Four years ago me and some other vacation rental investors in Daytona Beach sued the city in an attempt to allow STR in all of Daytona Beach. We fought for this for several reasons: 1. tourism is our main economy 2. there are an incredible amount of dilapidated homes that could be renovated and made beautiful if the investment return justified it (which STR in a beach town could) and 3.this is a family-friendly, lower-cost and now COVID friendly way to travel.
Bottom line. We lost. And then we lost every appeal.
I have many opinions on why we lost, band don't believe we should have and our points were solid...but that doesn't change that we lost.
Fast forward to Nov. 2020-The City of Daytona started issuing fines up to $15k for even POSTING on any STR site, even if you never rent a single day. They recently fined one new investor $10k for posting on Airbnb and he had never even booked a reservation. To add insult to injury, he removed the listing the day code notified him of the issue (since it's very difficult to get information on where STR is and is not allowed in most cities) as he didn't even know he was violating anything. $10,000!!!! What?!? The city is aggressively going after every STR owner (my hearing is this Tuesday so I'm sure I will get whacked with a big fine) and adorable vacation homes are showing up for sale weekly.
So what's the good news? Four years ago we saw the writing on the wall on this so I started working with other cities in the area and compiling lists of where STR is legal (and there are plenty of spots to invest in Volusia county that should have great returns, you just have to know where). We are buying STR/Vacation Rental homes as fast as they come on the market and killing it on our returns. Additionally, there are pockets where long-term rental returns are also amazing and can cash flow great, you just need to know where to invest.
Florida has over 1000 people moving in a day, our supply is almost non-existent compared to the past and even condos are giving amazing returns (example: we have a new condo purchased at $270k bringing in $4k a month in short term rental income). While the economy may dip in the future (and will at some point, when is the question), Volusia County is still poised for strong growth IMO. Our low cost living, weather and current interest rates make for a very interesting investment in the area or in Florida in general. Where else can you get a home with a pool a block from the beach under $500k?
We have two vacation rental investor groups starting up next month and meeting monthly. One is for women only (sorry guys, but I'm trying to help my girls invest and grow their wealth..it's my mission lol) and another that is open to anyone interested in learning about STR/Vacation Rental and LTR investing in the area. We talk about exactly how the numbers work and are looking to put together some deals for the group so that people that can't go "all-in" on a property can partner up with others with more experience and grow together. Message me if you would like to come to one of our meetings! It will be fun, we'll have drinks and meet at a local vacation rental-this is a great way to learn more if you are interested in this type of investment.
Do you have some examples of the properties you're mentioning? A quick cursory glance on realtor.com and I'm seeing prices much higher for condos or homes near the beach.
I’m in Orlando, and looking more at the other coast, but interested in the group!!
Hi Ryan! Okay, four examples from the past three months of homes/condos me or clients have purchased that are in zones where vacation rentals are legal: Unit 1: 2 bed/1 bath purchased for $225k, currently finishing up construction to update and make it a 3/2 bath that will sleep 8-10 people. Renovations approx $75k, will be installing a pool in September so all in about $360k. Steps to ocean. Unit 2: 4 Bed/3 bath pool home, purchase price $449k (with seller credit of $15k towards new roof). Purchased fully furnished and ready to rent. Unit 3: 3 bed, 1.5 bath right near beach and restaurants, $3k reno (basically nothing) purchased fully furnished and ready to rent for $235k. Unit 4: 2 bed/2 bath turnkey condo purchased for $270 currently renting for about $4k per month and booked completely until August.
Hi Ezra! I will send you info!
Hi Christa. I just bought last month in DBC. I like to be the part of new groups and simply stay connected. I sent you pm
Hello we are trying to house hack in the Daytona Area! We currently live in Orlando. It would be an honor to join your group!
Hello Krista, Id definitely be interested in joining the group. I have five airbnbs in Central Florida but I'm looking to get something on the coast. ButI'd really like to know what places you found that allow short-term rental along the beach?
Fascinating to read that the city will sue for just posting on Airbnb! Outrageous!
Kudos to you for helping women get into the game and build wealth!
@Ryan Moyer, I will send you some examples of ones for sale later this week. I went under contract on one last week for $239k so they are out there you just have to be ready the second they hit the market.
Hello. I would love to join your group also. I have two rental properties, one in Flagler Beach as a long-term rental and one in Ormond Beach as a short term rental.
Hello Krista, I will be interested in your group. I am presently not in the area but I went to Embry-Riddle and looking at purchasing/partnering up in STR there. We have 5 STRs in Iowa (where I am currently)
Hey Krista! My name is Sean Smith. I’m relatively new to the area. In June, my wife and I bought our home in Ormond Beach. In November, we closed on a 5 unit in Daytona. We were Airbnb our home in Los Angeles until the city guidelines shut us down and had to rent it out for a long term rental. That was a really long way of saying I would love to be in your group. Please send me the information, if the offer is still available. Thank you!
Very interested in joining your group. Also do you have a map/boundary of the Daytona area where they do allow STR? I would love to take a look at it!
Hi Krista, I really like your mission to help women specially. I'm not local but I'd like to be part of this if possible. Just getting into the STR biz and looking for my first property. Coastal Florida is very appealing If you could some info my way, I'd really appreciate it.
Hi all! I just posted info on several STR properties so check out my latest post and if interested in any of them LMK. Also, we are having a Vacation Rental Zoom on 2/10 at 6pm Eastern time, message me if you want the link to join.
@Penny Pells DM your budget and such.
@Kade Robertson I do but I spent 4 years putting it together and it's how I grow my business so will give info but I hold my maps dear, hope you understand.
@Sean Smith-come join us on 2/10 6pm, it's at a beach house in Ormond but offering Zoom too (but locally will have wine and cheese lol). DM if you want details.
@Harshad Leland-let me know parameters of what you are looking for and how I can help.
@Ron Baxter-join us locally 2/10 6pm Ormond Beach beachhouse (or Zoom in) so we call meet each other.
@Mike Shulman-come out to the beach 2/10 or Zoom in and join our crew!
@Crystal Alleyne-love meeting other boss ladies! Zoom or join us 2/10 6pm Ormond Beach.
@Valentina Naumenko-come meet some other boss ladies and guys 2/10 6pm Ormond Beach or Zoom in!
Can't wait to meet you all and if you are investing or start investing let's all track how we do, numbers, etc to see where we start and where we go...it's super fun to watch your portfolio and wealth grow!
Originally posted by @Krista Goodrich :
It's good to see someone fighting for property owners rights in Volusia.
I own some properties in Daytona Beach and the ROI is excellent compared to some of the larger cities in Florida. I also own a property remodeling and architectural services company with a headquarters in Daytona. The company maintains a minimum ratio of 50% women.
I would appreciate it if you could send me more information about the groups you are starting.
Thanks for putting up the fight not giving up till the end. More people like you are needed to eventually make it right!