Long Distance Investor looking in Orlando, FL

Buying & Selling Real Estate
5yFollow

Long Distance Investor looking in Orlando, FL

Jake Jaenicke
Contractor · San Diego, CA · Member since 2020 · 22 posts · 13 votes

Hey, Bigger Pockets Community!

My girlfriend and I have an opportunity to partner with a private lender to secure a house in or around Orlando, FL that will be used for STR. We are living in Southern California and are unfamiliar with the location. We have done some research on the neighborhoods and identified a few that seem appealing, but nothing too promising yet.

We wanted to see if anyone has neighborhood suggestions and any tips for buying in or around Orlando. 

We are looking for a 3Bd/2Ba for around $400,000 that is move-in ready (or light renovations needed). We do have someone on the ground in Orlando that can manage the daily operations of the Air BnB, so no need for a property manager.

We are new to investing but are both extremely determined to both get this purchase, and one of our own under our belts. We appreciate any feedback!

Happy almost Friday!

1Reply
24 views

Most Popular Reply

Alberto Nikodimov
Property Manager · Orlando, FL · Member since 2020 · 200 posts · 194 votes
5y

Hey @Jake Jaenicke,

It all depends on exactly what you are looking for and what's available out there. As you probably already know, the inventory in Central Florida is pretty low and you have plenty of buyers to compete with! You are also limited to properties which are allowed to do STR.

My advice is: Make sure you verify that you are allowed to do STR with the property you are purchasing and obtain the required licenses.

Having someone in Orlando will be helpful, just make sure they are qualified and you are protected.

I will be happy to connect and have a chat with you. A brief overview of the market could be useful. I can also recommend few communities you should look into depending on the returns you are expecting!

Good luck!


1Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
    5y

    @Jake Jaenicke I'd encourage you to cold call realtors in that market to let them know what your buying criteria is and what you're looking for. 

    0Reply
  • Alberto Nikodimov
    Property Manager · Orlando, FL · Member since 2020 · 200 posts · 194 votes
    5y

    Hey @Jake Jaenicke,

    It all depends on exactly what you are looking for and what's available out there. As you probably already know, the inventory in Central Florida is pretty low and you have plenty of buyers to compete with! You are also limited to properties which are allowed to do STR.

    My advice is: Make sure you verify that you are allowed to do STR with the property you are purchasing and obtain the required licenses.

    Having someone in Orlando will be helpful, just make sure they are qualified and you are protected.

    I will be happy to connect and have a chat with you. A brief overview of the market could be useful. I can also recommend few communities you should look into depending on the returns you are expecting!

    Good luck!


    1Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
    5y

    Hi @Jake Jaenicke Orlando continues to exceed expectations of many STR investors due to the pent up demand of travers and we haven't even opened up to many parts of the world yet.

    There are many resort style communities that will out perform communities that 'allow' it. The amenities are what set them apart, golf, lazy rivers, restaurants, arcades, theaters etc on site are a big influence to families traveling here. Yes, we have a huge market of units, but if you are willing to make your unit stand out with theming, gamerooms and great customer service to get 5 star reviews, you'll do great. I prefer single family over condos and townhomes, but they can still make money if in the right community.

    These resort communities are zoned specifically for STR, so local regulations don't affect them. Hope this helps.

    1Reply
  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    5y
    Originally posted by @Jake Jaenicke:

    Hey, Bigger Pockets Community!

    My girlfriend and I have an opportunity to partner with a private lender to secure a house in or around Orlando, FL that will be used for STR. We are living in Southern California and are unfamiliar with the location. We have done some research on the neighborhoods and identified a few that seem appealing, but nothing too promising yet.

    We wanted to see if anyone has neighborhood suggestions and any tips for buying in or around Orlando. 

    We are looking for a 3Bd/2Ba for around $400,000 that is move-in ready (or light renovations needed). We do have someone on the ground in Orlando that can manage the daily operations of the Air BnB, so no need for a property manager.

    We are new to investing but are both extremely determined to both get this purchase, and one of our own under our belts. We appreciate any feedback!

    Happy almost Friday!

     Jake, you can't do Short term rentals in Orlando! You can, but you have to live in the home and only rent less than half the rooms. Don't be discouraged you can do it in Kissimmee, Davenport, and some other areas that are outside of Orange County. 

    [email protected]407-590-9858
    GPG Team 596 Reviews
    WebsiteView Page
    1Reply
  • Matt Nico
    Member since 2019 · 448 posts · 306 votes
    5y
    Originally posted by @Jake Jaenicke:

    Hey, Bigger Pockets Community!

    My girlfriend and I have an opportunity to partner with a private lender to secure a house in or around Orlando, FL that will be used for STR. We are living in Southern California and are unfamiliar with the location. We have done some research on the neighborhoods and identified a few that seem appealing, but nothing too promising yet.

    Jake,

    If you look up central florida by county, you will see the City of Orlando and Orange county are not favorable for STR's. The counties north of Disney tend to be for residents and not so much tourists. If you go south and find Disney on a map, draw a sort of moon shaped crescent below Disney and around the east/west. That is the best location to own STR's.

    For Specific communities, try the 4-Corners Region, areas like Story Lake in Kissimmee, Championsgate communities like Providence and Reunion, or the smaller communities around it. I invest in the Championsgate area and its going extremely well. Business is booming.

    Good luck,

    Matt

    1Reply
  • Rick Trivedi
    Real Estate Broker · San Jose, Dublin CA and Florida · Member since 2017 · 165 posts · 48 votes
    5y

    @Matt Nico We have invested in Champions Gate as well, would be good to connect.

    @Jake Jaenicke - Are you only looking for STR and not LTR? In my calculations STR was coming up to be the same revenue as the LTR - of course this was with the outside STR property management fees.

    0Reply
  • Jake Jaenicke
    OP
    Contractor · San Diego, CA · Member since 2020 · 22 posts · 13 votes
    5y

    @Alberto Nikodimov I appreciate the feedback. I did notice from reading other forum threads that I should look in adjacent counties to Orange County for STR. I landed in Kissimee due to its proximity to both the airport and Disney. I agree I need to learn more about this relative in Florida to make sure she is qualified. I plan on reaching out shortly, so thank you for the offer.

    @Jeffrey Donis I agree that is a great tactic to start gathering some information. Thanks for sharing.

    @Shawn McCormick that is all great information! I agree I like the idea of a SFR more than a community, but my partner also plans on traveling here from time to time so the amenities may become a factor. Thank you for sharing.

    @Tyler Gibson those areas keep popping up as the right spot to invest. Thank you for sharing.

    @Matt Nico congrats on the success! I will take a look at those areas now. Appreciate the feedback.

    @Rick Trivedi that is a good point. I ran some numbers on 3B/2BA around $400,000 and the cash flow was dismal. What fees were you seeing on STR management?

    0Reply
  • Rick Trivedi
    Real Estate Broker · San Jose, Dublin CA and Florida · Member since 2017 · 165 posts · 48 votes
    5y

    8% + other quarterly fees, don’t recall exactly but it was definitely coming up to more than regular LTR. Additionally you have the overhead of maintaining furniture and monthly utilities etc

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free