Investment Property in Myrtle Beach, SC

This page is general information, not legal, tax, insurance, or investment advice, and I do not tell anyone whether a property will make money. Rental rules, tax law, and insurance change, so please confirm what applies to you with your CPA, your attorney, your insurance agent, and your lender. I am a real estate professional, and my part is finding properties, pulling the facts, and handling the purchase.

The license. The city requires a business license for all rental properties, short-term and long-term. Violations of the zoning code and the business license ordinance are misdemeanors, with fines of up to $500 and/or 30 days on conviction, according to the city.

City accommodations taxes. The city's notice for collections starting July 1, 2021, says accommodations and short-term rental providers collect a 0.5 percent local accommodations tax and a 1 percent hospitality fee for the city, and that the county's 1.5 percent hospitality fee is collected inside the city as well. Ask your CPA to confirm today's rates and the state filings before your first booking.

Lenders require flood insurance on a federally backed loan for a building in a Special Flood Hazard Area, and the South Carolina Wind and Hail Underwriting Association is the market of last resort for wind and hail in the coastal territory. The IRS treats advance rent as income when you receive it, and personal use beyond the greater of 14 days or 10 percent of the days rented at a fair price limits your deductions. For a Section 1031 exchange, identify the replacement within 45 days of transferring the property you give up and receive it within 180 days or by your tax return due date with extensions, whichever comes first. My investment property page has more. Call me with your budget and goal.