How I Underwrite a Myrtle Beach Short-Term Rental (As Someone Who Owns One)

I own and operate a short-term rental on the Grand Strand, so when I underwrite STR deals for clients, I'm using the same framework I bet my own money on. The single biggest mistake I see from out-of-state buyers — especially Northeast buyers used to appreciation-driven markets — is buying gross revenue. The Strand sells you gross. You live on net.

Start with the calendar, not the annual number

An annual revenue projection hides the shape of the year, and on the Strand the shape is everything: peak summer weeks carry the property, shoulder seasons vary wildly by property type and location, and winter tests your assumptions. Two properties with identical projected annual gross can have completely different risk profiles depending on how concentrated that revenue is. I underwrite from a monthly calendar built on comparable properties' actual performance, then stress it: what happens to the year if June underbooks 20%?

The expense stack that eats gross

Management (whether a company's percentage or the honest cost of your own time and a local cleaner/handyman network), platform fees, cleaning turnover, utilities, internet, supplies, and maintenance reserve come first. Then the two Strand-specific heavyweights: insurance — wind/hail and possibly flood, quoted per property, never assumed — and HOA fees, which on oceanfront condos can be substantial and periodically jump via special assessments. Finally, remember SC's 6% assessment ratio for non-owner-occupied property plus accommodations taxes on the rental revenue itself. Stack it all honestly and strong properties still work. Marginal ones reveal themselves fast.

Building and financing decide more than location

On the condo side, the building is the investment. Financing eligibility varies dramatically — some buildings only qualify for specialty or portfolio loans at higher rates, which changes your cost of capital before you've hosted a guest. HOA reserve health, rental policies, and upcoming assessments belong in diligence alongside the inspection. For single-family and channel homes, flood zone and elevation certificates drive the insurance line. None of this appears in listing photos, and all of it moves net yield more than purchase price negotiations do.

What a good deal looks like

After honest expenses and realistic (not brochure) occupancy, I want a deal that produces meaningful cash-on-cash return in its base case and survives its stress case — with any personal-use value treated as bonus, not yield. Deals like that exist on the Strand right now, particularly where sellers have owned long enough to be flexible. If you're a New Jersey investor eyeing the corridor, I'll underwrite candidates with you against my own operating data — the fastest way to learn a market is to borrow someone's scar tissue.

Antonio Greco

Real estate agent licensed in NJ, NY & SC · Keller Williams Valley Realty · Specializing in Bergen County luxury relaunches and the NJ-to-SC corridor. Start a conversation →