Sunset Beach is a beautiful coastal destination in North Carolina. Because of its location, it is popular to visit, and there are several vacation property opportunities in the area. This leads some current rental owners and those who have always wanted to get into rental ownership to ask about the investment possibility of rental properties in Sunset Beach.
Are Rentals in Sunset Beach a Solid Investment?
Properties can be a great, solid investment for many people. Especially when it is short-term, vacation rentals that you have in mind. Success in this department depends on the location, property type, management style, and the landlord’s risk tolerance. This quiet, family-oriented beach town is well loved by many people, and it can be a great spot to have consistent renters, but it is not without its risks.
Market insights
Median home values are around $440,000, but several listings are often much higher priced, especially as you get closer to the water. However, there are also properties below this price point. The properties here are much more affordable than many other coastal areas, but in terms of purchasing an investment property, some landlords may feel the prices are too steep. It is worth calculating the ROI potential of a property to help you determine if the price is right for you.
Rental performance in the area has an average annual revenue of $21,000. Many rentals in the area have a 48% occupancy rate. Peak seasons do drive more occupancy and can bring in an increased rental rate of around $133.per night. Peak season is popular and can help to drive income during slower times of the year.
Long-term rental prices average around $1900 a month and provide more stability in beachfront areas as compared to other surrounding locations, but the overall yields are lower than vacation rental income.
A Sunset Beach rental can be a great investment
The key to having success in a rental property is to find one at a great price with operating costs that will not consume all of the rental money you take in. Many investors choose to purchase homes that are inland because they have lower insurance premiums and requirements. Some landlords will also choose homes that are not directly on the water, but one or two rows inland from the water, for their proximity to the water, but with a lower list price and ownership risk.
Making sure to run the numbers very carefully and do your homework on the possible projections of what it would take to market your property to keep it occupied with renters can help you to find success in investing in rental properties in Sunset Beach. There are several great rental properties out here; you may even find one that is being sold from a previous investor, which can help you get started more easily if this is your first rental property investment.
When you are ready to buy a Sunset Beach home, as an investment property, vacation home, or to live full-time, the team at Sunset Beach and Beyond is here to help you find the best home that fits you and your needs. You want an experienced Sunset Beach real estate agent at your side who knows the details of searching for homes in the right places in Sunset Beach to help you find exactly what you are looking for.
“Amy and I have bought and sold four properties in the past twelve years. Both of you are the best realtors we have ever dealt with. Amy and I both felt we could trust you to look out for our interest. The level of service you provided was outstanding, from taking the trash out, helping the buyer with inspecting the irrigation system, dealing with our tenants, always being there if we needed to ask a question, providing constant updates on the market and always keeping us informed on the sale of our house. I think your next venture should be training other realtors, because both of you have mastered the art of providing excellent service. I will be sure to recommend the Frank and Karen team to anybody looking for a trust worthy, knowledgeable and top performing realtor. It was a pleasure working with both of you.” Sunset Beach and Beyond testimonial