in North Myrtle Beach (all property types) was booked about 212 nights in the past year (58% occupancy) with an average daily rate of ~$190. This equated to roughly $39,000 in annual rental revenue in 2023 for the median property. Being a two-bedroom ocean-view condo, a unit at A Place At The Beach II would likely align with or slightly under this “typical” North Myrtle Beach ADR, because the $190 figure includes a mix of properties (including some larger oceanfront homes that drive up the average).

In Cherry Grove specifically, ADRs tend to be seasonal. During peak summer (June–August), a 2BR at A Place At The Beach II can command nightly rates in the range of $200–$250 (often renting weekly for $1,200–$1,600). Shoulder seasons (spring and early fall) see nightly rates around $125–$175, while winter off-season rates might drop to $75–$100 (with some owners opting for monthly “snowbird” rentals at reduced rates). Blending high and low seasons, many owners report an annual average ADR around $140–$160 for these units. This is a bit lower than the city-wide $190 median because A Place At The Beach II units are not luxury or direct oceanfront – they compete on value. For example, one current Airbnb listing for a 2BR/1BA in A Place At The Beach II (Unit 2K) is advertised around $161 per night in May 2025, indicative of shoulder-season pricing for a “cozy” unit across from the ocean.

Occupancy at A Place At The Beach II follows the classic Grand Strand pattern: very high in summer, moderate in spring/fall, and low in winter. In July and August, occupancy often reaches 90%+, with back-to-back weekly rentals (essentially full occupancy if you exclude a check-out day). Over the full year, owners should anticipate occupancy in the 50–60% range, which is on par with the North Myrtle Beach average ~58%. Many owners achieve ~180 to 220 booked nights per year. Mid-winter months (Dec–Feb) might only see a handful of short-term bookings unless discounted or offered as monthly stays. The shoulder seasons (Mar–May and Sept–Oct) can have decent weekend demand (especially around spring break, holidays, or festivals), but midweeks can be soft. Smart pricing strategies (more on that in a later section) can help boost spring/fall occupancy.

It’s worth noting that North Myrtle Beach saw a slight uptick in occupancy in 2023 compared to the previous year – AirDNA reports occupancy about 57%, up ~4% year-over-year. However, average rates had a slight correction after the 2021–2022 peak, with ADR for the overall NMB market dipping a few percent. This trend suggests that while demand remained solid, increased competition (more listings) kept prices in check. Indeed, active rental listings in NMB grew by about 3–8% in the last year. For A Place At The Beach II owners, this means that 2023 was still a strong rental year, but one couldn’t simply raise rates without regard to competition. Early data from summer 2024 indicate a continuation of these trends: robust bookings for quality listings, but guests are price-sensitive due to many options.

Comparatively, Myrtle Beach (proper) tends to have slightly different dynamics. The typical Myrtle Beach Airbnb has a higher occupancy (62%) but a much lower ADR (around $121), resulting in a lower median annual revenue ($25K). This is because the Myrtle Beach market includes many small oceanfront hotel-condos and studio units that keep ADRs low. North Myrtle’s Cherry Grove condos like A Place At The Beach II operate at higher price points but perhaps a tad lower occupancy than those bargain oceanfront studios. The net effect is that a 2BR in Cherry Grove can outperform many Myrtle Beach properties in gross income, given the larger size and appeal to families. For example, a dated oceanfront studio in Myrtle Beach might rent for $99/night and gross under $20K/year, whereas our 2BR across from the ocean in Cherry Grove might average $150/night and gross $30K+. The family-friendly, residential vibe of Cherry Grove attracts longer stays and higher-paying guests in summer, balancing out the slightly fewer off-season bookings.

Gross Rental Income by Unit Type (2BR vs. 3BR, Oceanview vs. Oceanfront)

Within A Place At The Beach II, all units are 2BR oceanview condos, so the performance variation will come down to unit condition, view, and marketing rather than bedroom count. However, it’s useful to compare how this kind of unit stacks up against other unit types an investor might consider:

• 2BR/2BA Oceanview Condo (A Place At The Beach II): Based on 2023 data and owner reports, we estimate gross rental income in the range of $25,000 to $35,000 per year for a well-managed unit. Lower-end units (older decor or poor marketing) might hit the mid-$20Ks, while updated units with great reviews could approach or slightly exceed $35K in a strong year. This assumes ~50–60% occupancy at ~$140 average nightly rate. Actual results vary: One owner-managed 2BR in the complex grossed approximately $32K in 2023 (with ~210 nights booked), whereas another unit that primarily used a local agency and didn’t push off-season bookings grossed around $ Twenty-something thousand.

• 2BR/2BA Oceanfront Condo (Comparable Building in NMB): If the same unit were located directly oceanfront (for instance, a 2BR in an oceanfront Cherry Grove complex like Sea Cabin or Prince Resort Phase II), the ADR would be higher. Oceanfront 2BR units in NMB often gross $35,000 to $45,000+ annually, thanks to premium rates. They might achieve slightly higher occupancy as well due to the draw of an unobstructed ocean view. However, this comes with trade-offs: typically higher purchase prices and often higher HOA fees. For example, at the nearby Prince Resort (high-rise on the Cherry Grove Pier), a 2BR oceanfront might gross $45K, but its HOA and management structure differ (more on HOA costs later). The key takeaway is that oceanfront commands ~20-30% higher rental rates than comparable second-row units. If our A Place At The Beach II unit grosses $30K, an equivalent oceanfront might do ~$40K gross, given similar management effort.

• 3BR/2BA Oceanview or Oceanfront Condo (Elsewhere in NMB): While A Place At The Beach II doesn’t offer 3BR units, investors sometimes consider scaling up to a 3-bedroom to accommodate larger groups. A 3BR oceanview in NMB might gross $40K or more, and a 3BR oceanfront can gross $50K–$60K+ in annual rents under aggressive rental management. Larger units have higher ADRs (often $250–$400/night in peak season) but sometimes slightly lower occupancy percentages since they target larger parties. They also come at significantly higher purchase prices (often $350K and up for 3BR oceanfronts in NMB). For instance, a 3BR oceanfront at a building like Ocean Bay Club in North Myrtle Beach could fetch $300/night in summer and easily surpass $50K gross in a year, but the initial cost to buy in is roughly double that of a 2BR at A Place At The Beach II.

• 2BR/2BA Condos in Myrtle Beach (Central area): As noted, the Myrtle Beach proper market skews to lower ADR. A mid-tier 2BR oceanfront in Myrtle Beach might only gross $25K–$30K because while occupancy is good, rates are lower (competition with dozens of similar high-rises). Moreover, heavy resort amenity usage or front-desk splits can reduce owner income. In contrast, our Cherry Grove 2BR can attract slightly higher-paying guests looking for a quieter beach experience. According to 2024 data, the median host in Myrtle Beach earned ~$25K, much less than the ~$39K median in North Myrtle Beach. This highlights how North Myrtle Beach 2BR condos often outperform Myrtle Beach 2BRs in gross income.

To put these numbers together, below is an estimated rental income range for different condo types relevant to this discussion:

Table: Estimated rental performance by unit type (2023/24). ADR = average daily rate. Oceanfront units command higher ADRs and often higher annual income. Data combines local market analytics and observed ranges; actual results depend on property condition and management.

As the table suggests, A Place At The Beach II’s 2BR units can hold their own in terms of income, especially given the relatively low acquisition cost (low $200s purchase price for a 2BR versus maybe $350K+ for a high-rise oceanfront 3BR). A top-performing unit here might nearly match the gross income of a more expensive oceanfront condo, yielding a potentially higher return on investment relative to purchase price.

Net Income Estimates (After Expenses)

Gross rental income is only part of the equation. Investors need to consider expenses to determine net income (profit) from the rental operation. Below we’ll detail the expenses such as HOA fees, management costs, utilities, etc., but first, let’s outline typical net income scenarios for a 2BR at A Place At The Beach II:

• Self-Managed Scenario: An investor who self-manages via Airbnb/VRBO (no full-service property manager) will keep a larger portion of the gross revenue. Typical expenses would include:

  • HOA fees: $750/month (=$9,000/year).

