A canadian investor want to buy a vacation home in Orlando (Kissimmee: for sale, real estate market) - Florida (FL) - City-Data Forum

bluecherry · 04-18-2010, 08:56 PM

I have a budge of 100K, want to buy a house, condo or townhouse in Orlando area, where is easy to rent out to snowbirds or long term tenants. I need some advise on the location. I thought about Davenport and Kissimmee, but I heard some people say these area is for short term renters. I need your professional advise on where is the good place to buy? house or condo or townhouse? Do you know any real estate agent who have experience with international investors? Your input is much appreciated.

Broker Dave · 04-18-2010, 10:34 PM

Sent you a PM

qdogfball · 04-19-2010, 07:25 AM

If you tell us what you are wanting to do with a property, we might be able to help.

Example:

You want to live in it 3 months during the summer, or 3 months during the spring, etc.

You want a place to come to 3 times a year for 2 weeks each time..

Do you need a small place? bigger? 3 bedrooms, 2 baths minimum?

Probably, Kissimmee would still be good..

like this condo:

8703 KNIGHTSBRIDGE CT # 8703 Kissimmee FL 34747 3bd, 2 ba for $90,000
MLS# O4975344

or this townhome:

8411 CRYSTAL COVE LOOP, 3bd, 2.5 ba for $84,900 (short sale)

(I am not a realtor)

bluecherry · 04-19-2010, 08:46 AM

The property we want to buy in Orlando is for investment purpose. We have some cash in the bank doesn’t make much return. We were thinking to invest in the real estate market in US. I will be happy if I can have around 8% cash flow each year. In the long run, I still believe US real estate market has room to grow. We plan to buy a couple of properties in different cities. I choose Orlando first because I thought Disney is a big attraction, rental market might be better than other part of the country. We prefer long term rental, but if short term rental is manageable and profitable, we can do that as well.

We don't need the place right now. Maybe in next two years when my son are over 3 years old, we might need the place twice a year for two weeks. but right now i can rent out for the whole time. I prefer to have 3 bedroom, at least 2 bath.

I still can’t decide whether we should buy condo or house. Condo has maintenance fee and HOA. It can be very high. I heard house has high insurance, it is also very costly. What is your opinion?

Kissimmee and Davenport are the two locations I am currently focus on. I guess most condo and townhouses are short term rentals. If I want to rent for long term, do I have other better locations?

Thank you very much

qdogfball · 04-19-2010, 01:40 PM

One thing to understand is..Make sure that you know you WILL not cover your expenses for everything. You MUST be able to make payments for EVERY expense that will be for your new place. Any rentals you may get will be a bonus.

I tell all my clients who will listen about this.

Example that I just looked at this past month:

2913 Pembridge Kissimmee, FL Asking $125,000, put down US$75,000
P&I = $292.00 and Escrow= $272.92 = $564.92
Add the maintenance every month(Lawn, Pool, cleaning) = $250.00
Utilities(phone, internet, water, electricity) = $360.00
for a total of $1,174.92 out the door every month.

so, you will need to rent for 12 days a month @ over $100 a night to break even! (Right now the rates are under $100 a night for a 3bd 2ba place)

Usually the rental days are less than 12 days per vacation home per month.

bluecherry · 04-19-2010, 02:04 PM

how about long term rental? it is hard to find a long term tenant? how much can rent for a 3 bedroom and 2 bath townhouse in Kissimmee? thanks

annerk · 04-19-2010, 02:04 PM

You need to choose long term or short term. You can't rent short term in a regular neighborhood, and many long term renters don't want to be in a neighborhood with short term rentals. (Some short term neighborhoods don't even offer mail delivery.)

bluecherry · 04-19-2010, 02:06 PM

thanks for your reply. We prefer long term rental.

oahufish · 11-05-2010, 10:59 PM

I am in a similar situaton to Blueberry...I want to invest in the Orlando market, would like something close to Disney that could be used as a short term rental sometime in the distant future, but don't want to deal with the extra risks and costs of running a short term rental at this time. Although I do want to take advantage of the great interest rates and low prices being offered. Are there any townhomes or homes for $125k or less in the area that could be used for LTR for the immediate time and still be in an area which allows STR if I choose to do so in the future?

Where do all the Disney employees tend to live? Wouldn't areas like Oakwater or Crestwynd Bay be desired areas for long term renters? I can handle several months of a unit sitting empty just paying small mortgage, tax and Maint/HOA Fee. If the unit is in STR though, it seems to me like the price nearly doubles after paying managment fee's, utilities, taxes, cleaning ect.. and I do not want to pay those cost's if it doesn't rent!!! Not looking for a huge cash flow, but at least to break even most of the year.

whynot66 · 11-06-2010, 05:38 PM

Quote:

Originally Posted by oahufish

I am in a similar situaton to Blueberry...I want to invest in the Orlando market, would like something close to Disney that could be used as a short term rental sometime in the distant future, but don't want to deal with the extra risks and costs of running a short term rental at this time. Although I do want to take advantage of the great interest rates and low prices being offered. Are there any townhomes or homes for $125k or less in the area that could be used for LTR for the immediate time and still be in an area which allows STR if I choose to do so in the future?

Where do all the Disney employees tend to live? Wouldn't areas like Oakwater or Crestwynd Bay be desired areas for long term renters? I can handle several months of a unit sitting empty just paying small mortgage, tax and Maint/HOA Fee. If the unit is in STR though, it seems to me like the price nearly doubles after paying managment fee's, utilities, taxes, cleaning ect.. and I do not want to pay those cost's if it doesn't rent!!! Not looking for a huge cash flow, but at least to break even most of the year.

I keep getting emails from D.R. Horton Builders who have townhouses for sale advertised as being short-term rentals along Highway 27, in Winter Garden. I didn't think Winter Garden's boundaries went that far West, but they were inexpensive and new!