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The Definitive Guide to Buying Your First Rental Property

Buying Real Estate

The Definitive Guide to Buying Your First Rental Property

Purchasing a vacation rental property is one of the best investments a person can make, particularly if that rental property is in the Myrtle Beach area. With low housing costs, low property taxes, a year-round mild climate and a steady supply of vacationers, Myrtle Beach rental properties offer return on investments well above the national average. In fact, the Myrtle Beach area was named as the second-best place to buy a beach house according to a recent study released by North America’s largest vacation rental company.

Every day, prospective home buyers from across the world flock to the Grand Strand in pursuit of their dream rental property. For generations, it has been Better Homes and Garden Real Estate Elliott Coastal Living’s honor to help these prospective home buyers find the perfect rental to maximize their ROI. Whether you’re looking for a rental property to serve as your part-time vacation home or to simply provide an additional source of revenue, here are a few tips to finding the perfect first rental property.

Do Your Homework

The first and most critical step in successfully purchasing your first rental is being as well informed as possible. This goes beyond simply shopping around to see what others are charging for a rental or seeing how much homes are going for in a certain area. You need to understand every potential facet of the equation.

What are the costs associated with keeping up your rental property? How many people are visiting the area your looking to invest in every given year? When are they visiting? What are they looking for in a rental? What kind of budget are they working with? How much are they spending when they visit? What do they do when they visit?

Before you look at your first listing, you need to spend some time collecting as much research as you can about the local real estate market and tourism industry. The more you know about an area and your target audience, the easier it will be for you to find the right property.

Location is Key

Anyone who has ever looked at buying real estate of any kind has heard the old cliché, “It’s all about location, Location, LOCATION!” However, choosing the right location is critically important to maximizing your earning potential when purchasing a rental property. No matter how beautiful your property is, no one will want to stay there if it is in an inconvenient or undesirable location.

Your best bet when looking for a rental property at the beach is to look for something close to the water. Rental property that is closer to the water is more marketable to renters, will generate greater revenue and has the best resale potential should you decide to ever sell your rental.

It is important, however, to make sure you weigh the risks and rewards of living close to the water. While proximity to the water means greater revenue for you in the long run, it also translates to a larger initial investment. Higher insurance premiums, greater flood risks and HOA fees are all factors that you need to weigh when determining the risk and reward of purchasing your rental.

Start Small

Every person who has ever made money investing in real estate has had to start somewhere. Most moguls did not start with multi-million-dollar homes or apartment buildings. Instead they started small and worked their way up.

No matter what kind of capital you are working with, it is always a good idea to buy a property that lies in the low- to mid-range price brackets. The median home value in the Myrtle Beach area currently is around $153,000.

Since this is your first investment property, keeping your investment as low as possible will help you stay in the safe zone. That way you don’t tun the risk of losing too much on the deal if you fail to hit expected profit margins.

Use Your Time Wisely

Most vacation destinations experience periods of high and low visitation. As much of your rental income will be coming from these peak seasons, it is important that you use the off seasons as a time to make any necessary repairs to your rental property.

Keeping a well-maintained rental property will ensure greater returns on your investment in the long run. Making repairs or occasional cosmetic changes during the off season ensures your property will have more renters come busy season.

Work with Professionals You Can Trust

Throughout the entire property buying and renting process, it is important to work with a team of professionals you can trust.

 If you are looking for the perfect rental property in the Myrtle Beach area, turn to your friends at Better Homes and Gardens Real Estate Elliott Coastal Living. For over 60-years, we have been helping the people of the Grand Strand with all their real estate needs. We are committed first and foremost to helping you through the homebuying process every step of the way. Our friendly staff and real estate professionals are always ready and willing to help you with all your realty needs.

If you already own a rental property and are interested in maximizing your profits, turn to the vacation experts at Elliott Beach Rentals. Elliott Beach Rentals has been the Grand Strand’s preferred property management company for decades. Their full-service housekeeping and maintenance teams will keep your rental looking its best, while their marketing experts maximize your bookings and profitably. Trust the experts at Elliott Beach Rental to help you get the most out of your vacation rental.

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