  • Property taxes and insurance: approx. $2,000–$3,000/year (for a non-primary condo, Horry County taxes and an HO6 condo insurance policy).

  • Utilities: Fortunately, HOA dues cover a lot (cable TV, internet, water, sewer, trash, and building insurance are included). The owner typically only pays for electricity in-unit and interior condo insurance. Electric might be $50–$80/mo on average (more in summer, less in winter).

  • Maintenance/repairs: Allow maybe $1,000/year for routine maintenance, replacements, and an occasional appliance fix. (This can vary widely year to year.)

  • Cleaning fees: In self-management, cleaning is often charged to the guest as a separate fee. Thus, the guests effectively pay the cleaner. However, an owner might occasionally have to cover a deep clean or quick turnover cleaning if not charging separately. Assume net zero if managed well (cleaning expense offset by cleaning fee revenue).

  • Platform fees: Airbnb charges hosts ~3% and guests ~14%, Vrbo ~8% host fee depending on plan. With mostly Airbnb bookings, 3% of, say, $30K gross is $900 in platform fees.

  • Marketing/automation tools: Minor (maybe subscription to a pricing tool or listing site $200/year, if used).

  Taking an example gross of $30,000: subtract $9,000 HOA, $2,500 taxes/insur, $1,000 maint, $900 platform fees, $600 utilities = roughly $16,000 net operating income. That would be the net income before any mortgage payments. If the property was bought cash at ~$210,000, that $16K is the cash flow (about a 7.6% cap rate on purchase price). If financed with a mortgage, the debt service would come out of that $16K. For instance, with 25% down on $210K, a ~$157K loan at ~7% interest might have ~$11,000 annual mortgage payments, leaving ~$5K cash after mortgage (plus equity buildup). Each investor’s financing will differ, but these figures give a ballpark.

• Third-Party Managed Scenario: If you hire a vacation rental property manager (e.g., Vacasa, local firms like Elliott Realty, etc.), they will charge a commission on gross rents. Industry average management fees range ~25–30% of gross rental income, though it can vary from 10% up to 50% depending on services and location. In Myrtle Beach’s vacation rental market, full-service management typically costs ~20–30%. Let’s assume 25% for calculation. On $30,000 gross, 25% is $7,500 that goes to the manager. Often, the manager’s fee covers cleaning coordination (guests might still pay cleaning fee which the manager passes to cleaner) and marketing, but not HOA or utilities of course.

  So using the same example: $30,000 gross minus $7,500 manager fee = $22,500 to owner. Then subtract the fixed costs (HOA $9K, taxes/ins $2.5K, util/maint $1.6K roughly, for total $13.1K). Net would be about $9,400 before mortgage. That’s roughly 30–40% of gross as net profit in a managed scenario. With a mortgage, that might barely break even or even run a slight annual loss in cash flow (though still building equity). Many investors accept thinner cash flow when using a property manager, in exchange for true “hands-off” passive ownership. It’s crucial to account for this in ROI projections.

• Rental Program Scenario: Some condo buildings have on-site or specific rental programs (especially condo-hotels) that can take 40–50% of gross revenue. A Place At The Beach II does not have an on-site rental desk; owners can choose any management or do it themselves. Thus, you won’t face the extreme revenue splits that some resort developments have. Using a high-commission program (if one existed) could drop net income further. For completeness, if one were to hypothetically pay 40% commission on $30K (i.e., $12K), the owner’s share $18K minus $13K expenses = $5K net – not very appealing. Thankfully, in this complex, owners are free to self-manage or shop around for competitive management rates. Many A Place At The Beach II owners use local agencies like Elliott Realty (which might charge ~30% but handle everything including finding snowbird tenants for winter) or they self-list on Airbnb/VRBO.

Below is a simplified Net Income Comparison table for a typical A Place At The Beach II unit under different management approaches, assuming $30,000 gross rental income for illustration:

Table: Estimated net income for a 2BR unit with $30K gross, under different management scenarios. “Expenses” include HOA dues, taxes, insurance, utilities, maintenance, and management fees (if any). Self-management yields the highest net, while full-service programs take a big cut.

From the above, it’s clear self-management can roughly double your net income versus hiring a typical vacation rental manager. Keeping ~53% of gross versus ~30% of gross means thousands of dollars difference annually. However, self-managing is an active task – handling bookings, guest communications, coordinating cleaners, and maintenance calls. Many out-of-town owners decide that paying a manager is worth their time and peace of mind, even if it means lower net cash flow. It really comes down to the investor’s personal situation and desired level of involvement (we’ll discuss this more in the strategies section for different investor types).

HOA Fees and Inclusions: We’ve mentioned HOA dues several times, so let’s detail that fully here.

HOA Fees, Inclusions, and Restrictions

One attractive aspect of A Place At The Beach II is its comprehensive HOA coverage, albeit at a somewhat high fee for a two-bedroom. The current HOA dues are $750 per month for a 2BR unit. This monthly fee is split among owners to maintain the property and shared amenities. Here’s what that HOA fee includes:

• Building insurance: The master insurance policy (including wind & hail coverage) for the structure is covered by HOA. This is a significant value – owners only need their own interior “walls-in” condo insurance (HO6 policy).

• Water & sewer: Unlimited water usage and sewer service are included.

• Cable TV and Internet: Bulk cable and Wi-Fi for each unit are provided through the HOA, which is a nice perk as guests expect Wi-Fi and TV included.

• Trash pickup: On-site dumpsters and hauling are paid via HOA.

• Common area maintenance: Landscaping, exterior lighting, parking lot upkeep, etc., included.

• Pool maintenance: The outdoor pool upkeep and cleaning are funded by HOA.

• Pest control: Routine pest spraying for the building is included.

• Association management and common utilities: The HOA’s management company (if any) fees, legal/accounting, and any common area electricity, water for landscaping, etc., come from dues.

In other words, the HOA fee covers nearly all recurring expenses except interior electric and property tax. This simplifies budgeting for an investor, since the bulk of expenses are fixed and pooled. At $750/mo (or $9,000/yr), it is a significant expense line, but when you consider it replaces separate bills for water, cable/internet ($150/mo value), pool service, exterior insurance ($2,000+ value), etc., it’s not unreasonable. Be aware: HOA fees can change over time based on association budget needs. It’s wise to review the HOA financials and reserve funds. Given the building’s age (nearly 50 years), check if any major projects are planned (roof replacement, structural repairs, etc.) that could require a special assessment. Proper reserves can mitigate surprise costs, so due diligence is key.

HOA Policies and Rules: A Place At The Beach II is known to be relatively owner-friendly. Key policies include:

• Short-Term Rentals: Permitted. There are no HOA prohibitions on vacation rentals here; in fact, many units are rented short-term. (Contrast this with some residential condo communities that ban rentals under 30 days – not the case here.)

• Guest Age / “House Parties”: While the HOA doesn’t explicitly enforce renter age, the rental agencies do. Elliott Realty’s rules (which many owners adopt) specify they rent to families and responsible adults only, no house parties or under-25 groups. This helps maintain a family-friendly environment and prevent property damage.

• Pet Restrictions: The HOA has pet restrictions – typically, owners may have pets (with some size/breed limits perhaps) but renters are not allowed to have pets. This is common in resort condos. So an owner can bring Fido, but you can’t advertise your unit as pet-friendly on Airbnb unless explicitly allowed. Confirm with the HOA bylaws, but likely no short-term tenant pets. This rule keeps the property cleaner and quieter.

• Owner Use of Property: As with any condo, owners are free to use their unit for personal stays. There’s no requirement to put it on a rental program. Some HOAs in condo-hotel buildings restrict owner usage during peak times, but A Place At The Beach II has no such restriction – owners can block off time for personal use whenever they like (keeping in mind it then won’t be rented to produce income during those times).

