Condos make up a huge share of the inventory along the Grand Strand — especially in Myrtle Beach proper and North Myrtle Beach, where oceanfront high-rises dominate the market. Buying one is genuinely different from buying a house, in ways that go beyond just "there's an HOA fee." This guide covers what's actually different: how ownership legally works, insurance, reserves, rental rules, and a financing wrinkle that catches a lot of buyers off guard.
I cover the general purchase process — financing, the attorney-closing requirement, property taxes — in my buying guide, so I won't repeat that here. If you're specifically considering a condo as a rental, my investment property guide covers short-term rental legality and the tax layers on rental income in depth.
Step 1: Understand How Condo Ownership Legally Works
South Carolina condos operate under the Horizontal Property Act, the state law that establishes how condominium regimes function. One of the more important provisions for buyers: the council of co-owners (the HOA) is required to insure the building itself, while each individual unit owner retains the right to separately insure their own unit. This isn't just industry custom — it's written into state law, and it's the legal basis for the "master policy vs. individual coverage" split that trips up a lot of first-time condo buyers.
In practice, this means two separate insurance policies typically exist on any condo you buy: the HOA's master policy, and your own individual unit policy (often called an HO-6 policy). Knowing where one ends and the other begins is essential — more on that below.
Step 2: Know What HOA Dues Actually Pay For
Monthly or quarterly HOA dues typically fund some combination of: the master insurance policy required under state law, common-area maintenance (lobbies, elevators, pools, landscaping, structural upkeep), and a reserve fund for future major repairs. Exactly what's included varies building to building — don't assume a lower monthly fee at one building buys the same coverage as a higher fee at another. Ask for the HOA's current budget and a breakdown of what the dues actually fund before you get attached to a specific unit.
Step 3: Insurance Gets More Complicated on the Coast
Because the HOA's master policy and your individual policy split responsibility, and because you're on the coast, condo insurance has more moving parts than a single-family home's:
- The master policy (required by South Carolina's Horizontal Property Act) generally covers the building structure and common areas — but exactly where it stops and your responsibility begins varies by the specific HOA's policy and bylaws. Get a copy of the master policy's declarations page and ask your agent or attorney to help you understand what it covers.
- Your individual unit policy (HO-6) typically covers everything the master policy doesn't — interior finishes, personal property, and liability inside your unit — and is separate from the flood and wind coverage considerations I cover in the buying guide's flood zone and wind and hail insurance sections — those coastal insurance realities apply to condo buyers too, both at the HOA's master-policy level and potentially at your own unit level.
- Ask specifically whether the master policy includes flood and wind/hail coverage on the building, and whether that coverage looks adequate relative to the building's rebuild cost — an underinsured building is a real risk that shows up as a special assessment later, not immediately.
Step 4: Ask for the Reserve Study and Financial Documents Before You're Under Contract
A healthy-looking monthly fee attached to an underfunded reserve account is one of the most common ways a "good deal" condo turns into an expensive surprise. Before you're too far into the process, ask for:
- The HOA's most recent reserve study (an assessment of the building's major components and how well-funded future repairs are)
- Recent HOA meeting minutes, to see whether a special assessment has been discussed or is likely
- Whether the HOA is currently involved in any litigation
- The percentage of owners currently delinquent on dues, if the HOA will share it
None of these documents guarantee anything, but reading them before you buy is far better than discovering a looming assessment after you own the unit.
Step 5: Financing a Condo Works Differently Than Financing a House
This is the part that surprises the most buyers, and it matters even if you're planning to live in the unit yourself, not rent it: lenders don't just underwrite you — they underwrite the building.
- FHA loans require the condo project itself to be on HUD's approved list, or to qualify under FHA's Single-Unit Approval pathway for buildings that aren't separately approved. You can check a specific building's status through HUD's own condo search tool before you fall in love with a unit in an unapproved building.
- Conventional financing (Fannie Mae) has its own project-level review, and — this is the part that catches investors specifically off guard — Fannie Mae's guide explicitly makes buildings that are "managed and operated as a hotel or motel" ineligible for conventional financing, including projects that offer "registration services, rentals of units on a daily or short-term basis, [or] daily cleaning services," even when the individual units are separately owned. If you're considering a building that's heavily short-term-rental-oriented, ask your lender early whether the specific building qualifies for conventional financing at all — some buyers in these buildings end up needing portfolio or non-QM financing instead of a standard 30-year conventional loan.
Neither of these is a reason to avoid condos — but it's a reason to confirm financing eligibility for the specific building before you write an offer, not after.
Step 6: Understand Rental Restrictions Before You Assume You Can Rent It Out
Even where a city's zoning allows short-term rental, the HOA can impose its own tighter rules — a minimum-stay requirement, a cap on how many units can be actively rented at once, a total ban, or a separate rental registration process on top of whatever the municipality requires. Read the bylaws and any rules and regulations specifically for rental restrictions, not just the master deed. I cover the municipality-level short-term rental rules — which vary meaningfully between Myrtle Beach, North Myrtle Beach, and other Grand Strand cities — in my investment property guide; the HOA's rules layer on top of whatever the city allows, and can be more restrictive.
Step 7: Know What to Request Before You're Under Contract
Buyers and their lenders routinely expect to see the HOA's governing documents — declaration, bylaws, and current financials — before closing, and providing them is standard practice, often built directly into the purchase contract. Ask your agent to request the declaration, bylaws, and current financials early rather than waiting for them to show up close to closing.
Common Mistakes Condo Buyers Make Here
- Assuming a low HOA fee is a good sign. It might mean the reserve fund is underfunded instead.
- Not confirming financing eligibility for the specific building before writing an offer, especially in a heavily short-term-rental-oriented building.
- Treating the master policy and your own unit policy as one and the same. They're separate, cover different things, and you need to understand where one stops and the other starts.
- Assuming the city's short-term rental rules are the only rules that matter. The HOA can be more restrictive than the municipality.
- Skipping the reserve study and meeting minutes. They're the best early warning for a special assessment.
Frequently Asked Questions
Does the HOA or the unit owner insure a condo in South Carolina? Both, in different ways. South Carolina's Horizontal Property Act requires the HOA to insure the building itself, while each unit owner separately has the right to insure their own unit. Most owners carry an individual HO-6 policy on top of the HOA's master policy.
Can I get a conventional loan on any condo? Not automatically — Fannie Mae reviews the condo project itself, and buildings operated like a hotel or heavily used for short-term/daily rentals can be ineligible for conventional financing even though the units are individually owned. Confirm with your lender before assuming standard financing will work for a specific building.
Will my HOA let me short-term rent my condo? It depends entirely on that building's specific bylaws and rules — even in a city that otherwise allows short-term rental, an HOA can restrict or ban it, cap how many units can be actively rented, or require its own registration process. Read the governing documents before assuming.
What should I ask for before making an offer on a condo? The HOA's current budget, the most recent reserve study, recent meeting minutes, disclosure of any pending litigation, and the master insurance policy's declarations page. Your agent can help you request all of this as part of your due diligence.
Is a condo a good rental investment here? It can be, but the same building-level financing and rental-restriction issues above apply directly to that decision. My investment property guide walks through how to actually evaluate a rental property without guessing at the numbers.
Ready to Look at Condos?
Every building along the Grand Strand has its own HOA, its own insurance situation, and its own rules — there's no substitute for reviewing the specific documents for a specific building before you commit. Browse current listings to get a sense of what's out there, or reach out directly and I'll help you sort through the buildings that actually fit what you're trying to do.
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