Best Places to Buy Rental Property in Myrtle Beach, SC for Steady Cash Flow

Table of Contents

• 1. Myrtle Beach Real Estate Market Overview
• 2. Why Invest in Myrtle Beach, SC?
• 3. Understanding Cash Flow Potential
• 4. Best Neighborhoods to Buy Rental Property
• 5. Legal & Regulatory Considerations
• 6. Best Types of Rental Properties
• 7. ROI Expectations and Market Trends
• 8. Tips for New Investors
• 9. Conclusion

1. Myrtle Beach Real Estate Market Overview

Myrtle Beach, South Carolina, is a renowned coastal destination attracting tourists and investors alike. As of April 2025, the median home price in Myrtle Beach is approximately $325,245, reflecting a 2.1% increase from the previous year. The median price per square foot stands at $210, indicating a steady appreciation in property values. Homes in the area typically go to pending status in around 51 days, showcasing a healthy and active market. [Source]

2. Why Invest in Myrtle Beach, SC?

• Tourism Hub: Myrtle Beach attracts millions of visitors annually, ensuring a consistent demand for rental properties.
• Affordable Entry Point: Compared to other coastal cities, Myrtle Beach offers relatively affordable property prices, making it accessible for investors.
• Favorable Tax Environment: South Carolina boasts low property taxes, enhancing net returns for property owners.
• Growing Population: The area’s population growth contributes to sustained housing demand.
• Year-Round Appeal: Mild climate and diverse attractions make it a year-round destination, reducing seasonal rental fluctuations.

3. Understanding Cash Flow Potential

Investing in Myrtle Beach rental properties can yield positive cash flow, especially when leveraging short-term rental strategies. For instance, a property rented at $2,500 per month with expenses totaling $2,000 can generate a monthly cash flow of $500. Key factors influencing cash flow include property location, management efficiency, and occupancy rates.

4. Best Neighborhoods to Buy Rental Property

1. North Myrtle Beach

Comprising Cherry Grove, Ocean Drive, Crescent Beach, and Windy Hill, North Myrtle Beach is a top destination for vacationers. The area boasts a gross cap rate of 8.10% and average annual revenue of $27,603, making it a lucrative spot for investors. [Source]

2. Carolina Forest

A rapidly growing suburban community, Carolina Forest offers newer homes and amenities appealing to families and long-term renters.

3. Socastee

Located near the Intracoastal Waterway, Socastee provides affordable housing options with strong rental demand from both locals and tourists.

4. Garden City

Known for its laid-back atmosphere and fishing pier, Garden City attracts vacationers seeking a relaxed beach experience, ideal for short-term rentals.

5. Surfside Beach

Dubbed “The Family Beach,” Surfside Beach offers a quieter alternative to Myrtle Beach, appealing to families and retirees.

5. Legal & Regulatory Considerations

• Short-Term Rental Regulations: Most traditional residential neighborhoods in Myrtle Beach are not zoned for short-term rentals (less than 90 days). It’s essential to verify zoning before investing. [Source]
• Licensing Requirements: Operating a rental property requires obtaining a business license from the city.
• HOA Restrictions: Some communities have homeowners’ associations with specific rules regarding rentals; always review HOA guidelines.

6. Best Types of Rental Properties

• Condos: Particularly in oceanfront areas, condos are popular among tourists and offer lower maintenance responsibilities.
• Single-Family Homes: Ideal for long-term rentals, especially in suburban neighborhoods like Carolina Forest.
• Multi-Family Units: Duplexes or triplexes can maximize rental income and reduce vacancy risks.

7. ROI Expectations and Market Trends

Investors in Myrtle Beach can anticipate annual returns between 6% and 9%, depending on property type and management efficiency. The market trend shows a steady appreciation in property values, with a 2.1% increase in median home prices over the past year. Rental demand remains strong, particularly in tourist-heavy areas.

8. Tips for New Investors

• Research Local Regulations: Understand the latest rental laws and zoning regulations to ensure compliance.
• Work with Local Experts: Engage with real estate agents and property managers familiar with the Myrtle Beach market.
• Consider Long-Term Rentals: Given zoning restrictions, long-term rentals may offer more stability and fewer regulatory hurdles.
• Evaluate Property Management Options: Professional management can help maintain property condition and tenant satisfaction.

9. Conclusion

Myrtle Beach, SC, presents a promising opportunity for investors seeking steady cash flow and long-term appreciation. By selecting the right neighborhood, understanding local regulations, and effectively managing properties, investors can capitalize on the city’s strong rental demand and limited housing supply.

For personalized investment strategies and property analysis, contact PEAK Business Consultancy Services today.