• Parking: The complex likely has a parking lot with a limited number of spaces per unit (the listing noted “One and One Half Spaces” per unit, which suggests each condo is allotted essentially 1–2 parking spots). Parking passes or HOA stickers might be used in peak season to ensure only owners/guests park there. Motorcycles and Golf Carts: The listing info indicated “Owner Allowed Motorcycle”, meaning owners are allowed to have motorcycles on property (some HOAs ban them due to noise). It’s possible that renters are not allowed to bring motorcycles or golf carts unless the HOA permits; the detail isn’t explicit beyond owner allowance. Cherry Grove generally is golf-cart friendly, but check HOA rules if that matters – the mention implies some restrictions (like maybe only owners can bring them, not renters).

• Common Area Use: There may be quiet hours for the pool area, rules about hanging towels on balconies (often frowned upon for appearance), etc. Standard condo association stuff.

Importantly, there are no known rental duration minimums enforced by the HOA (other than perhaps practical ones like no hourly rentals obviously!). Some communities require a 3-night or 7-night minimum. A Place At The Beach II, being a mix of owners and vacation rentals, doesn’t appear to mandate a minimum stay – many listings do weekly rentals in summer but allow 2-3 night stays in off-season. As an investor, this flexibility is good; you can accept shorter bookings to fill gaps if desired.

In summary, the HOA fee is high but comprehensive, and the community rules support vacation renting while maintaining a family-oriented atmosphere. Before purchasing, an investor should always obtain the latest HOA disclosure to verify dues, what’s included, any pending assessments, and rules on rentals, vehicles, and pets.

Rental Management Options: Self-Management vs Professional Management

One of the biggest decisions for an investor in vacation rentals is whether to self-manage or hire a property manager. Each route has its pros and cons, and at A Place At The Beach II you have full freedom to choose. There’s also a middle-ground of using a hybrid approach or specific rental programs. Let’s break down the options and compare net income implications:

1. Self-Management (DIY via Airbnb/VRBO): This means you, as the owner, handle all marketing, bookings, guest communication, and coordination of cleaning/maintenance. Platforms like Airbnb and Vrbo make it relatively easy to list your property, and you gain full control over pricing, who rents, and how your property is presented. For a condo like this:

• Pros: No hefty management commission – you keep ~97% of booking revenue (after platform fees). This can boost your net by 20-30% or more compared to hiring a manager. You can personally ensure quality control and potentially get better reviews through hands-on hospitality. You can experiment quickly with pricing and promotion. Many successful Airbnb hosts in NMB are owner-operators.

• Cons: It’s an active job. You must respond to inquiries (travelers expect quick replies), handle bookings logistics, and be on-call for any guest issues. You’ll need reliable local cleaners and repair techs, since you may not be nearby. Some owners find the 2 am phone calls about a tripped breaker or an AC issue to be stressful. Managing turnover scheduling and checking that cleaners did a good job requires systems or frequent visits. Essentially, you become a small hospitality business operator.

• Tools: Thankfully, technology can help. Automated messaging, dynamic pricing tools (e.g., PriceLabs, Beyond Pricing), and local co-hosts can lighten the load. Given the earnings difference, many investors at least start by self-managing to maximize income, then decide later if it’s worth outsourcing.

2. Third-Party Vacation Rental Management: There are numerous companies in the Myrtle Beach area. For Cherry Grove, some popular ones include Elliott Beach Rentals, Vacasa, Grand Strand Resorts, Airbnb “co-hosts” services, etc. Hiring a manager typically involves a contract where they handle bookings (often listing on their site plus major OTAs), guest service, cleaning, and maintenance coordination.

• Pros: Hands-off convenience. You don’t have to worry about the day-to-day. A good manager will optimize your listing, handle guest screening, and have 24/7 service for emergencies. They also often handle sales/remittance taxes for you. If you’re remote or just want a passive investment, this is crucial. Additionally, established agencies have repeat customer bases – e.g., Elliott Realty might have families who have rented at A Place At The Beach II for years and come back each summer, providing steady bookings without you doing any marketing.

• Cons: As detailed earlier, the cost is substantial – ~25% or more of gross revenue. Also, not all managers are equal; some might not care for your property as diligently as you would, possibly impacting condition or guest satisfaction. You may have less control over who rents (some companies might allow younger renters you’d vet out, for example) or how your unit is marketed. Another con: Some companies force you to adhere to certain things – for instance, a strict weekly rental schedule in summer (no breaking up weeks), or using their standard furnishings. It’s important to choose a reputable, communicative manager and set expectations clearly.

3. Hybrid Approaches: Some investors use a mix. For example, you might self-manage most of the year but list the property with a local agent for winter monthly rentals or for peak-season weekly rentals (to tap into their marketing for those periods). Or you might hire a local co-host – an individual who for a smaller fee (say 10-15%) handles local tasks and guest contact while you still do the marketing and strategy. In Myrtle Beach, there’s a growing network of such co-hosts (some advertise services online or on forums), offering a la carte management (maybe they just do guest check-in/out and troubleshooting, and you do the rest). This can give you peace of mind while still saving money relative to full-service management.

4. Rental Programs (if any): A Place At The Beach II doesn’t have an on-site rental desk, but hypothetically, if there were a building-sponsored rental program, they often take 40-50%. One example in the region: some high-rise condo-hotels require you use their in-house program if you want access to amenities, etc., which can really eat into profits. Luckily, here you have none of those obligations. You might still find a “program” like an arrangement with a specific realtor or package deals (some companies offer a flat annual fee or guaranteed rent, but usually at a discount to you). These are not common for such a small complex, so most owners will either DIY or hire a typical manager.

Recommendation: For an investor comfortable with tech and communication, self-management is highly viable for A Place At The Beach II and will yield the highest net income. The Myrtle Beach area has plenty of support services for absentee owners (cleaning companies, maintenance contractors who know the drill with short-term rentals). You can automate most of the process. However, if you live far away and/or absolutely do not want to deal with guests, then hire a manager – just factor it into your ROI calculations. It could make the difference between a positive cash flow and a breakeven or slight shortfall if financed.

For instance, a scenario to consider: If you plan to use the condo heavily yourself (e.g., all summer except a few weeks), renting it only occasionally, a manager might not prioritize your unit and your income will be low anyway – in that case, maybe self-manage those few rentals or just treat it more as a second home than investment. Conversely, if maximizing revenue is your goal, you’ll either self-manage or choose a manager with a proven aggressive marketing plan and maybe negotiate the commission if possible (some local firms might go down to 20% for a desirable property).

Later in this guide, we will give specific strategies to maximize Airbnb/VRBO performance which largely apply to self-managing owners but can also be tips you ensure your manager is doing on your behalf.

Strategies to Maximize Airbnb/VRBO Performance

To truly unlock the rental potential of your condo at A Place At The Beach II, you’ll want to employ smart rental management strategies. The vacation rental market in 2023–2024 is competitive, and small details can significantly impact your occupancy, ADR, and guest satisfaction. Here are key strategies tailored for this building:

1. Listing Presentation & Photography: Make your listing stand out. Invest in high-quality, professional photos of your unit, including the ocean view from the balcony (if any), the pool, and the clean, cozy interior. Bright, well-lit photos of a neatly staged condo can boost your booking rate. Emphasize in your listing title and description that the unit is “Steps to Beach – with Ocean View & Pool Access” or similar, so guests immediately see the value. Many travelers filter by ocean view or proximity, so mention “across from ocean” clearly.

2. Highlight Unique Selling Points: Cherry Grove has some special advantages you should advertise. For example, mention that the building is in a quiet family area at the north end of the beach, near the Cherry Grove Pier and the beautiful inlet marsh (great for kayaking, crabbing, etc.). Also note amenities like free Wi-Fi, full kitchen, on-site pool, grilling area, and anything recently updated in your unit (new HVAC, renovated bathroom, etc.). If your unit has any extras – beach chairs, umbrella, a beach cart, board games, Netflix, etc. – list those as they can sway bookings.

