Buying a Myrtle Beach Condo as an Investment: The Honest Math

The listing says $220,000, oceanfront, rental income included. It looks like the easiest math in real estate.

Then five line items show up that the listing photos never mention. Here they are, in the order they usually surprise people.

1. The 4% vs. 6% assessment rule

This is the big one, and it's the one out-of-state buyers discover last — usually when the first tax bill arrives.

South Carolina assesses owner-occupied primary residences at a 4% ratio. Second homes and investment properties are assessed at 6%, and they don't receive the same credits a primary residence does. The practical result is that the same condo can carry a dramatically different annual tax bill depending on who owns it and how.

So when a listing shows "taxes: $X," ask whose taxes those are. If the current owner lives there full-time and you won't, that number is not your number. Run the 6% math before you offer — not after.

2. HOA fees that behave like a second mortgage

Oceanfront condo HOA fees can be genuinely large, and for understandable reasons: elevators, pools, exterior maintenance in a salt-air environment, insurance on the building, and staff. Some buildings bundle utilities and cable; others don't.

Two questions I always ask before anything else:

• What's the reserve balance, and when was the last special assessment? An underfunded reserve is a future bill with your name on it.
• What major work is scheduled? Roofs, elevators, balcony repairs, and exterior work in coastal buildings are expensive and non-optional.

3. Coastal insurance

Wind, hail, and flood coverage near the ocean is a real and rising cost, and it's the line item that inland investors most often underestimate. On some oceanfront units, insurance and HOA together genuinely rival the mortgage payment.

Get an actual quote during your inspection period on the specific unit — not a rule of thumb, not last year's number. Premiums in coastal markets have moved a lot.

4. Condotel financing

Many oceanfront Myrtle Beach buildings are classified as condotels — condo buildings that operate with hotel-like characteristics (front desk, on-site rental program, short average stays). Conventional lenders often won't finance these at all, or will require substantially larger down payments and higher rates.

This surprises buyers late in the process, after they're emotionally committed. Confirm financeability on the specific building before you write the offer, not after your lender orders the appraisal.

5. Short-term rental zoning — the deal-breaker nobody checks

You cannot assume you can rent a Grand Strand property short-term just because it's at the beach. The rules are specific, local, and strictly zoned.

In the City of Myrtle Beach, short-term rentals (generally defined as stays under 90 days) are permitted only in certain zoning districts — and are not permitted in most traditional residential districts. North Myrtle Beach restricts short-term rentals to particular districts as well and requires a business license and a short-term rental permit, with fire inspection and zoning review as part of the process. Rentals are also subject to state sales tax plus local accommodations taxes.

And on top of all of that: the HOA or condo board can be stricter than the city. A building in a permitted zone can still prohibit or cap short-term rentals in its own governing documents.

Verify zoning with the city, permitting requirements with the city, and rental rules with the HOA. All three. Every time. Ordinances change, so check current rules rather than relying on what a seller tells you.

What actually goes in my spreadsheet

• Realistic gross rental income — seasonally adjusted. The Grand Strand is not a 52-week market.
• Rental management fees (short-term management costs considerably more than long-term)
• HOA dues, plus a reserve for special assessments
• Insurance — actual quoted, including wind and flood
• Property tax at 6% unless it will genuinely be your legal primary residence
• Turnover costs: cleaning, linens, restocking, wear
• Vacancy in the off-season
• Accommodations and sales taxes on rental revenue

So is it a good investment?

It can be a very good one — the Grand Strand generates real short-term rental income, entry prices are far below most coastal markets, and current inventory levels give buyers negotiating room that didn't exist a few years ago.

But it is a higher-complexity investment than a Triangle rental, not a simpler one. More moving parts, more regulation, more seasonality, more insurance risk. Buyers who do well here are the ones who underwrite it like a small business, because that's what it is.

If you're considering a specific unit, send me the address. Checking zoning, HOA rental rules, and the tax math takes me very little time — and it's the cheapest due diligence you'll ever do.

Tax rates, insurance costs, and short-term rental ordinances change and vary by exact location. Verify current rules with the city, Horry County, the HOA, and a tax professional before purchasing. This is general information, not tax, legal, or investment advice. Equal Housing Opportunity.