As you probably know, there are thousands of condos along the Grand Strand, but did you know most of these properties are considered “Condotells?”
A Condotell, is classified as any unit owned by an individual in a complex that has a front desk, a Home Owner Association an a Property Rental Management Company where the HOA does NOT benefit from the revenue of the Rentals.
What does this mean to the consumer? If you are financing, most banks will not finance a Condotell, unless they are keeping the note in house, and most of the time you would be buying into an ARM product with more than 30% down. Movement Mortgage of Myrtle Beach Specializes in Condotells, allowing consumers to put as little as 10% down on a second home, which can still be rented for income.
Let’s Start the Process
You have gotten pre-approved, found the complex you want to look in, an are ready to schedule a showing..Simple right!?
Not So Fast.. we are now in the busy tourist season, many Condotell complexes have put in a stand that guest can only book Saturday to Saturday. With that being said, looking at a Condo on the strip becomes much more difficult. You will mainly get to see one or two between check-in/check-out, an only if the management company allows you to view dirty rooms.
So what do we do?
Have a plan in place. Decide if this will be purely an investment (minimum 20% down for pure investment) or if you are going to be using the unit personally.
Do your due diligence first, make sure the numbers make sense for you.. i.e. HOA cost, taxes, extra insurance, rental management fees, management rental splits, an all of your carrying cost.
Next, realizes almost all of these condos are going to look the same, the only difference will be the view an if they have used a third party management company, AirBnb, VRBO etc.. allowing for the furnishings to be different.
Use your time wisely.. Although this is a big decision, if you are wanting to see more than one complex in a day, you will have to be diligent with your time!
If you are ready to have a conversation about buying an investment property here please reach out, I could write a book on all the things you need to know. Hopefully you found some of this information useful.