Orlando, FL - 400k budget - is there still room in this market for str?

[Hung Ma]

Hey, Bigger Pocket community! First of all, just want to say this community offers much information and positive energy that it really helps motivate people like me to push what was thought to be undoable! 

Having said that, I've been trying to start a STR in Orlando, FL and havent had much luck. Staring at realtor.com for the past month, I have seen the prices coming down in few areas, but I still cant get the numbers to work to operate a STR. Am I too late to the game? or theres still room to play around here?

I am particularly looking into areas within 5-10miles of Disney. I have a budget of 400k, i cant really touch the big houses with game rooms/pool/themed rooms,which seems to do very well. So what is my best move/target/area within this budget?

My Criteria:

-close proximity to Disney

-private pool

-3bedrooms

-2.5bath min

I would definitely be spending part of the budget to theme out the house. 

Really would appreciate any pointers or advice that will lead me in the right direction. I do know I am capable of doing this in the long run, I just want my first STR to solidify a foundation for many more STRs to come! Thank you!

[Tyler Gibson]

Quote from @Hung Ma:

Hey, Bigger Pocket community! First of all, just want to say this community offers much information and positive energy that it really helps motivate people like me to push what was thought to be undoable! 

Having said that, I've been trying to start a STR in Orlando, FL and havent had much luck. Staring at realtor.com for the past month, I have seen the prices coming down in few areas, but I still cant get the numbers to work to operate a STR. Am I too late to the game? or theres still room to play around here?

I am particularly looking into areas within 5-10miles of Disney. I have a budget of 400k, i cant really touch the big houses with game rooms/pool/themed rooms,which seems to do very well. So what is my best move/target/area within this budget?

My Criteria:

-close proximity to Disney

-private pool

-3bedrooms

-2.5bath min

I would definitely be spending part of the budget to theme out the house. 

Really would appreciate any pointers or advice that will lead me in the right direction. I do know I am capable of doing this in the long run, I just want my first STR to solidify a foundation for many more STRs to come! Thank you!

 Many of the properties in the area come fully furnished but you're likely still going to need to do some redecorating. Realistically it sounds like your budget for purchase is closer to 350 and that is going to make it challenging in that area. I would suggest you look at condos or townhomes in the resort style communities as I think they would perform better as smaller units. The smaller single family homes that have a private pool within the proximity you're talking about are probably in more residential neighborhoods the opinion that they don't perform as well as the properties that you're going to find in the resort style communities

[John Underwood]

Look for deals not on MLS. Zillow maybe, FB marketplace, Craigslist, driving for dollars.

It's tough to find deals on MLS unless you start low balling listing that are older.

Run the numbers on everything. 

[Carlos Garcia]

Great way is to find someone who knows what they're doing, like an agent from a known agency who does STRs. She/he will know which areas to focus on per your specific criteria including budget. With the numbers, the biggest thing right now is getting that interest rate to work in your favor. Prices already going down so if you can combine both these factors, you're in a very good position to pull the trigger and execute. Best of luck.

[Hung Ma]

Quote from @Tyler Gibson:

Quote from @Hung Ma:

Hey, Bigger Pocket community! First of all, just want to say this community offers much information and positive energy that it really helps motivate people like me to push what was thought to be undoable! 

Having said that, I've been trying to start a STR in Orlando, FL and havent had much luck. Staring at realtor.com for the past month, I have seen the prices coming down in few areas, but I still cant get the numbers to work to operate a STR. Am I too late to the game? or theres still room to play around here?

I am particularly looking into areas within 5-10miles of Disney. I have a budget of 400k, i cant really touch the big houses with game rooms/pool/themed rooms,which seems to do very well. So what is my best move/target/area within this budget?

My Criteria:

-close proximity to Disney

-private pool

-3bedrooms

-2.5bath min

I would definitely be spending part of the budget to theme out the house. 

Really would appreciate any pointers or advice that will lead me in the right direction. I do know I am capable of doing this in the long run, I just want my first STR to solidify a foundation for many more STRs to come! Thank you!

 Many of the properties in the area come fully furnished but you're likely still going to need to do some redecorating. Realistically it sounds like your budget for purchase is closer to 350 and that is going to make it challenging in that area. I would suggest you look at condos or townhomes in the resort style communities as I think they would perform better as smaller units. The smaller single family homes that have a private pool within the proximity you're talking about are probably in more residential neighborhoods the opinion that they don't perform as well as the properties that you're going to find in the resort style communities

Thank you for your quick response. You are definitely right, my budget is closer to 350k for the property. Ill start narrowing in on condos and townhouses. Thanks!

[Shawn McCormick]

@Hung Ma Welcome to the forums! Glad you are finding value here.

You are looking in the right area, keeping as close to Disney as you can. Your budget will only get you into a resort community if you look at condos and townhomes, you'll have enough options to achieve your goals. There are several available in some of the better communities (Windsor Hills, Championsgate, Paradise Palms, Storey Lake) that are all under $400k.

You didn't mention your loan type and down payment, using a big chunck of cash to put down will eat into any renovation budget and sounds like you are all in at $400. 

If you are using websites to sort thru communities, you are likely not narrowing down to just the ones that are specifically for STR, which you need to be. Happy to help point you in the right direction.

Best of luck!

[Hung Ma]

Quote from @John Underwood:

Look for deals not on MLS. Zillow maybe, FB marketplace, Craigslist, driving for dollars.

