Myrtle Beach is one of South Carolina's most active real estate investment markets. With a population of 36,064 and a median home value of $287,900, this coastal tourism hub draws investors who use hard money loans to acquire and renovate properties quickly — especially vacation rentals and BRRRR deals near the oceanfront. But hard money is built for speed, not longevity. Rates between 10% and 14% with short 6- to 18-month terms mean your carrying costs can devour profit if you don't have a clear exit strategy. The refinance out of hard money and into permanent financing is the most important step in your Myrtle Beach investment timeline.
Whether you're flipping beach condos, building a short-term rental portfolio, or executing the BRRRR strategy on single-family homes in the surrounding communities, understanding when and how to refinance your hard money loan will determine whether your Myrtle Beach deal is profitable — or just expensive.
Myrtle Beach Market Snapshot
| Population | 36,064 |
| Median Home Value | $287,900 |
| Median Household Income | $50,558 |
| Fair Market Rent (2BR) | $1,257/mo |
| Estimated DSCR at Median Price | 0.73 |
Why Myrtle Beach Is Active for BRRRR Investors
With an estimated DSCR of 0.73 at median price points, Myrtle Beach may not appear investor-friendly at first glance. But that number tells only part of the story. The fair market rent figure of $1,257 reflects long-term lease rates — not the short-term vacation rental income that dominates this market. Myrtle Beach attracts over 20 million visitors annually, and properties listed on platforms like Airbnb and VRBO routinely generate $2,000 to $4,000 per month in peak season, with annual averages well above long-term rental rates.
This makes Myrtle Beach a prime BRRRR market for investors who understand the vacation rental model. The strategy works like this: acquire a dated or distressed property with hard money, renovate it to vacation-rental standards (modern finishes, beach-themed decor, updated kitchens and baths), furnish it, list it on short-term rental platforms, and then refinance into a DSCR loan using the documented short-term rental income. Many DSCR lenders will underwrite using actual STR income from platforms like AirDNA or your booking history, allowing you to qualify even when long-term rents fall short.
For investors targeting long-term rentals, the path to a viable DSCR requires purchasing properties below the $287,900 median — which is achievable in inland neighborhoods like Forestbrook and parts of the Socastee area where homes can be found in the $180,000 to $230,000 range before rehab.
How Hard Money Refinancing Works in Myrtle Beach
The hard money refinance process in Myrtle Beach follows a proven sequence that aligns with the BRRRR strategy:
Step 1: Acquire with hard money. You identify a Myrtle Beach property — a dated beach condo, a single-family home needing cosmetic work, or a small multifamily — and close quickly using a hard money or bridge loan. Hard money lenders focus on the property's after-repair value (ARV), not your personal income, which allows you to move fast in competitive situations.
Step 2: Rehab the property. Complete renovations to increase the property's value and rental appeal. In Myrtle Beach, this often means hurricane-rated windows, updated HVAC systems, LVP flooring that handles sand and moisture, and coastal-appropriate finishes that photograph well for vacation rental listings.
Step 3: Stabilize with rental income. Place a long-term tenant or establish short-term rental booking history. DSCR lenders want to see that the property generates income. For STR properties, 3 to 6 months of booking history strengthens your application significantly.
Step 4: Refinance into a DSCR loan. Once the property is stabilized and you've met the seasoning requirement (typically 3–6 months from purchase), you refinance into a DSCR loan at 7–8% with a 30-year term. This replaces your 12%+ hard money loan, dramatically reduces your monthly payment, and — if you've created enough equity through rehab — allows you to pull cash out to fund your next deal.
DSCR Loan Requirements for Myrtle Beach Properties
DSCR loans are the most common exit strategy for hard money borrowers in Myrtle Beach because they qualify based on the property's income — not yours. Here are the standard requirements:
- Minimum DSCR: 1.0 (rent must cover the full mortgage payment including taxes and insurance). Some lenders offer programs down to 0.75 DSCR with higher rates or larger down payments.
