Considering buying a STR in Kissimmee

Orlando, Florida
Buying & Selling Real Estate
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Considering buying a STR in Kissimmee

Murtuza Khoja
Member since 2025 · 15 posts · 5 votes

Hello everyone,

I’m a Canadian looking to buy a short term rental vacation home in the Kissimmee area.

Currently we own a long term rental home in Winter Garden which we bought some time ago, and will be paid off completely in Feb 2029.  Over the years, however, we’ve found that we end up coming down to Orlando quite a lot, especially in the last couple of years, and we end up staying in vacation rentals (Reunion, Championsgate, Storey Lake typically).

I would love to simply pull equity from the current property but given that it’s a long term rental and we are Canadians, from what we understand it’s not an option for us.

we love reunion but I feel that would probably not be the best for ROI. We're not married to any Particular development, but ideally we're looking for something newer (less than 5 years), detached with a good sized pool (not splash pool) We've been looking at 4-5 bedroom homes in Championsgate in the under 600k range. However we're not married to that idea either.

Our goals:

1. Have a vacation rental that we can use ourselves as well

2. Would like to obviously make some cashflow.  We exclusively travel during non-peak seasons, so we would be looking to rent out completely during busy/peak seasons, and would stay at the place during slow seasons

Questions for the experts out there:

1. which development(s) tends to be the best for ROI/have the best occupancy rates?

2. Which size of home is typically perform best on a cost benefit analysis? 

3. What percentage of gross revenue does an owner typically keep if they do employ a property manager?


4. we're not necessarily looking to go "all out" in terms of theming, but if we did, what kind of revenue does that bring/ROI can you expect, and which Renos for theming are best to do from a cost-benefit analysis, and what do they typically cost?

4. If there are any owners on this forum that have any first-hand experience with STRs in the Kissimmee area?  Would love any input you would have, especially from Canada, but anyone really.

5. I welcome any input from anyone who is knowledgeable in the area (comment not question, lol)

Your input is much appreciated.


Thanks!

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  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
    1y

    @Murtuza Khoja

    Welcome to BP, let me see if I can be of some help here. I have some YouTube videos that may help with some of your questions and always happy to have a call to dive a little deeper. 

    1. which development(s) tends to be the best for ROI/have the best occupancy rates? 

    There are more factors than just the community (#beds, level of theming, location to the amenities, style of home (single family, townhome, condo) and others) But I would strongly advise to stay within some of the same communities you mentioned like Storey Lake, Windsor Hills, Championsgate and a few others if cash flow is your goal. But it sounds like you should also balance your decision on what fits you and your families preference and style since you will be using it personally. 

    2. Which size of home is typically perform best on a cost benefit analysis?

    This will also change from community to community. Some offerr condos, towns and sfr and all do well because they are closer to Disney. But since there are 10's of thousands of units here, bigger is typically better because there are fewer of them than smaller condos and towns. You can also personalize and theme larger homes better and seperate from the competition a bit. 

    3. What percentage of gross revenue does an owner typically keep if they do employ a property manager?

    Most PM's here charge 15-20%, most are 20, but will depend on what services they offer. You'll likely want someone that can handle A to Z with marketing, pricing, cleaning, maintanence, decor, websites, reviews etc. Some will actually charge you to use your own unit, so be careful. Try not to get locked in too long 


    4. we're not necessarily looking to go "all out" in terms of theming, but if we did, what kind of revenue does that bring/ROI can you expect, and which Renos for theming are best to do from a cost-benefit analysis, and what do they typically cost?

    Sorry, but this is another one that doesn't have a black and white answer. Some theming is basic and some is overdone, try to be unique or at least high quality, not a place you want to skimp. The better theming will attract a higher quality customer that understands the value. Theming can be $5-10,000 per bedroom (includes whole house decor, so a 5 bedroom could be $50,000 for the entire home furniture) depending on your imagination and quality. You should definately expect a good ROI, but I dont' have data to show how that would effect it would have on revenue. Making sure you are doing this in a house and community that will warrant it too. 

    4. If there are any owners on this forum that have any first-hand experience with STRs in the Kissimmee area? Would love any input you would have, especially from Canada, but anyone really.

    I have helped dozens of buyers and sellers in these communities and can speak from both a Realtor and investor perspective, but not an owners view 


    5. I welcome any input from anyone who is knowledgeable in the area (comment not question, lol)

    Wish you the best of luck, check out my Youtube channel and schedule a call if you like. My info is in my profile. 

    1Reply
  • Murtuza Khoja
    OP
    Member since 2025 · 15 posts · 5 votes
    1y

    Hey thanks for your response.


    I noticed your YouTube videos, I’ve saved them to my playlist to watch.  I would love to do a call but I’ll watch your vids first to get a better idea before the call.


    thanks again and talk soon

    1Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    1y
    4. we’re not necessarily looking to go “all out” in terms of theming, but if we did, what kind of revenue does that bring/ROI can you expect, and which Renos for theming are best to do from a cost-benefit analysis, and what do they typically cost?
    As property managers, we see revenue go up by 10%-20% with high quality theming, sometimes more. Often, buyers will make the mistake of selecting an already themed home that looks ok in the real estate listing. But the decor may already have some wear and tear, the theming may be a bit dated, etc. In my opinion, in many cases it’s better to invest in a property that costs less and is a bit under decorated - then hire a really good decorator to upgrade at least a few rooms for the unique,  “wow” moment in photos. Reach out if you would like to compare options or revenue potential for different homes and communities.
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