Investment Property in North 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 license year runs May 1 through April 30, renewal is due April 30, and owners report gross rental receipts annually with no deduction for expenses. Licenses do not transfer when a property sells, so a buyer applies for a new one. The Business License Division is at 843-280-5585.

Accommodations taxes. The city says short-term rentals must collect and remit rental accommodations tax to the city, county, and state, separate from the license. Horry County's hospitality fee inside city limits is 1.5 percent of gross proceeds from transient accommodations; stays of 90 consecutive days or more are exempt.

Where you can do it. City zoning does not generally restrict short-term rental locations, but some planned development districts, development agreements, and HOA or POA documents may. I pull the association documents before you are committed.

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.