Washington, DC · Member since 2020 · 12 posts · 3 votes
COVID has me WFH until at least summer 2021. I work in DC but didn’t renew my lease and am currently living in my hometown of Orlando with family rent free. Short term rental by Disney is a goal (think: Airbnb). Should I buy now live there and then rent it later? Thinking I can slowly get it set up and do rentals while I’m here as well depending on demand. What should I consider? What steps should I take?
Real Estate Agent · Orlando, FL · Member since 2019 · 59 posts · 90 votes
6y
@Andrea Aguilar
Short term rentals should do well in the near future as travelers will probably favor the privacy of a home vs sharing amenities and common spaces with other guests. As Alice mentioned, houses will pool will tend to do better. A few steps you could consider are:
1. Select the area for the investment. I don’t think there are that many options in Orlando for short term rentals, but in Kissimmee you can find a lot of great communities for it, and still very close to the airport and parks. Search around the 34746/34747 zip codes
2. Save enough money for it. For a short term rental you’ll probably need 20% down payment (assuming you buy as an investment property), and then you’ll need around 15k for furniture + additional money for remodel. Typically, for a 250k house you’ll be looking at around $60k out of pocket
3. Remodel the house, get the permits, learn the laws and business. There are a ton of good posts on this, while it’s the most important step, I’ll spare the details
4. Start testing the water. Put your house on Airbnb/VRBO and start getting bookings!
Remember, the short term rental market is in a different industry from real estate (and regulated by another entity in Florida). It’s a lot of work, but the cash flow can be significantly higher.
Feel free to reach out with any questions and best luck!
Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
6y
Think about the communities you would like to consider. We strongly recommend stable vacation rental communities closer in to Disney, i.e. Windsor Hills, Windsor Palms or Emerald Island. The "shared home" vacation rental model is less typical here, but you may find a home with an appropriate floor plan to make it work. Pool homes rent much better than homes that don't have a pool!
Washington, DC · Member since 2020 · 12 posts · 3 votes
6y
@Alice Horn thanks Alice! This great for me to consider. I will check out those areas. I’m not planning to share. If I do rent it out while I’m here, they’d have the entire place and I would spend time with family.
Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
6y
@Andrea Aguilar we have a property management company with 75+ homes in Kissimmee, Davenport and Orange County. We use software that makes it easy to provide analytics by home type and community. Happy to provide feedback and reports on any homes you're considering! Have fun with the search.
Real Estate Agent · Orlando, FL · Member since 2019 · 59 posts · 90 votes
6y
@Andrea Aguilar
Short term rentals should do well in the near future as travelers will probably favor the privacy of a home vs sharing amenities and common spaces with other guests. As Alice mentioned, houses will pool will tend to do better. A few steps you could consider are:
1. Select the area for the investment. I don’t think there are that many options in Orlando for short term rentals, but in Kissimmee you can find a lot of great communities for it, and still very close to the airport and parks. Search around the 34746/34747 zip codes
2. Save enough money for it. For a short term rental you’ll probably need 20% down payment (assuming you buy as an investment property), and then you’ll need around 15k for furniture + additional money for remodel. Typically, for a 250k house you’ll be looking at around $60k out of pocket
3. Remodel the house, get the permits, learn the laws and business. There are a ton of good posts on this, while it’s the most important step, I’ll spare the details
4. Start testing the water. Put your house on Airbnb/VRBO and start getting bookings!
Remember, the short term rental market is in a different industry from real estate (and regulated by another entity in Florida). It’s a lot of work, but the cash flow can be significantly higher.
Feel free to reach out with any questions and best luck!
Washington, DC · Member since 2020 · 12 posts · 3 votes
6y
@Serena Kim Thanks for the detail Serena! What are your thoughts on putting 5-10% down? I'm looking at properties between $120-$190k and would prefer to pay PMI in order to get going sooner.
Real Estate Agent · Orlando, FL · Member since 2019 · 59 posts · 90 votes
6y
@Andrea Aguilar
That’s another option, especially if you will plan on living on the property at the beginning, rather than buying as an investment property.
I personally haven’t found a property (~3br with a pool) in the zip codes mentioned for less than $225k (assuming minimal repairs needed). I’m sure if we go farther from the airport and parks you can find properties for much less than that, but they lose the appeal for most visitors (the ones that come to the parks).
Washington, DC · Member since 2020 · 12 posts · 3 votes
6y
@Serena Kim great point. I was thinking condos 1-2 bedrooms. I wouldn’t be living in my rental past sometime next year so I’d get the loan declaring the rental property to avoid issues in the near future. I’ll keep this is in mind as I narrow my search. Thank you!
Real Estate Agent · Orlando, FL · Member since 2019 · 59 posts · 90 votes
6y
@Andrea Aguilar
Ah that makes sense! Just watch out for 2 things:
1. A bulk of condos in Orlando don’t allow short term rentals. On the other hand, a well managed one makes for a great long term rental
2. The ones that do allow short term rentals have big HOA fees. The fees cover the amenities, and my current theory is that most visitors will want privacy. Hence, the will not want to share amenities, and will prefer a single family homes vs condos.
Washington, DC · Member since 2020 · 12 posts · 3 votes
6y
@Braner Dantas I definitely see your point and appreciate the feedback here. I have been tossing around the possibility of doing a 3 bedroom townhome or even condo. I don’t think I’ll go above $190k. All of these questions are helping me define what’s best. Thanks for that insight! The tech is definitely a must. As well as an appealing modern feel to go against all of the “condotel” early 2000s-style resorts in the area also offering room. Most people on Airbnb are doing it for the kitchen access and cool decor as an alternative to staying at a $100/night box hotel. Where are most of the properties you work with?
Property Manager · Orlando, FL · Member since 2018 · 12 posts · 3 votes
6y
@Andrea Aguilar You are right. I had many great feedbacks of people that stayed for the first time on a vacation home and loved the experience. Specially now that a lot of people have some kind of food restriction.
I manage properties in Kissimmee (both side east and west) and Davenport. If you want to take a look at a few properties I manage, I'd more than welcome you to join and I'd be happy to show some communities to help you be assertive on your investment.
Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
6y
@Andrea Aguilar the only two which are vacation rental legal in Orlando (Orange County) are Vista Cay and the Enclave. The Enclave has smaller units (1-2 bedrooms) that do typically rent well, though right now MOST people are looking for pool homes and townhouses which have more privacy. We have several under management in both communities. Also, here are the regs for vacation rentals in Orange County below. Again, these rules don't apply to Vista Cay and the Enclave which are legally zoned for vacation rentals. Hope this helps!
Your property must be zoned as residential.
You can only rent out less than half of your home.
The house must continue to be your primary residence.
During the guest's stay, you must be present.
Only one booking at a time is allowed.
Along with having a short-term rental property permit you must also collect sales tax. You will need to register with Florida’s Department of Revenue. Because short-term rentals are considered transient rental accommodations.
Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
6y
@Olesea A. I'm not aware of too many rentals there. Kissimmee and Davenport are the 2 big markets. We also manage properties in two communities in Orlando - very few legal VR properties there.