What you should know when buying a condo in myrtle beach
ฝัง
- เผยแพร่เมื่อ 16 ม.ค. 2022
- When buying a condo in myrtle beach, there are a few things you should know. Especially when it comes to ocean front condos in Myrtle Beach, you really should look at the numbers. Too often, Buyers buy these condos without looking at the financials and some find themselves in a negative cash flow.
In this video, Abe Safa of Century 21 The Harrelson Group in Myrtle Beach discusses what numbers to look for and how to determine the financial situation that you will find yourself in.
Abe Safa is one of the top real estate agents in Myrtle Beach as well as the country. With over 150 transactions per year, Abe has the experience to guide you through the process of buying or selling.
Call us for all your real estate needs or questions. (843) 360-2145
www.abesafa.com/myrtle-beach-...
#myrtle beach #abe safa #real estate #ocean front condo #top real estate agent myrtle beach - บันเทิง
In 2015, I bought a very nice, waterfront unit in FL as a foreclosure at a very good price, with plans for this unit to be my future full-time retirement destination. The building was well-maintained and well-managed. The HOA only allowed rentals at 1 yr minimum. I self-managed and kept it fully rented with the same excellent tenant for 7 years, at 10% below market. Special assessments, ever increasing property tax, property insurance and HOA fees crushed my return on rental income to just 1% annually. I got a very attractive, unexpected cash offer and ended up selling early in 2022, nearly tripling my investment. Now, I'm not reinvesting in real estate so now I'm looking at huge capital gains and depreciation recapture taxes!
The cost of HOA, extraordinary fees, the parking fees, the upkeep of the condo (especially ANYTHING exposed to the salt infested wind), window cleaning, renewing much of the furniture every 3-4 years, state income tax, state land tax, property and fire insurance, water damage insurance, usually paying the condo manager in order to rent out the property, advertising, real estate fees to manage - just go on and on and on. In this market it is IMPOSSIBLE to make money on rentals unless you charge $3-4,000 a week!
Thank you so much for sharing this info.
Very well done video on how to rent a condo.
Most informative video on rental income I’ve ever seen
Glad you found value in it. Anything we can help you with, please let me know.
Great video
Thanks. Glad you found it helpful.
Where could I download a copy of this worksheet?
Very good video and I'm glad that I have been adding up the numbers in the right way. As a first time condo buyer, I'm trying to make sure I get all the numbers accounted for so that there aren't many surprises down the road. I'm thinking now is a good time to buy a rental because rates have got to rise significantly soon to curb inflation. Picking the right unit is key! Thanks for the video!
Glad you got value. Let me know if we can help you find the right condo. 843-360-2145.
Why would anyone consider a return of 6 percent a good return when inflation is higher than your 6 percent return. With inflation alone your losing money and when you add the other factors it’s a total lost. This is a lousy buy by any standard, the only one making money is hoa, tax dept, management and maintenance workers to fix things at the owner expense. The only thing the owner is earning is cost and expenses and erosion of their investment. It seems like the word owner only mean your responsible for all expenses bills taxes etc but zero return
@@anthonybroomfield5162 That is a very good point. For a lot of people it does not make sense...that is why it is so important to have in depth conversations with people before they buy and see if it is the right move for them. For the sake of keeping this short, one example of it making sense is if someone is also going to use and enjoy the condo a good bit. So sacrificing a little monetary return for emotional return, ie. use and enjoyment makes sense for some people. But you are absolutely right in your assessment.
Can we download this spreadsheet ?😊
I heard you can get management fees for 15 percent
Hi, thank you for this. Is there a cap or a restriction on resell?
You’re welcome. There is no cap or resell restrictions.
Hi Abe, I like you video, very helpful. What do you think to purchase SFH instead condo for investment? Would like have your professional opinion. Thank you very much!
Hi Jenny. Please call or text me, so I have your number and we can discuss tomorrow. 843-360-2135
Is there an easy place to pull up rental income data for a specific property?
Unfortunately there is not an easy way. But whatever numbers or help you need, please feel free to reach out. We will be glad to help.
Just to be clear…if buying a condo on Myrtle Beach as an investment property, are you required to hire a management company in order to rent it? Or can you self manage it and still rent it out? Whether it be long term tenant or Air BNB?
You are not required to use a prop management company. But be careful to look at the hoa documents. Some resorts require you to use onsite IF you want your renters to enjoy all the amenities. So you may lose access to some things in resort or in some cases incur an extra monthly fee in order to have access.
@@abesafa9927 thank you for your quick reply. 40% seems VERY high and unreasonable for a management company. Thanks again!
@@willbriz you’re welcome. I agree it high but that is the norm in our market. Let me know if I can help you in any way.
@@abesafa9927hello sir are you still in the market of selling condos ?
Do you need to have management fees
The hoa fees are mandatory but owners can manage their own properly or not rent at all and their are no management fees.
What you should know when buying a condo in myrtle beach??
Have PLENTY of CASH!!
Don’t buy - rent - it’s cheaper!
Figure a $500,000 condo. If lucky, you rent out for 20 weeks a year @ $3,000 - or $60,000. Sounds good eh. Now, subtract fees, insurance, management fees, furniture replacement, condo repair, mortgage payments, property tax - you would be LUCKY to break even.
Now, take that $500,000 and invest to make 8% per year or $40,000. You could lease a place for 10 weeks - and still have 10,000 left over!!!
@@gordoncheswick4169 I DISAGREE!!!