Helping buying my first STR

Orlando, Florida
Short-Term & Vacation Rental Discussions
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Helping buying my first STR

Wagner Dias
Member since 2023 · 2 posts · 1 vote

Hi everyone, I am looking to start my real estate investment journey and buy my first property. I am thinking a STR in Orlando area, is it still a good option? not saturated yet? Will recession slow the market? I was looking at Solara resort but open to other locations. Planning for ~20% down payment. I will probably need to use a PM to manage it. Any insights or thoughts is much appreciated. Thanks !

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Tyler GibsonBusiness Member
Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
3y
Quote from @Wagner Dias:

Hi everyone, I am looking to start my real estate investment journey and buy my first property. I am thinking a STR in Orlando area, is it still a good option? not saturated yet? Will recession slow the market? I was looking at Solara resort but open to other locations. Planning for ~20% down payment. I will probably need to use a PM to manage it. Any insights or thoughts is much appreciated. Thanks !


 The market here in Orlando has many short-term rentals near disney. However many of them are not operated very well. Short-term rentals is one of the unique investment strategies where you can give the exact same house to two different people and get wildly different results because it is heavily dependent upon operations. I know some great property managers here in the area and would be happy to recommend them to you. I've also assisted several folks with acquiring short-term rentals in the area and I'm happy to provide any information that I possibly can to help

[email protected]407-590-9858
GPG Team 596 Reviews
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  • Dwayne GhantPro Member
    Investor · Member since 2022 · 53 posts · 23 votes
    3y

    @Wagner Dias ... Just curious, if this is your first deal, would you consider doing a second home mortgage instead for cheaper rates?

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    1st property? 

    I'd recommend getting your feet wet with a local LTR first.

    1Reply
  • Dwayne GhantPro Member
    Investor · Member since 2022 · 53 posts · 23 votes
    3y

    I agree with @John Underwood. The fluctuations of STRs can be very erratic depending on the market the STR is in and the time of year/season.

    0Reply
  • Wagner Dias
    OP
    Member since 2023 · 2 posts · 1 vote
    3y

    I already have a home paid of, and used to have a LTR in the past (had to sell), so I am familiar with property ownership and LTRs, I would probably use STR in Orlando for personal vacation as well.

    0Reply
  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    3y
    Quote from @Wagner Dias:

    Hi everyone, I am looking to start my real estate investment journey and buy my first property. I am thinking a STR in Orlando area, is it still a good option? not saturated yet? Will recession slow the market? I was looking at Solara resort but open to other locations. Planning for ~20% down payment. I will probably need to use a PM to manage it. Any insights or thoughts is much appreciated. Thanks !


     The market here in Orlando has many short-term rentals near disney. However many of them are not operated very well. Short-term rentals is one of the unique investment strategies where you can give the exact same house to two different people and get wildly different results because it is heavily dependent upon operations. I know some great property managers here in the area and would be happy to recommend them to you. I've also assisted several folks with acquiring short-term rentals in the area and I'm happy to provide any information that I possibly can to help

    [email protected]407-590-9858
    GPG Team 596 Reviews
    WebsiteView Page
    3Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
    3y

    @Wagner Dias

    Our market is ideal for STR, but easy to get caught up with all the information floating out there with trying to sell you on the idea, rather than help you choose the right size and type of home in the right community.

    Solara is just one of about a dozen communities that I would recommend that are all in the same proximity to Disney, have newer homes and great amenities for the guests. Happy to have a call and see what you are looking to get in returns, how you will use it and your budget and timeline. 

    Feel free to reach out anytime, Best of luck to you.

    2Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    3y

    I recommend that you start out by understanding the zoning restrictions in Orlando. Our hotel industry/lobby in Florida is a force and they are known for putting desk clerks on duty of searching for illegally operated vacation rentals listed online.  Here's the city's guidelines:  https://www.orlando.gov/files/...

    Solara Resort will be a tough gig as there are a ton of vacation rentals operating within it.  You may want to consider if you could qualify for a second home loan since you intend to use it periodically yourself should you choose that location.  What makes for a great vacation rental business is not only the location but how you differentiate yourself from all the other properties. As a new owner, you won't have the reviews from past guests which can really propel reservations so you'll need to find the right property and market it the right way to get traction.

    Hope this helps...

    2Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    Do your own research and find an underserved market unless you just really want a house in Orlando for personal use. Also, self managing is easier than you think. I'd recommend looking into that. I'd have to dig into some specifics but I don't see any way that you can cash flow in Orlando given the current purchase price + rates AND paying 18-25% for a property manager. Again, I'm not an expert on that market, but the math doesn't seem to math on the surface. 

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y
    Quote from @Wagner Dias:

    Hi everyone, I am looking to start my real estate investment journey and buy my first property. I am thinking a STR in Orlando area, is it still a good option? not saturated yet? Will recession slow the market? I was looking at Solara resort but open to other locations. Planning for ~20% down payment. I will probably need to use a PM to manage it. Any insights or thoughts is much appreciated. Thanks !