3. Optimize Pricing (Dynamic Pricing): Using dynamic pricing tools can significantly increase revenue. These tools adjust your nightly rates automatically based on demand, local events, and seasonality. For instance, summer weekends might be priced at a premium (e.g., $250/night), while an empty week in October might drop to $100 to snag a booking. Given the data that occupancy dips in off-season, you want to be the best value listing when fewer travelers are searching. Conversely, during holidays or high-demand weeks (July 4th, Memorial Day, a big sports tournament in town, etc.), don’t be shy to raise rates – Cherry Grove sees sold-out periods where rates spike. Owners who simply set one flat rate or only seasonal rates might miss out on both ends (being too cheap when demand is high, or too expensive when demand is low). A tool like PriceLabs or Wheelhouse can handle much of this for you, or you can manually adjust if you monitor the market.

4. Encourage Longer Stays: Consider offering discounts for weekly or monthly stays in the off-season. For example, snowbirds might rent November or January at a flat rate – even $1,200 for the month (which is much lower than summer, but at least covers your costs in winter and keeps occupancy up). The airbtics data indicated the average listing had its best month in July and worst in winter; smoothing that out with long winter stays can improve annual occupancy. Also, in summer, requiring a minimum stay of 5-7 nights (especially Saturday-to-Saturday) can ensure you fill weeks with family vacationers and reduce vacant gaps. Many beach rentals in NMB do weekly stays in peak season, because that market is used to it. Then in shoulder season, drop minimum to 2-3 nights to capture weekend getaways.

5. Fast Response and Great Guest Communication: Airbnb’s search algorithm rewards responsive hosts. Aim to respond to inquiries within minutes if possible. Use the app’s saved responses for FAQs. Clear communication before check-in (sending door codes, directions, what’s provided, etc.) will earn you positive feedback in reviews for “great communication”. Since there is no front desk, make the self check-in process smooth – a lockbox or digital keypad is essential. Provide a detailed but concise welcome message/instructions. Essentially, act as an attentive concierge, even from afar. Happy guests lead to good reviews, which lead to more bookings.

6. Cleanliness and Maintenance: This is huge for reviews. Partner with a reliable cleaning service who understands vacation rental turnover expectations (hotel-level cleanliness, checking for damages, restocking basics like soap/shampoo, etc.). Consider paying a bit more for quality cleaners who send you photos after each clean, so you’re aware of any issues. Proactively handle maintenance – e.g., have your HVAC serviced regularly so it doesn’t fail on a guest, fix that balky sliding door before it annoys someone into a 4-star review, etc. Since the building is older, things like plumbing and AC need care; a minor leak or outage can turn into a bad guest experience if not addressed swiftly.

7. Leverage Reviews and Superhost/Premier statuses: Strive for that Airbnb Superhost status or VRBO Premier Host badge by maintaining at least a 4.8+ rating and low cancellation rates. These badges can boost your listing in search results and instill trust. Encourage guests (gently) to leave positive reviews – often a simple thank-you message after checkout with “We hope you enjoyed your stay and would love to host you again. If you have a moment to leave a review, we’d greatly appreciate it!” works well. Also, learn from any negative feedback. If someone mentions, say, the Wi-Fi was slow, upgrade it or place a signal booster (though the HOA-provided internet is generally decent).

8. Season-Specific Strategies: In summer, focus on maximizing rate – you’ll fill most weeks regardless, so push rate until bookings slow, then you’ve found the sweet spot. In spring/fall, focus on occupancy – consider promotion on multiple channels (list on both Airbnb and VRBO, maybe Booking.com as well to capture all audiences). In winter, consider monthly tenants via networks like snowbird Facebook groups or sites catering to long stays; they often bypass Airbnb and can reduce platform fees. Also, schedule any renovations or deep cleaning in the winter months when a week offline has low opportunity cost.

9. Local Attractions and Partnerships: As an independent owner, you can add personal touches that managers might not. For example, make a guidebook (digital or a binder in the condo) highlighting your favorite local restaurants (there are some great seafood spots in Cherry Grove and nearby Calabash), activities (kayak tours in the marsh, mini-golf, fishing charters, etc.). Guests appreciate insider tips. You could even partner with local businesses (maybe a local surf shop offers your guests a discount on paddleboard rentals – you refer guests to them, and they might refer customers to your condo when they ask about lodging). Such touches can differentiate your unit in reviews: “The host gave fantastic recommendations and even a coupon for a local cafe!”

10. Professional Listings on Multiple Platforms: Don’t rely on just one platform. Airbnb is huge, but VRBO caters to a slightly different demographic (often multi-generational family trips, more traditional vacation renters). List on both to widen your market. Keep your calendar synced (either through iCal links or a channel manager software) to avoid double-booking. The North Myrtle Beach area also still gets bookings through regional vacation rental sites or even old-fashioned phone inquiries via signage. Some owners put a personal rental website up or list on Google Vacation Rentals. The more exposure, the better your occupancy. Just be careful to manage all channels promptly or use a channel manager that consolidates messages and calendars.

By implementing these strategies, owners at A Place At The Beach II have been able to achieve above-average returns and consistent 5-star guest experiences. As evidence of the payoff: the typical North Myrtle Beach rental saw about $39K revenue, which you can aim to meet or beat even with a second-row condo by excelling in management. On the flip side, poor management can leave money on the table – for example, not adjusting prices or slow response can drop your occupancy such that you only make $20K when you could have made $30K.

Remember, the vacation rental business is dynamic. Continually monitor the market – for instance, if a new resort opens or if travel trends shift – and adapt your strategy. But the fundamental formula of great presentation, optimal pricing, and excellent hospitality holds steady. Given Cherry Grove’s enduring popularity with families (some have returned to this area every summer for generations), building a loyal base of repeat guests is another long-term strategy. If you wow them, they’ll come back next year and perhaps even tell their friends – bypassing platforms and booking direct (saving you fees and reducing vacancy uncertainty). Many owners eventually cultivate a repeat clientele that books their week each year.

Tax Advantages: 1031 Exchanges and Self-Directed IRA Strategies

Investing in a vacation rental like A Place At The Beach II not only provides rental income and personal enjoyment – it can also be part of a savvy tax strategy. Two popular methods to maximize the financial efficiency of real estate investments are 1031 exchanges and using self-directed retirement accounts. Here we’ll overview how these can apply to a Cherry Grove condo investment.

1031 Exchange – Deferring Capital Gains Tax

A 1031 exchange (named after Section 1031 of the Internal Revenue Code) allows real estate investors to defer capital gains taxes when selling one investment property and purchasing another “like-kind” investment property, as long as specific rules are followed. In practical terms, if you own an investment property that has appreciated significantly (say a rental house or another condo), you could sell it and roll the proceeds into the purchase of a condo at A Place At The Beach II without paying taxes on the gains right now. The taxes are deferred until you eventually sell the replacement property (or you do yet another 1031 exchange).

How it works: Suppose you bought a rental townhouse 10 years ago for $100,000 and now sell it for $200,000. Normally, you’d owe capital gains tax on the $100K profit (minus any depreciation recapture, etc.). But if you identify the A Place At The Beach II condo as a 1031 exchange replacement, you can use the proceeds to buy it and not pay the tax this year. Key rules:

• You must identify potential replacement property(s) within 45 days of selling the original property.

• You must complete the purchase of the replacement within 180 days of the sale.

• The transaction must be mediated by a Qualified Intermediary (funds cannot touch your bank account in between).

• The new property should be of equal or greater value and you should reinvest all the cash proceeds to fully defer tax.

In our example, you sold for $200K; if the condo costs $210K, you’d roll everything and even add some funds. If the condo were only $180K, any leftover cash (“boot”) would be taxable. So often investors might buy multiple properties or a more expensive one to use up the proceeds.

Benefits for our investor: If you’re coming in with appreciated equity, a 1031 can significantly increase your buying power since the tax that would have gone to Uncle Sam is instead going into the property. On a $100K gain, this could be $15K or $20K (depending on tax rate) saved for now. Additionally, you’re effectively trading up: maybe from a slow-growth property to one with better rental yield or personal use value. Many beach rental owners leveraged 1031 exchanges – for instance, selling an investment up north and exchanging into a vacation condo they can also enjoy. It’s a way to reposition your portfolio without getting hit by immediate taxes.

