Vacation Rentals & Investment Properties – FAQ

Brunswick County is one of the fastest-growing coastal regions in North Carolina, and several communities stand out for vacation rental demand:

• Oak Island – Known for family-friendly beaches, a wide selection of oceanfront homes, and year-round rental interest.

• Holden Beach – Offers a quieter atmosphere with strong repeat vacationers and excellent rental history for larger oceanfront homes.

• Ocean Isle Beach – Popular for family reunions and multi-generational trips, with high occupancy during peak season.

• Sunset Beach – A smaller, laid-back community ideal for long-term appreciation and consistent seasonal rentals.

Each area has unique appeal, so your investment goals, whether income, appreciation, or personal use, will determine the best fit.

Short-term rental regulations can vary by community, neighborhood, and HOA. In Brunswick County:

• Most beach towns, including Oak Island and Holden Beach, currently allow short-term rentals without restrictive ordinances.

• HOAs and private communities may have their own rental guidelines, so it’s important to confirm before purchasing.

• Licensing and taxes – All vacation rentals must be registered for state and county occupancy tax collection.

Our team at PROACTIVE Real Estate stays up to date on rental rules in each community and can guide you through any restrictions that may affect your property.

A strong beach investment home typically includes:

• Prime location (oceanfront, canal-front, or close to public beach access)

• High-demand amenities (private pool, outdoor spaces, modern kitchens, pet-friendly options)

• Low-maintenance construction suited for coastal conditions

• Strong historical rental performance or proven income potential

Properties that combine vacation appeal with practical upkeep generally deliver the best long-term results.

Financing a vacation rental or investment property in Brunswick County can look a little different than financing a primary residence. Here are the most common options:

• Second-home loans – If you plan to use the property for personal vacations and limit rental activity, a second-home mortgage may qualify. These often have lower interest rates than investment loans but may come with restrictions on how frequently you rent.

• Investment property loans – For homes primarily intended as vacation rentals, lenders classify them as investment properties. These typically require a larger down payment (20–25%) and may carry slightly higher interest rates, but they allow unlimited rental use.

• Cash purchases & alternative financing – Some investors prefer cash or portfolio loans through local banks and credit unions, which can provide more flexibility in competitive coastal markets.

Working with a local lender familiar with Brunswick County’s vacation rental market is key. Our trusted lending partner, Motto Mortgage Professionals, specialize in financing beach homes and investment properties.

Yes – many investors use a 1031 Exchange to defer capital gains taxes when selling one investment property and reinvesting in another of “like kind.” This strategy can be a powerful tool for building wealth through real estate.

Here’s how it generally works:

• You sell your current investment property (such as a rental in another state).

• Instead of taking the proceeds directly, they’re transferred through a qualified intermediary.

• You then reinvest those funds into a new investment property—such as a Holden Beach or Oak Island vacation rental—within specific IRS timeframes.

• By following the rules, you defer paying capital gains taxes on the sale.

While a 1031 Exchange can be highly beneficial, it comes with strict requirements and deadlines. Always consult with your tax advisor or attorney to ensure compliance. Our team at PROACTIVE Real Estate can help connect you with experienced professionals and identify properties that meet exchange criteria.

Projecting rental income depends on several factors, including:

• Location – Oceanfront and canal-front homes typically see the highest demand.

• Size & amenities – Homes with pools, multiple bedrooms, and modern updates perform best.

• Seasonality – Peak rental months are June through August, though Oak Island and Holden Beach often see spring and fall bookings.

• Management strategy – Professional marketing, dynamic pricing, and guest services can significantly increase occupancy rates.

At PROACTIVE, we provide custom rental performance reviews so you can understand projected revenue before making an investment.

Some owners choose to self-manage their rental property, while others prefer the convenience and expertise of a professional management company.

• Self-managing: You’ll be responsible for marketing your property, handling guest inquiries, managing bookings, coordinating cleanings, and dealing with maintenance issues. While this can save on management fees, it often requires constant availability and can be overwhelming—especially if you don’t live nearby.

• Professional management: A local company like PROACTIVE Vacations takes care of everything from marketing and dynamic pricing to guest services, property inspections, and 24/7 support. Our data shows that professionally managed homes in Brunswick County typically achieve higher occupancy rates and stronger rental income compared to self-managed listings.

If your goal is to maximize revenue while minimizing stress, a professional property manager is almost always the better choice—especially in a competitive vacation market like Oak Island or Holden Beach.

Yes! Through PROACTIVE Vacations, we offer full-service vacation rental management designed to maximize performance and reduce stress for property owners. Our services include:

• Professional marketing and listing optimization

• Dynamic pricing for maximum occupancy and revenue

• Guest communication, check-in/out, and support

• Property care, inspections, and maintenance coordination

• Detailed monthly and annual financial reporting

Our homeowners consistently see stronger results than the market average, thanks to our hands-on, data-driven approach.