- Credit score: 660+ for most programs. Higher scores unlock better rates and lower down payment requirements.
- Maximum LTV: 75% for cash-out refinances, 80% for rate-and-term refinances.
- LLC ownership: Allowed and common. You do not need to hold the property in your personal name.
- No tax returns: DSCR loans do not require personal income documentation, W-2s, or tax returns. Qualification is based entirely on the property's rental income.
- Seasoning: Most lenders require 3–6 months from the original purchase date before allowing a cash-out refinance.
- Property types: Single-family homes, condos (warrantable and non-warrantable), 2–4 unit properties, and some small multifamily.
For Myrtle Beach specifically, condo investors should verify that their building is eligible for DSCR financing. Some older oceanfront complexes have HOA issues or deferred maintenance that can complicate financing. Confirm warrantability with your lender early in the process.
Key Considerations for Myrtle Beach Investors
South Carolina landlord-tenant law: South Carolina is generally considered landlord-friendly. There is no statewide rent control, and the eviction process is relatively straightforward compared to states like California or New York. Landlords can begin eviction proceedings with a 5-day notice for non-payment of rent, and contested cases typically resolve within 30–45 days through magistrate court.
Foreclosure process: South Carolina uses judicial foreclosure, which means the lender must go through the court system to foreclose. This process takes longer than non-judicial states (often 6–12 months), which gives investors more time if they encounter financial difficulty — but it also means distressed properties move through the pipeline more slowly, which can affect acquisition opportunities.
Property taxes: South Carolina offers a favorable property tax structure for investors. Investment properties are assessed at 6% of fair market value, with the effective tax rate varying by county. Horry County (where Myrtle Beach is located) has a millage rate that results in annual property taxes of roughly $2,500–$4,000 on a median-priced home — significantly lower than comparable coastal markets in the Northeast or Florida.
Insurance and hurricane risk: Myrtle Beach sits in a hurricane zone, and wind and flood insurance are required on most investment properties. Budget $2,000–$5,000 annually for comprehensive coverage depending on the property's proximity to the ocean and flood zone classification. These costs affect your DSCR calculation, so factor them in when modeling your refinance.
Short-term rental regulations: The City of Myrtle Beach requires a business license for short-term rentals, and some HOAs restrict or prohibit nightly rentals in certain communities. Always verify STR eligibility at both the municipal and HOA level before acquiring a property with a vacation rental strategy in mind.
Myrtle Beach Neighborhoods Popular with BRRRR Investors
Forestbrook: Located just west of the Intracoastal Waterway, Forestbrook offers some of the most affordable single-family homes in the greater Myrtle Beach area. Properties here can be acquired in the $150,000–$220,000 range before rehab, making it one of the most accessible entry points for BRRRR investors targeting long-term rentals with achievable DSCR ratios.
Market Common: Built on the former Myrtle Beach Air Force Base, Market Common is a planned community with restaurants, shops, and parks that has become one of the most desirable areas to live and rent. Renovated properties here command premium rents — both long-term and short-term — and tend to appraise well, making cash-out refinances more viable.
Cherry Grove (North Myrtle Beach): This quieter beach community north of Myrtle Beach proper is popular with vacation renters who want a family-friendly alternative to the main strip. Older beach cottages and smaller condos offer value-add rehab opportunities, and STR income during summer months can be substantial enough to carry the property through the off-season.
Carolina Forest: A large master-planned community west of the city, Carolina Forest attracts families and long-term tenants drawn to its top-rated schools and newer housing stock. Investors find opportunities in homes that need cosmetic updates — new flooring, paint, updated fixtures — and the strong tenant demand supports stable long-term rental income.
Socastee: Situated between Myrtle Beach and Surfside Beach, Socastee is a working-class neighborhood with older homes priced well below the metro median. For BRRRR investors, this area offers high equity-creation potential through renovation, though long-term rents are more modest. Investors here often target a buy-and-hold strategy with aggressive value-add to hit DSCR targets on the refinance.