One strategy relevant to retirees: some do a 1031 exchange into a vacation rental, rent it out for a number of years (satisfying the IRS that it’s truly an investment, not just a second home – generally, safe harbor guidelines suggest renting it at least 14 days a year and limiting personal use to no more than 14 days or 10% of rented days for it to qualify as investment). Then, after a period, they might formally convert it to a primary residence or second home. Eventually, you could even stop renting and move in (though complex rules apply if you sell after that, portion of gain still taxable etc.). The gist is 1031 is a powerful deferral tool.

Keep in mind: if you eventually sell the condo without doing another exchange, you’ll owe the deferred taxes. Some investors plan to keep exchanging until perhaps they pass away, at which point their heirs get a stepped-up basis potentially eliminating the capital gain tax entirely. That’s a long game plan sometimes called “swap ’til you drop.”

Specific to Myrtle Beach area: 1031 exchanges are commonly used to consolidate investment holdings into beachfront property. Just ensure you work with a knowledgeable intermediary and tax advisor. It’s also wise to start looking for exchange targets (like this condo) before you sell the relinquished property, because the 45-day ID window can be stressful if inventory is low. Fortunately, North Myrtle Beach usually has a range of condos for sale at any given time.

Self-Directed IRA/401(k) – Using Retirement Funds to Invest

Another avenue is purchasing the condo through a self-directed IRA (SDIRA) or a self-directed solo 401(k) if you are self-employed. These special retirement accounts allow you to invest in real estate (and other alternative assets) with your tax-advantaged retirement funds.

How it works: You move funds from a traditional IRA or 401k into a self-directed IRA custodian that permits real estate investments. Then the IRA (as a separate entity) purchases the condo. All rental income goes back into the IRA, and all expenses must be paid from the IRA’s funds. The income grows tax-deferred (if traditional) or tax-free (if Roth IRA). This can be a way to use your retirement savings to diversify into real estate and potentially generate a higher return than stocks or bonds might.

For example, if you have $250,000 in a rollover IRA from a previous job’s 401k, you could allocate ~$220K of it to buy and renovate a condo like this inside the IRA. The IRA then collects rental income. You wouldn’t personally touch that income now, but it would compound tax-free inside the retirement account. Down the road, you could sell the property from the IRA and either reinvest or take distributions.

Benefits:

• The rental income and eventual appreciation are shielded from immediate taxation. No income tax on rental profits (which normally you’d pay yearly), no capital gains tax if the IRA sells (the gains stay in the retirement account untaxed until you withdraw as normal IRA distribution).

• You can build your retirement nest egg with an asset you know and can somewhat control (versus the stock market).

• For those who already max out stocks, this provides diversification.

Caveats:

• You cannot use the property personally when it’s held in an IRA. No personal use, not even a single night, or else the IRS could disqualify the IRA (which would be a taxable event). It must be purely investment. So if your goal was some personal vacation use, IRA ownership is not suitable.

• All expenses must be paid from IRA funds, and all income goes back to IRA. You need sufficient cash in the IRA for things like HOA fees, repairs, etc. You can’t “deposit” personal cash to fix something – that would be a contribution subject to IRA limits. So you must maintain an adequate cash buffer in the account.

• If financing: You cannot personally guarantee a loan for an IRA-held property. Only non-recourse loans (where the lender’s only remedy is to take the property, not go after you) can be used, and typically require 40-50% down. Plus, financed IRA properties can trigger UDFI (Unrelated Debt-Financed Income tax) on the portion of income attributable to the loan. Many IRA investors just buy in cash via the account to avoid that complexity.

• Self-directed IRAs have custodian fees and more paperwork. It’s doable, but you’ll pay a few hundred a year to the custodian to administer the asset.

An alternative is using a self-directed solo 401k (if you have self-employment income, you can create a solo 401k and some allow real estate investments). Solo 401ks can be a bit more flexible and avoid some custodian fees if you set them up with checkbook control.

Is it worth it? If you have a lot of retirement money and limited liquid cash, and you strictly want this as an investment (no personal use), it could be. The idea of your IRA owning a beach condo that generates, say, $15K net income that grows your retirement account is certainly attractive – and when you retire, you could even distribute the property to yourself (with taxes) and then use it personally. However, it’s essential to follow the rules. Many use this strategy to flip properties or hold rentals in a tax-free environment, but it’s not mainstream due to the restrictions.

1031 into an SDIRA? One thing to note: you generally cannot directly 1031 exchange into an IRA (since selling a personally held property into an IRA would be a contribution – not allowed). These strategies are separate routes.

Self-Directed IRA LLC (Checkbook IRA): Some sophisticated investors create an LLC owned by their IRA to directly manage property (the IRA owns the LLC, the LLC owns the condo). This can simplify paying bills and such (you as manager of the LLC can sign checks) but it requires careful structuring with a knowledgeable attorney to avoid prohibited transactions.

In short, using retirement funds to invest in A Place At The Beach II is feasible for the right investor profile – typically one who doesn’t need the rental income now and wants to grow retirement wealth, and who doesn’t intend to use the condo personally during the investment phase.

Tax Benefits During Ownership

Even without these special strategies, remember that owning rental real estate has ongoing tax benefits:

• You can depreciate the condo (the building value, not the land – in a condo basically the whole value is allocatable to building) over 27.5 years, which often shelters a good portion of your rental income from taxes on paper. For a ~$210,000 condo, roughly say $180K is building, depreciation could be ~$6,500/year, which helps offset that net income for tax purposes.

• Many expenses are deductible: HOA fees, utilities, property management, maintenance, property taxes, insurance, supplies, etc. Often, paper expenses (including depreciation) mean you pay little to no income tax on the cash flow, especially in early years. This can enhance the effective return.

• If you personally use the condo only minimally (under 14 days or 10% of rental days), you can treat it fully as a rental property for tax purposes. If you use it more, it becomes a mixed-use second home and deductions may be prorated – something to be mindful of if planning personal vacations (the IRS has guidelines on vacation home tax treatment).

• If you decide to sell after some appreciation, if you’re not doing 1031, note that second home/investment property gains are taxable (no $250K exclusion like a primary home). But long-term capital gains rates are generally lower than ordinary income tax.

Always consult with a tax professional who understands vacation rentals. The rules can and do change (for example, there’s always chatter in Congress about modifying 1031 rules, or some proposed caps on deductions, etc.). But historically, real estate has been very tax-advantaged in the U.S., and beach rentals are no exception.

Comparative Investment Analysis: A Place At The Beach II vs Other Myrtle Beach Area Condos

To truly evaluate the investment opportunity, it helps to compare A Place At The Beach II with similar properties – both in North Myrtle Beach and in the broader Grand Strand (Myrtle Beach city and other areas). We’ll consider factors like purchase price, HOA costs, rental income, and appreciation potential.

Price Point Comparison: As of 2024/2025, 2BR units in A Place At The Beach II have been selling in the $190K–$230K range (for example, a furnished 2BR/2BA unit sold in early 2025 for $210,000, and another is listed at $199,900). This is relatively affordable for a beach-area condo. Let’s see what else you could buy:

• In Cherry Grove, Prince Resort (Phase I and II) offers 1, 2, and 3BR oceanfront condos attached to the pier and a resort amenity complex. A 2BR oceanfront there might cost $300K+, and HOA fees there are in the $800-900/mo range (they have pools, fitness, front desk, etc.). Rental incomes are higher (as discussed, possibly $40K+ gross), but your net is impacted by the higher carrying costs and often mandatory rental program or higher management fees. Investment view: A Place At The Beach II is a lower price of entry and you keep more of what you earn, albeit with a slightly lower revenue ceiling.

• In North Myrtle Beach’s Crescent Beach or Windy Hill sections, you might find similar low-rise 2BR condos (some 2nd row, some oceanfront). For instance, Ocean Inn or Sea Villas type older condos. An oceanfront low-rise 2BR might be $250K-$300K but could have similar HOA (maybe $600-700/mo) and similar rents (maybe a bit more due to oceanfront). Sea Cabin in Cherry Grove is an interesting comp: it’s an oceanfront low-rise with a fishing pier; those are 1BR units around $200K and gross maybe $20K/year. So our 2BR across street for similar price can gross $30K – arguably a better yield.

