On the Grand Strand, two rentals with the same rent can produce very different DSCR results. The difference is usually the coastal insurance quote and the South Carolina property tax treatment of a home the owner does not live in, not the price.
In short: LendingStreet finances Myrtle Beach-area rentals of 1 to 8 units with DSCR loans that qualify on the property's rent, not your W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out refinances up to 75% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. LLC borrowers are standard and 30-year terms are available.
DSCR divides the monthly rent by the full monthly housing payment: principal and interest, property taxes, insurance and any HOA or regime fee. At 1.0x the rent covers the payment exactly. Because the loan is underwritten on the property, a business owner with heavy write-offs qualifies the same way as a salaried buyer.
For a long-term rental, the rent comes from a signed lease or the appraiser's market rent schedule. For a vacation rental, some programs qualify on projected short-term revenue instead. Our investor loans are business-purpose loans on non-owner-occupied property, so second homes you plan to use yourself are not a fit.
Most year-round rentals on the Grand Strand are not on the oceanfront. Carolina Forest, west of the Intracoastal Waterway along US 501, has large subdivisions of 2000s and newer single-family homes and townhomes that rent to healthcare, retail and hospitality workers. Socastee and Forestbrook offer older ranch homes and some duplexes at lower prices, with quick access to SC 544 and the Market Common.
Conway, the county seat, has a historic core, Coastal Carolina University and Conway Medical Center, which support steady demand for houses and small multi-unit rentals. To the north, Little River and Longs have newer construction priced below beach towns, while Surfside Beach and North Myrtle Beach mix older cottages with condos that often lean toward seasonal use.
| Submarket | Typical rental stock | What to watch |
|---|---|---|
| Carolina Forest | 2000s and newer single-family, townhomes | HOA leasing rules, regime fees |
| Socastee and Forestbrook | Ranch homes, some duplexes | Flood zones near the Waccamaw and Intracoastal |
| Conway | Older houses, student and small multi-unit rentals | River flooding history, city rules near CCU |
| Market Common | Townhomes, condos, newer homes | Association rules and fees |
| Little River and Longs | Newer subdivisions | Builder HOAs, distance to jobs |
South Carolina assesses a primary residence at a 4% assessment ratio, but a rental or second home is assessed at a 6% assessment ratio. Owner-occupants are also exempt from school operating millage, which rentals still pay. The result is that the same house can carry a noticeably larger tax bill once an investor owns it.
If you run numbers from the seller's tax bill and the seller lived there, you may understate your taxes. A sale is also an assessable transfer of interest, so the county can reset the value to the purchase price. Ask the Horry County Assessor or Georgetown County records for the parcel's millage, and budget on the 6% assessment ratio at your price.
This example is illustrative and not a quote. Two long-term rentals, each bought at 75% LTV with a 30-year loan. Taxes are budgeted at the 6% assessment ratio, and insurance reflects an inland location outside the high-risk flood zone.
The Carolina Forest house clears the 1.0x standard minimum by a small margin. The Conway duplex costs less, collects more combined rent and lands well above it, which is why small multi-unit rentals inland are popular with Grand Strand investors who want cash flow rather than a beach address.
| Item | Carolina Forest 3-bed house | Conway duplex |
|---|---|---|
| Purchase price | $315,000 | $300,000 |
| Loan at 75% LTV | $236,250 | $225,000 |
| Estimated principal and interest | $1,612 | $1,535 |
| Property taxes | $275 | $260 |
| Insurance | $185 | $190 |
| HOA | $55 | $0 |
| Total monthly payment | $2,127 | $1,985 |
| Monthly rent | $2,250 | $2,500 |
| DSCR | About 1.06x | About 1.26x |
Wind and flood are the two lines that move a Grand Strand DSCR the most. Homes closer to the ocean or the marsh often need a separate wind policy, and when the private market will not write it, many owners use the South Carolina Wind and Hail Underwriting Association. Hurricane deductibles are often a percentage of the dwelling value.
Large parts of the Grand Strand, and areas along the Waccamaw River that flooded after Hurricane Florence in 2018, sit in FEMA flood zones where flood insurance is generally required. Get quotes during due diligence, not after you are under contract with no time left.
Myrtle Beach is one of the busiest beach markets on the East Coast, and many investors want nightly income. The City of Myrtle Beach allows short-term rentals only in certain zones, largely near the oceanfront and resort areas, and restricts them in many single-family neighborhoods. North Myrtle Beach, Surfside Beach and unincorporated Horry County each have their own rules, and many HOAs set minimum lease terms.
Short-term rental operators generally need a business license and must collect state and local accommodations taxes. Confirm zoning and HOA rules for the exact address before you rely on projected nightly revenue. Our STR program can qualify on projected revenue where rentals are allowed.
Oceanfront towers along Ocean Boulevard range from conventional condos to condo-hotel buildings with front desks, rental programs and shared amenities. Some programs will not finance condo-hotel units, and others look closely at the association's budget, reserves, insurance and any litigation. Raise the building name early so we can tell you whether it fits before you spend money on inspections.
South Carolina closings are handled by a licensed attorney, so line up closing counsel early. Then gather the items below.
We run the ratio with the 6% assessment ratio and real insurance quotes, test it at more than one loan amount and show you where it clears 1.0x. If it comes up short, our sub-1.0 DSCR program may fit. Start with the form below or call (877) 298-1001. For statewide guidance, see our South Carolina DSCR page.
Yes. A DSCR loan qualifies on the property's rent compared with its payment. We do not ask for W-2s or tax returns.
A seller who lived in the home was likely assessed at the 4% assessment ratio and exempt from school operating millage. As a rental, it moves to the 6% assessment ratio, and the sale can reset the assessed value.
It can. HOA dues count in the payment, and some associations limit rentals or set minimum lease terms. Read the covenants before you buy.
On some programs, yes, using projected revenue, but only where local zoning, licensing and HOA rules allow nightly rentals at that address.
Some programs do not, and others review the building carefully. Send us the building name early.
The minimum is 620. Stronger credit and lower leverage generally improve terms.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Loans start at $150,000 with no stated maximum. Purchases go up to 80% LTV and cash-out refinances up to 75% LTV, varying by program.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.