Short-Term Rental Questions and Advice (Orlando, Kissimmee: rentals, condos, mortgage)

[WVBaker]

So many questions, so many “experts” who claim to have the answers. My thought, take to those who are in the trenches to find your answers. Many thanks ahead of time to those who can offer any advice.

I have been researching the idea of purchasing a “short-term rental property” in the Orlando area as an investment. It seems that the areas have more or less been narrowed down to Kissimmee or Davenport. These areas seem to have the greatest supply of affordable properties and have the most neighborhoods that are zoned for this type of property. If any other areas fall into this category please, by all means, let me know.

Please, anyone with any thoughts or ideas, don’t hesitate to provide input.

I guess this is for all the realtors and property managers out there. What area or neighborhood seems to be the most active for these types of rentals?

I have read about and visited many sites that deal with the mortgage issue. I have read and seen the offers of 20% down required. I have read and seen 10% and 5% required. I have also seen the old standards, “no money down” or “no cash required” offers. Are there any recommendations regarding mortgage companies?

I need to take this next question to any actual owners out there. Is this viable investment that has all the possibilities of, at a minimum paying for itself or at least coming close to the break-even point? I understand there are never any promises or guarantees with these investments, but please, are there any other answers than “can be”? I can’t tell you how many time I’ve heard that response.

I appreciate any all advice anyone is willing share.

[AONE]

Short term rentals are a very specific type of investment that has a potential great return but it is with the effort expended. I have had investors that worked in this arena, most buy 4 bedroom properties as they rent better. If it is a home it needs to have a pool, that tends to be the best formula I have seen for success in this area. The issue with condos and townhomes are the monthly HOA's which do little but reduce the B.E. point. The other thing to consider is the management of the property... this is very expensive . the issue for doing it yourself is can you get it rented out?. Cleaning is another consideration, you need someone to clean them up and prepare them for the next rental.
There is much to consider for this. PM or call me if you want to know more.

[cfIfan]

The question is are you American, of a foreign investor. If you from the UK for example(like me originally) then you need to put down a minimum of 20% down, some companies require a 30% deposit for investment properties. Also consider, that gone are the days where management companies will guarantee a minimum occupency such as 26 weeks of the year, simply because there are so many properties out there for short term rent. Indeed alot of the companies who made these guarantees have now gone banktrupt. Indeed if you work out on average the income from a short term rental to a long term which you know will be guaranteed a year long lease, then it averages out approx the same. The only reason my foreign investors prefer the short term rental properties is because they want to use them aswell and have the flexibility to do so on short term rental properties.

[vacationhomes]

Hello WVbaker,

If you are a foreign investor plan on 25-35% down on a short term rental home.
If you are an american it really depends on your mortgage company.

Do you want to be in a resort community? Windsor Hills is the closest and most popular.

There is so much out there right now, you really have you choice of homes.
What makes you feel comfortable will also make your guests feel at home too.

Please don't only go by a price of the home, view the neighborhood, see what the community has to offer....and don't forget the pool.

If this is something you would like to me to help with please feel free to drop me a line.

[cfIfan]

If you are looking at a property as an investment, the only thin you need to consider is location to disney. I have worked with many buyers who are looking at shor tterm rentals and proximity to Disney will dictate the income you will generate from your proximity. Homes in Davenport/Davenport will earn less than homes alot closer to Disney. There are some great vslue homes in this area, but if long term income is what you are looking for then you need to look alot closer to Disney.

If i can answer any further questions feel free to ask.

[AONE]

If Disney were the only consideration there would be many doing the short term rentals. While there are many that attempt it few succeed. Address all the issues and you can make this very profitable. Don't resolve the problems and you will become another whose expenses exceed their income.When you see 80 units in an area that is short term you have to wonder what isn't working. I suggest copying a formula that works. You don't have to be original to succeed...

[pontelad]

We are from the UK and own a STR in Kissimmee.

Do your homework beforehand!
Location is important but so is the quality of your home and your advertising strategy.

This type of investment is for long term for most of us and not just to make a quick buck!

Join a forum who consists of mainly owners so you can get a good view of the ups and downs of owning a STR.

There are many costs involved in running a STR that many realtors don't tell you about and they soon stack up!

Andrew

[reemo948]

If you want to find a well priced Short term rental property. In a good location, let an expert help you. I personally very much enjoyed the expertise of Ideal Homes USA in assisting me in finding the best value for my money. They really care about the clients well being. They are also fluent in Dutch. You don't lose anything by hiring a Realtor/broker, but you gain ALOT!