• In Myrtle Beach (city), for $200K you mostly get either a 1BR in a newer oceanfront resort or a 2BR in an older building a few blocks from the ocean. For example, in Myrtle Beach’s Golden Mile, a 2BR ocean view in a 1980s high-rise might be around $180K-$220K but with HOA of $700+ and perhaps rental potential of $20-25K. If you go downtown Myrtle Beach, there are some condotels (e.g. Bayview Resort, Atlantica) where 1BR or 2BR can be in the $150K-$250K range, but many of those have very high HOA fees and are heavily in rental programs. As per Airbtics data, the typical Myrtle Beach unit made $25K on 62% occupancy – the high occupancy there might be due to low rates and year-round conventions, etc., but net can be low after those resort fees.

• Another comparison: Garden City / Surfside Beach (south of Myrtle). There’s actually another property coincidentally called “A Place At The Beach” in Garden City (with oceanfront 3BR units) – those units (if we consider them) go for higher prices as well. Generally, Surfside/Garden City 2BR oceanfront condos are around $250K-$300K with rental incomes similar to NMB (maybe a tad lower ADR because they are a bit less trafficked than NMB).

• Appreciation Potential: Cherry Grove has historically seen steady appreciation in real estate values, in line with the overall Grand Strand market. It’s not the fanciest area, but the limited supply of second-row properties and the desirability of being near the point and marsh lends some stability. Myrtle Beach central tends to have more volatility and sometimes oversupply of condos (so price growth might be slower). Over the long term, owning a second-row condo in Cherry Grove could prove a solid hold, as beachfront and near-beach properties often at least keep pace with inflation and then some. For instance, the owner who bought a unit in this building in the mid-2010s for say $120K likely doubled their money by mid-2020s. Meanwhile, some Myrtle Beach condotels languished in resale value due to high HOAs or building issues. Always consider the resale market: A Place At The Beach II appeals to a broad range of buyers (investors, second-home seekers, even some locals as an affordable beach retreat), which should help liquidity when you go to sell.

HOA and Management Differences: We’ve talked about A Place At The Beach II’s HOA ($750, covers a lot). Compare that to:

• Prince Resort: HOA ~$900, plus some utilities, plus if in their rental program, they take 40-50%. And it’s a condo-hotel (affecting financing – some banks don’t like condotels).

• Bay Watch (a popular oceanfront resort in NMB Crescent Beach): HOA fees for a 2BR there are around $800-900 as well, including amenities. Those units can gross similar $40K but net out lower after onsite management.

• Smaller complexes in Myrtle that allow self-management might have HOAs like $500 but then don’t include insurance or internet, so you’d pay those separate – ends up similar total cost.

• Here at A Place At The Beach II, one slight edge is you can get conventional financing relatively easily because it’s not a condotel (no front desk, etc.). Lenders see it as a regular condo (though with many rentals, but that’s okay). Some high-rise resorts are deemed condotels and require cash or special financing.

Renters’ Perspective: The target renters for A Place At The Beach II are families or groups of 4-6 who want a quiet beach trip, maybe on a bit of a budget (as it’s cheaper than oceanfront, and slightly older interiors). If you had an oceanfront at a fancy resort, you might attract perhaps a broader range including snowbirds for winter (due to indoor amenities) or people who insist on lazy rivers, etc. But you also might get more party groups in the heart of Myrtle Beach. Cherry Grove’s clientele is often repeat families. This can lead to more respectful guests and perhaps less wear-and-tear. From an investment standpoint, “better” guests can mean lower damage and more likely to rebook.

Rental Program of Competitors: If considering other buildings, check if they require using an on-site rental program (common in places like Carolinian Beach Resort or Patricia Grand in Myrtle Beach). Those on-site programs can greatly diminish your control and profit (they often prioritize occupancy via travel agents, etc., at lower rates). A Place At The Beach II is free of that burden.

Competition in Cherry Grove: Within a mile of this complex, the main competition for rentals would be:

• Oceanfront condos (like Sea Pointe, Sea Cabin, Laguna Keyes further up). They have the oceanfront advantage.

• Other second-row or channel-side condos (Cherry Grove has a few channel front complexes which are actually on the marsh side). Those might have boat docks or such but longer walk to beach. Many visitors prefer being across from beach like our building than on the channel several blocks back.

• Beach houses: Cherry Grove has many beach houses (some duplexes for rent). A small 3BR beach cottage a block or two inland might rent for similar prices. Houses attract larger groups but lack pool access typically. Condos have smaller space but shared amenities.

For an investor, condos are lower maintenance (HOA handles exterior), whereas a house you handle everything but have no HOA fee – trade-offs. The condo’s insurance and maintenance are pooled, lowering risk of a huge expense, whereas a beach house could surprise you with a big roof repair.

ROI Comparison: Let’s do a quick ROI thought:

• Our condo: $210K purchase, net maybe $15K (self-managed). That’s about a 7% cash yield if bought cash. If leveraged with 25% down (~$52K) and net $15K minus maybe $8K interest = $7K cash after debt, that’s $7K on $52K = ~13.5% cash-on-cash (plus building equity each year). Pretty strong.

• A $320K oceanfront condo at Prince might net $18K after higher HOA and management, which is ~5.6% cash yield unlevered. If leveraged similarly, maybe a bit lower cash-on-cash due to bigger loan.

• A $160K tiny condotel unit might net $5K, which is ~3% yield – not great but those are often bought for partial personal use or as a cheap entry.

So, for pure investment return, A Place At The Beach II’s value proposition is high. It strikes a balance of moderate purchase price and solid income potential. This often leads to a better percentage return than either the high-end or the very low-end options.

Risk factors to consider comparatively: No investment is without risk. For beachfront area property, consider:

• Hurricane risk: All coastal properties share this. HOA’s insurance covers building damage (assessment could happen for large deductibles though). Properties further inland don’t face this as much but then aren’t vacation rentals.

• HOA health: Smaller complexes like this rely on all owners paying dues. If many owners are investors and the rental market dipped, would defaults rise? Unlikely, but something to watch. Big resorts might have more financial resources but also bigger obligations.

• Regulatory changes: Currently, North Myrtle Beach is lenient on short-term rentals (no special license heavily enforced, etc.). Myrtle Beach city has slightly more regulations (like a city business license, and some talk of overlay districts for rentals). Always keep abreast of local laws – at this time both MB and NMB are vacation rental friendly overall. But some cities have put limits on Airbnb in residential zones. Cherry Grove is a traditional vacation zone, so risk is low there.

• Market competition: The Grand Strand keeps building new hotels and homes. However, new construction of condos for sale has been limited (most new are luxury or time-share oriented). The existing stock is what we compete with. If tourism falters, all rentals suffer; if it grows, all benefit. The Myrtle Beach area saw record tourist numbers in 2021-2022 and sustained strong numbers in 2023, though there was a slight softening of vacation rental occupancy early 2023. We already see occupancy recovering and expect Myrtle Beach’s popularity to continue as a drive-to vacation destination.

In conclusion on comparisons: A Place At The Beach II stands out as a value-investment – lower cost, decent returns, and flexibility. It lacks some glitz and amenity of pricier oceanfront resorts, but that means lower expenses and often a less hectic experience for guests. For an investor who prioritizes ROI and autonomy over bragging rights of owning at a fancy tower, this is a compelling choice.

Next, we’ll wrap up with targeted advice for different investor profiles and a brief example of a financial projection to tie everything together.

Financial Projections Example

To illustrate the investment financially, let’s walk through a sample 5-year projection for purchasing a 2BR unit at A Place At The Beach II as a short-term rental. This will incorporate many points discussed: income, expenses, financing, and tax benefits.

