For investors priced out of Wrightsville Beach or seeking better capitalization rates than Oak Island, Carolina Beach one-bedroom condos often look like the Golden Ticket. On paper, the math is irresistible: a lower entry price ($200k–$400k) paired with a town that embraces short-term rentals instead of restricting them. Unlike Wrightsville Beach zoning, Carolina Beach is built for volume.

But buying a one-bedroom condo in CB isn’t a standard residential purchase. Many of these buildings operate as condotels, which triggers an entirely different set of lending and insurance rules. If you walk in with a traditional loan mindset, the deal collapses before it begins.

Myth vs. Reality: The Mortgage Surprise

Myth: “I have great credit and 10% down. Easy approval.”

Reality: Many of the most popular CB complexes—Atlantic Towers, The Reef, Pelican Watch—are non-warrantable. Fannie and Freddie won’t buy these loans.

Why lenders hate them:

• A front desk or hotel-style operation
• High investor-to-owner-occupant ratios
• Short-term rental infrastructure (cleaning services, key desks, daily turnover)

You cannot use a traditional 30-year mortgage. Most buyers need:

• Non-QM loan
• Portfolio loan

These require 20–25% down and typically run 1–2% higher on the interest rate. If your cash position is tight, these buildings are off the table.

The Management Trap: Gross vs. Net

Myth: “It grossed $45k last year—12% cap rate!”

Reality: Gross revenue is meaningless if the HOA covenants force you into a mandatory management program.

Here’s where investors get hurt:

• Some CB condotels require you to use the on-site manager.
• Management fees can run 30%–40%.
• You may not be allowed to self-manage on Airbnb/VRBO.

Our strategy: We target “unrestricted” buildings with optional management. Self-management—or hiring a boutique manager at 15–20%—can almost double your actual net income versus the front-desk program.

Insurance: The High-Rise Risk You Can’t Ignore

Oceanfront towers have high HOA dues ($400–$700+). That usually includes the master policy, but the real trap is the Wind/Hail deductible.

Most coastal towers carry a deductible of:

5% of the building’s total insured value

When a hurricane hits, this becomes a massive “Loss Assessment” billed to owners. In a large tower, that deductible can reach six figures.

Your solution: an HO-6 policy with a strong Loss Assessment rider. Without it, a storm could wipe out your entire year’s cash flow in one afternoon.

The “Shoulder Season” Secret

Why one-bedrooms outperform two-bedrooms in CB:

In peak July, families fill houses. But in October, November, February, and March, demand shifts to:

• Couples
• Travel nurses
• Remote workers
• Weekend getaway renters

These guests want affordability, walkability, and fast WiFi—not three bedrooms.

The result: One-bedroom condos in complexes like Carolina Surf and Spinnaker Pointe often stay booked year-round while larger oceanfront homes sit empty in the winter.

Your Next Step

Carolina Beach offers some of the strongest cash-on-cash returns on the East Coast—if you navigate the non-warrantable lending, the management restrictions, and the insurance math.

Do you want a hands-off rental or maximum ROI through self-management?

Aspyre Realty Group excels at listening and communicating investor goals into properties that perform. We know:

• Which lenders finance condotels
• Which buildings allow self-management
• How to dissect HOA documents before you commit

Let’s identify the high-yield one-bedroom that fits your portfolio.