Compass Bay - Kissimmee (Davenport: real estate, hoa, maintenance)

[alex_lilit]

Good day to all,

there is a friend of mine that is buyingt a new home, that is still building by KB Home, in this zone of Kissimmee

compass bay kissimmee fl - Google Maps

They will give him in November, and he has to pay abt 240000 USD with 5000 of benefit.
In this wonderful forum i discovered that that area is no the "best" one. He has 2 small child, and he bought to be there at least 2-3 months for yr, and other period rent to tourist to try cover the maintenance, tax etc etc...
The Realtor said him that home is perfect for his needing, close to all parks, close to shops, no crimes, no violence... perfect for family.

What do u think? Does he made a good deal?






Many thanks

Lilit

[AONE]

Renting on the short term basis is an arduous process. first you must find 26-52 renters each year. Then you need maintenance to clean the unit after each rental. These are not as easy as one might think. It can also be expensive to rent. If you find a place that handles short term lease they will likely want upwards of 25% with it all added up Then 10-20% going to cleaning. In the case of Condos you have the HOAs to contend with. The home needs to have at least 4 bedrooms to be a viable rental property.
When you put pen to paper I think you will find your break even to be somewhere in the mid 30 weeks. When you actually find out what most are really rented I think you will find it to be closer to 18-22 weeks annually. There are ways to do really well in the short term rentals but it requires a great deal of discipline and a specific type of investor, otherwise it is a loosing deal. If you don't believe me look at all the Brits that are in default in the short term rental communities because they didnt get the rentals they were expecting. They in many cases also watched their condo investment fall by 50% or more.
There are so many ways to successfully make money in real estate. One can even do well investing in the markets that have crashed like Kissimmee and Davenport, you just need to know how to make money there.