Assumptions: Purchase price $210,000; 25% down ($52,500), 30-year fixed mortgage at 7% interest on remaining $157,500. Self-managed rental with $30,000 gross in Year 1, growing 3% annually (assume slight rate increases or improved occupancy). Expenses: HOA $9,000/yr (increasing 2%/yr), property tax $2,000 (2%/yr increase), insurance $600 (2%/yr), maintenance $1,000 (inflation 2%/yr), utilities $1,000 (small increases), platform fees 3% of gross. Depreciation for tax: say $180K of purchase allocable to building, so about $6,545/yr straight-line. We’ll ignore any state income tax for simplicity, and assume the investor’s in a 24% federal bracket for rental income.

Year 1 (2025):

• Gross Income $30,000 (roughly 210 nights at $143 avg or whatever mix).

• Expenses (excl. mortgage interest): HOA $9,000; Tax $2,000; Ins $600; Maint $1,000; Utilities $1,000; Airbnb fees $900. Total = $14,500.

• Net Operating Income (NOI) = $15,500.

• Mortgage interest (Year 1 approx): $157,500 * 7% = $11,025.

• Cash flow before tax = NOI – interest = $15,500 – $11,025 = $4,475.

• Principal paid in Year 1: ~$1,500 (on a 30-year, initial years are mostly interest).

• Taxable income: NOI $15,500 – depreciation $6,545 – interest $11,025 = –$2,070 (a slight taxable loss; essentially you pay no income tax and in fact have a passive loss carry forward of ~$2K). So no tax due on rental income. You actually saved maybe $500 in taxes you’d otherwise owe because of that loss (depending on passive loss limitations – if this is your only passive activity, you might only use that loss when you sell or offset other passive income, but let’s not digress).

• Cash-on-cash return: $4,475 cash flow / $52,500 down = 8.5% in year 1. Not bad for first year.

• Total return if considering principal paydown ($1,500) and tax savings (~$500): around $6,475 effective, which is ~12.3% on cash.

Year 3 (2027):

• Gross Income $31,800 (3% annual growth assumed).

• Expenses maybe $15,500 (HOA maybe $9,370; others slightly higher; platform fees $954).

• NOI $16,300. Interest maybe $10,700 in Y3 (a bit less as principal is paid). So cash flow ~$5,600.

• Depreciation same $6,545, interest $10,700 -> taxable ~-$945 (still basically no tax).

• Cash flow has grown to ~$5,600 (10.7% cash-on-cash), plus principal paydown ~$1,650, etc.

Year 5 (2029):

• Gross $34,700; NOI ~$17,900; interest $10,300; cash flow ~$7,600.

• Cash-on-cash ~14.5%. Taxable maybe slight positive now, but small (maybe you start paying a few hundred in taxes as rents outpace depreciation+interest).

• Loan balance now around $145K (you’ve gained ~$12K in equity from paydown).

• Let’s say the property appreciates at a modest 4% per year (coastal real estate tends to at least track inflation plus some). Then in 5 years, $210K value might be $255K. You have $255K value, $145K loan, so $110K equity. You initially invested $52.5K, now equity $110K – doubled (some from paydown, some from appreciation). Meanwhile you also pocketed cash flows each year.

This simplistic model shows how leveraging a strong rental can amplify returns. By Year 5, you could consider doing a cash-out refi or selling and 1031 exchanging into another property (maybe two more condos!). If one did a conservative all-cash purchase, the returns are lower but still decent: about 7-8% annual yield plus appreciation.

Of course, many variables can change – maybe rents grow faster (if area demand surges) or an economic downturn hits travel (causing a dip). Perhaps you choose to hire a manager in year 3, which would cut cash flow but free your time, etc. Always perform sensitivity analysis (e.g., what if occupancy drops 10%? What if interest rates rise and you need to refi?).

The overall picture though is that A Place At The Beach II can be a cash flow positive investment from year one (especially if self-managed), with the potential for long-term equity growth and tax-sheltered income. Many real estate investments (like long-term rentals in expensive cities) have negative cash flow initially, banking only on appreciation – not the case here if bought at a fair price.

Investor Profiles: Tailored Recommendations

Finally, let’s discuss how this opportunity fits different types of investors, and what strategies or considerations might be most relevant for each:

For First-Time Real Estate Investors

If you’re a first-time investor, A Place At The Beach II can be an excellent entry point into real estate investing – with some caveats. The relatively low price (~$200K) makes financing and down payment more attainable than, say, a $500K duplex elsewhere. The potential for positive cash flow is a strong plus; you’re not just speculating on appreciation. However, as a first-timer, consider:

• Learning Curve: Managing a short-term rental is an active endeavor. Be prepared to learn about marketing, guest service, and maintenance. It might feel overwhelming at first, but resources abound (forums, blogs, even local host meet-ups). Perhaps start with one platform (Airbnb) then expand. Use the fact that this is a smaller building – maybe reach out to an existing owner who self-manages and pick their brain (many are friendly and proud to share tips).

• Reserve Funds: Make sure you have some cash reserves aside from down payment. Unexpected costs can happen – e.g., if the HVAC dies (though small condos have relatively affordable A/C units, a few thousand dollars). Or an assessment from HOA (less likely if reserves are okay). Also, if there’s a local emergency (hurricane evacuation), you may refund some rents. Having a cushion ensures you’re not financially strained – a common rookie mistake is being cash-poor after closing.

• Personal Use vs. Business Mindset: It’s tempting as a new investor to think “I’ll vacation there and rent it when I’m not using it”. That’s fine – just realize more personal use = less profit and possible tax ramifications if too much personal use. If the goal is profit, discipline yourself to treat it as a business asset first and fun second. You could always reward yourself with a stay in the off-season after hitting a revenue goal.

• Financing: As a newbie, work with a mortgage broker who understands condotels vs condos. A Place At The Beach II should be treated as a condo (no front desk, majority not owned by one entity, etc.), so you can likely get a conventional loan or second-home loan. If you have good credit and some income, you might even qualify for a second-home mortgage with 10% down (rates lower too), if you claim you’ll use it for personal vacation (and just happen to rent it out when you’re not – many do this). But be honest with yourself and the lender about intention to avoid any loan issues.

• Professional Advice: It could be wise to engage a local realtor who specializes in investment condos – they can validate rental projections and guide you on the purchase. Also, have a tax advisor lined up to help you come tax time (first year depreciation, etc., can be confusing).

Overall, for a first-timer, this investment offers a relatively low-risk entry (people will always want beach vacations!), and the ability to learn the ropes on a small scale. Many successful investors started with one condo like this and grew from there.

For Retirement Buyers Seeking Income

If you’re nearing retirement or already retired, you might be interested in a Cherry Grove condo as both an investment and a part-time vacation spot. A Place At The Beach II can serve that purpose well:

• Supplementing Retirement Income: The net income (which we estimated could be around $10K-$15K/year depending on management) can help cover HOA and then some, effectively paying for your personal use vacations and putting a little cash in your pocket. It’s like having an income-producing vacation home. Just be mindful: using it yourself in peak times means trade-offs. For instance, if you occupy it all of July, you’re sacrificing a big chunk of rental income. A strategy some retired owners use is to rent during peak season for maximum income, and use the condo in spring or fall for personal stays (when rental demand is lower). This way, the renters “pay for” your off-season enjoyment.

• Long-Term Hold for Retirement Relocation: Maybe you’re 5-10 years from fully retiring. You buy the condo now with the intention that you’ll rent it out for several years, then later use it more extensively or even move to it part-time. This is a great plan – you build equity and defray costs via rentals now, and later have a place waiting for you. Just recall the tax consideration: if you want to convert it to mostly personal use later, that’s fine; when you sell, any depreciation claimed and gains would be taxable. But if you move in and make it your primary for 2+ years, you could potentially benefit from primary residence capital gains exclusion on some of the appreciation (subject to proportionate rules because it was partially a rental – a bit complex but doable).