     We are located in Tampa and have a lot of people who stay in Tampa and split their team between Gulf Beaches and Disney.  Just food for thought - but be careful in Orlando as others have pointed out, you have to make sure you are properly zoned as the hotel lobby is fierce and there is a lot of competition!  Feel free to PM me with any FL specific questions, always glad to help!

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    I think Orlando is still a good place to buy, but not sure the returns are there right now. We’ve bought 2 cabins in The Smokies with Julie McCoy, she works for The Short Term Shop. 

    They specialize in STR.

    0Reply
  • William Beck
    Realtor · Branson, MO · Member since 2018 · 272 posts · 283 votes
    3y

    Pro Tip: Go to Vrbo and enter in "Walt Disney World", don't enter in guest count or timeframe for calendar dates. You'll see the highest performing pins cluster around the good performing areas. That's done for a reason by the OTA's using their conversion algorithms to point people towards the properties that they think they should book. That's where I'd start looking for sure. They are all clustered by the parks. 


    For example, Davenport, FL? I'm taking a Hard pass on that because of that!!

    2Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    3y
    Quote from @Wagner Dias:

    Hi everyone, I am looking to start my real estate investment journey and buy my first property. I am thinking a STR in Orlando area, is it still a good option? not saturated yet? Will recession slow the market? I was looking at Solara resort but open to other locations. Planning for ~20% down payment. I will probably need to use a PM to manage it. Any insights or thoughts is much appreciated. Thanks !

    Hello Wagner, we are property managers with several properties under management in Solara. It's a great community. Happy to share performance on different unit types and brainstorm ideas for your investment strategy.  Shoot me a DM if you would like!
    0Reply
  • Kristina Kuba
    Tampa, FL · Member since 2021 · 383 posts · 389 votes
    3y

    @Wagner Dias

    As Andrew mentioned, I would be extra diligent in Orlando due to zoning and the powerful hotel/ resort lobby. Also, Orlando STR travel is primarily driven by theme park tourism and can be cyclical during the seasons and if god forbid there is another pandemic.

    I would also consider other markets. I am in Tampa and own a few short term rentals myself here. Born and raised in Tampa, Obviously I think Tampa is an amazing gmarket. Regardless, make sure your city and neighborhood that you are investing in have different types of STR travel demographics.

    For example, here in Tampa not only do we have theme park and beach tourism (#5 ranked beaches by TripAdvisor in the world in 2021), we have educational tourism (one of the largest universities - USF and then UT), and also medical tourism (we have some of the best hospitals in the country especially for outpatient services). Tampa General Hospital has been named one of the top 100 hospitals in the United States, according to Newsweek. The 1,041-bed hospital was recently ranked as one of the news magazine's World's Best Hospitals 2022.

    Reach out if you have any questions.

    Best of Luck!

    0Reply
  • Mandy Groom
    Clearwater Beach, FL · Member since 2018 · 18 posts · 13 votes
    3y

    @Andrew Steffens

    What percentage of your STR's in Tampa would you say are families on vacation vs. young professionals/other demographics? 🤔

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    @Mandy Groom

    Tampa I would say it is 75/25 younger professionals but a lot of our homes are smaller, less pools etc.

    In Pinellas county I would say it is the opposite 75/25 families but our houses there are larger and have pools.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    3y
    Quote from @Kristina Kuba:

    @Wagner Dias

    As Andrew mentioned, I would be extra diligent in Orlando due to zoning and the powerful hotel/ resort lobby. Also, Orlando STR travel is primarily driven by theme park tourism and can be cyclical during the seasons and if god forbid there is another pandemic.

    Just as point of clarification, Orange County which is Orlando metro does indeed have strong zoning requirements with just a few complexes which are STR legal.

    However when most people refer to Orlando, they mean the Disney market - Osceola and parts of Polk Counties. These counties have large areas which are zoned properly, and in fact have many communities which are purpose-built for vacation rentals which have hotel-like amenities which are in big demand with Disney tourists. By buying in these communities, investors will never have to worry about zoning changes. 
    1Reply
  • Mark MunsonBusiness Member
    Lender · Orlando, FL · Member since 2022 · 440 posts · 300 votes
    3y

    Wagner, I am local to Orlando and we work with a number of investors that buy in the Kissimmee/Disney area. I'm happy to give you any feedback that you need, as this is our wheelhouse. 

    [email protected]407-900-8799
    CapSource LLC4.947 Reviews
    WebsiteView Page
    0Reply
  • January Johnson
    Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
    3y
    Quote from @Wagner Dias:

    Hi everyone, I am looking to start my real estate investment journey and buy my first property. I am thinking a STR in Orlando area, is it still a good option? not saturated yet? Will recession slow the market? I was looking at Solara resort but open to other locations. Planning for ~20% down payment. I will probably need to use a PM to manage it. Any insights or thoughts is much appreciated. Thanks !


     We have great agents from the Short Term Shop in the Orlando area!  Ask for Wayde Hall or Holly Hudson.  They have LOADS of experience, can explain all about the pros of "theming" the spaces, and know the area inside-out!  Their email addresses are wayde@ and Holly@ the same URL as mine (see below).  Tell them I sent you!

    0Reply
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