• Less Active Involvement: As a retiree, you may not want to be on call 24/7. You might lean toward hiring a property manager or at least a co-host to handle the heavy lifting. Budget that in. It can turn the condo into a mostly passive investment for you, which is ideal if you plan to travel or simply don’t want a second job. The income will be lower net, but hassle-free. If you do enjoy being hands-on and maybe live nearby, you could self-manage as a hobby business – some retirees love interacting with guests and treating it like a part-time job with social benefits.

• Estate Planning: Real estate can be part of your estate to pass on. As mentioned, if held till death, heirs get stepped-up basis (current law), potentially wiping out the taxable gain. Meanwhile, you enjoyed years of rental income. If you think along those lines, a 1031 exchange could help you adjust your portfolio in retirement without tax – e.g., sell a rental up north via 1031 to buy this condo where you also wouldn’t mind vacationing.

Retirees often also consider personal use vs rental more heavily. If you find that you’re not using the condo as much as thought, you can always ramp up rentals; or vice versa, if you hate dealing with rentals, you can stop and treat it as purely a second home (just be ready to cover costs from other income). The flexibility is yours.

One more angle: Self-Directed IRA we covered – some retirees actually use their Roth IRA to buy a vacation rental. They rent it for, say, 10-15 years inside the Roth, then when they hit a certain age, they distribute it to themselves (Roth distributions are tax-free). At that point, they can use the condo personally with no further tax, and they had tax-free growth. This is kind of an advanced strategy but can be appealing if you have a large IRA and this is purely investment until you maybe want to gift it or use it later.

For Experienced Real Estate Investors

If you already own multiple properties or are a seasoned investor, you’ll approach A Place At The Beach II with a critical eye on ROI, diversification, and portfolio fit. Here are points of note:

• Cap Rate and Cash Flow: You’ve seen our analysis – cap rate around 7-8% self-managed. For some investors, that’s quite good for a short-term rental in a prime location (coastal properties often have cap rates depressed by high prices). Compare it to other opportunities: if you’re used to 10% cap rate on long-term rentals in say the Midwest, this is lower – but those Midwestern rentals likely don’t appreciate or have personal use appeal. If you’re coming from high-end STRs where cap rates are 5%, this looks great. So as an experienced investor, decide if ~7% unlevered return plus maybe 4% appreciation (total 11% annual) meets your criteria. It likely will if you’re balancing a portfolio.

• Portfolio Diversification: Maybe you have mostly long-term rentals; adding a short-term rental in a vacation market diversifies your income streams (different demand drivers, seasonal flow). Or if you already have other beach rentals, you know the drill. North Myrtle Beach could be a new market if you’ve invested elsewhere, but it’s one with very robust tourism numbers (over 18 million visitors to the Grand Strand in recent years). It’s also a different cycle than say big city rentals that depend on job markets.

• Scale and Management: With experience, you might have systems to manage remotely or you might hire a local team. Scaling an Airbnb operation beyond a few properties requires either more personal bandwidth or delegation. If you own 5, 10 properties, perhaps you already have an LLC, a cleaning crew on payroll, etc. North Myrtle is a good place for scaling – some investors accumulate several condos or a mix of condos and beach houses. If you wanted to, you could acquire multiple units in this building over time as they come up for sale, effectively cornering a bit of the market and standardizing operations (e.g., same cleaning crew can do all units in one trip).

• Exit Strategy: As an experienced investor, you likely plan your exits. The condo market can be less liquid than single-family homes, but in beach towns, demand from second-home buyers provides liquidity beyond just investor demand. You might hold for income, then eventually 1031 into something bigger (maybe sell two condos to buy a beach house). The relatively low price makes these condos easier to sell piecemeal than, say, a $1M beach house – more buyers at lower price points. Also, experienced folks often consider the hassle factor – one $1M property might be easier to manage than 5 $200K ones. So some use condos as stepping stones.

• Leverage Strategy: You might use a line of credit or cross-collateralization from other properties to buy this, rather than a conventional loan. Just ensure the HOA will provide a condo questionnaire that passes muster if you do get a loan (the building is older but as long as maintenance is good and no litigation, it should be fine).

• Advanced Tax Strategy: If you’re a real estate professional for tax purposes, short-term rentals can actually count as non-passive if you materially participate (there’s a loophole where STRs are not treated as rental activity if average stay <7 days and you materially participate, allowing losses to offset active income). This is deep tax code, but savvy investors might use a cost segregation on the condo to accelerate depreciation (componentize into 5, 7, 15-year assets). This could create a big first-year loss (paper loss) that, if non-passive, offsets other income. Essentially, you could get a huge tax shelter upfront. Even if passive, you carry forward a loss to use later or on sale. Cost seg on a $210K condo might accelerate say $50-60K of depreciation to early years, which at 24% bracket is ~$12-15K tax deferral. This requires paying engineers/accountants, but experienced investors sometimes do this even on moderate properties if it makes sense.

• Local Market Insight: As an experienced investor, you know the value of understanding the local market intimately or having a local partner. The Myrtle Beach area rental market can change with new road projects (e.g., the widening of Highway 9 or new exits on Hwy 31 could make North Myrtle even more accessible), or changes in the tourism mix (rise of youth sports complexes inland have brought more year-round visitors). Staying informed via local real estate investor associations or Realtor market reports (the NMB Realtors often publish stats) will help keep your investment performing. For instance, noticing that a new oceanfront resort is under construction – how might that affect rates? Or if the city were to introduce any rental registration (some talk in MB city but NMB not so much).

In sum, for an experienced investor, A Place At The Beach II can be a high-yield addition to a portfolio, with relatively manageable risk. Just go in with realistic expectations on management and use your expertise to optimize it like any other asset. Also, consider if you want to eventually acquire more units – the Mills Group (a local Realtor team) or others often list multiple in this complex over time; you could turn it into a mini portfolio (some investors even form partnerships or an LLC to own multiple in one complex, streamlining things).

Conclusion: A Place At The Beach II in Cherry Grove presents a compelling case as a vacation rental investment. It combines the allure of a beachside location with the practicalities of strong rental demand and manageable costs. We’ve examined the rental performance data – showing that even in a competitive 2023/2024 market, a well-run 2-bedroom unit here can generate solid income. We’ve broken down the financials, from HOA fees (about $750/month covering most expenses) to expected ADR and occupancy (median ~58% occupancy and ~$140–$190 ADR in NMB), to net income scenarios under self or third-party management. Strategic considerations like employing dynamic pricing and catering to family renters can further boost returns.

Using tools like 1031 exchanges, an investor can roll gains from elsewhere into this property tax-deferred, and possibly later perform another exchange or convert to personal use as circumstances evolve. And through a self-directed IRA, one could even let their retirement funds own the condo, growing a nest egg with beach rental income sheltered from taxes.

When compared to other Myrtle Beach area options, A Place At The Beach II stands out as an under-the-radar value play – it may not have the glam of a high-rise resort, but its ROI can be as good or better thanks to lower cost basis and flexible self-management. It appeals to a broad spectrum: the first-timer can get in relatively easily, the retiree can semi-passively enjoy income and vacations, and the seasoned investor can extract efficiency and scale.

As with any real estate venture, due diligence is key. Prospective buyers should review the HOA documents, get a handle on seasonal rental patterns (maybe even ask for actual rental histories of a unit if available), and perhaps stay a weekend in the area to experience what guests would. But the numbers and qualitative factors we’ve explored suggest that investing in A Place At The Beach II can be a profitable and rewarding endeavor – one that not only yields financial returns but also the intangible benefit of owning your own “place at the beach.”

Sources:

• North Myrtle Beach rental market data (AirDNA/Airbtics) showing ~58% occupancy and $39K annual revenue for typical listings, compared to Myrtle Beach ~62% occupancy but only ~$25K revenue.

• Elliott Realty description of A Place At The Beach II’s unit composition and amenities.

• MLS listings for A Place At The Beach II confirming HOA fees $750/mo and inclusions.

• Lodgify industry report on typical vacation rental management fees (25–30% average).

• Airbnb listing example showing shoulder season rate of $161/night for a unit in this complex.

• General 1031 exchange information and SDIRA usage guidelines.

• Author’s analysis combining market data and investment math for income and expense projections (see tables and examples above).

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.