It's tough to find deals on MLS unless you start low balling listing that are older.

Run the numbers on everything. 

Thanks, John! I never thought of looking beyond MLS. Definitely expanding my search and educate myself at a different angle. Really appreciate it! 

[Hung Ma]

Quote from @Shawn McCormick:

@Hung Ma Welcome to the forums! Glad you are finding value here.

You are looking in the right area, keeping as close to Disney as you can. Your budget will only get you into a resort community if you look at condos and townhomes, you'll have enough options to achieve your goals. There are several available in some of the better communities (Windsor Hills, Championsgate, Paradise Palms, Storey Lake) that are all under $400k.

You didn't mention your loan type and down payment, using a big chunck of cash to put down will eat into any renovation budget and sounds like you are all in at $400. 

If you are using websites to sort thru communities, you are likely not narrowing down to just the ones that are specifically for STR, which you need to be. Happy to help point you in the right direction.

Best of luck!

 Thank you for the reply, Shawn! I will definitely reach out to you once I gather my thoughts and do my DD.  You sound like just the person I need to reach my final destination.  Thanks!

[Andrew Steffens]

Quote from @Hung Ma:

Hey, Bigger Pocket community! First of all, just want to say this community offers much information and positive energy that it really helps motivate people like me to push what was thought to be undoable! 

Having said that, I've been trying to start a STR in Orlando, FL and havent had much luck. Staring at realtor.com for the past month, I have seen the prices coming down in few areas, but I still cant get the numbers to work to operate a STR. Am I too late to the game? or theres still room to play around here?

I am particularly looking into areas within 5-10miles of Disney. I have a budget of 400k, i cant really touch the big houses with game rooms/pool/themed rooms,which seems to do very well. So what is my best move/target/area within this budget?

My Criteria:

-close proximity to Disney

-private pool

-3bedrooms

-2.5bath min

I would definitely be spending part of the budget to theme out the house. 

Really would appreciate any pointers or advice that will lead me in the right direction. I do know I am capable of doing this in the long run, I just want my first STR to solidify a foundation for many more STRs to come! Thank you!

Hey Hung! 

Glad you are finding value on the forums.  We are HQ in Tampa, but it seems as though by reading the more Orlando expert opinions here.  If you do not find success, Eastern Polk county near Legloland provides lower purchase prices and decent returns.  Also Tampa it is possible to be close to downtown and be in that ballpark price, but about an hour from Disney (but less than an hour from Gulf Beaches!).  Best of luck!

[Michael Baum]

@Shawn McCormick has a ton of knowledge about the area @Hung Ma. I would get on a call and he can help whittle things down.

He has answered a ton of questions about the area for me.

[Clay Asplundh]

Something to keep in mind is that your competition in Disney is going to be very stiff... another option that would be at a cheaper price point could be somewhere more remote in Florida, near a spring possibly? I would imagine the land and homes are significantly cheaper and less competition for STRs. Just a thought, good luck!

[Nathan Gesner]

David Greene talked about this in the latest BP Podcast. Investing has been too easy for too long. We could buy just about anything in the last ten years and the numbers would work. Now the prices are high, interest rates are high, competition is high...it's difficult to find anything that cashflows and it's difficult for everyone. The people tooting their horns about how successful they are are probably basing that success off homes purchased 2+ years ago and they've been lucky with increasing rent rates and equity. Wait until hard times hit and suddenly these geniuses will start to disappear.

The market is tough now. You need to accept that and work within it. We all need to find ways to invest differently than we have in the last 10 years.

[Hung Ma]

Quote from @Nathan Gesner:

David Greene talked about this in the latest BP Podcast. Investing has been too easy for too long. We could buy just about anything in the last ten years and the numbers would work. Now the prices are high, interest rates are high, competition is high...it's difficult to find anything that cashflows and it's difficult for everyone. The people tooting their horns about how successful they are are probably basing that success off homes purchased 2+ years ago and they've been lucky with increasing rent rates and equity. Wait until hard times hit and suddenly these geniuses will start to disappear.

The market is tough now. You need to accept that and work within it. We all need to find ways to invest differently than we have in the last 10 years.

 Hey David, you definitely nailed this one.  I am still optimistic about the market, even though the numbers say otherwise. I think there's still room for people like me, just have to be savvy at this point. Thanks for your comment!

[Alice Horn]

Quote from @Hung Ma:

Hey, Bigger Pocket community! First of all, just want to say this community offers much information and positive energy that it really helps motivate people like me to push what was thought to be undoable! 

Having said that, I've been trying to start a STR in Orlando, FL and havent had much luck. Staring at realtor.com for the past month, I have seen the prices coming down in few areas, but I still cant get the numbers to work to operate a STR. Am I too late to the game? or theres still room to play around here?

I am particularly looking into areas within 5-10miles of Disney. I have a budget of 400k, i cant really touch the big houses with game rooms/pool/themed rooms,which seems to do very well. So what is my best move/target/area within this budget?

My Criteria:

-close proximity to Disney

-private pool

-3bedrooms

-2.5bath min

I would definitely be spending part of the budget to theme out the house. 

Really would appreciate any pointers or advice that will lead me in the right direction. I do know I am capable of doing this in the long run, I just want my first STR to solidify a foundation for many more STRs to come! Thank you!

Agree with others that it will be very difficult to find a pool home in close proximity to Disney that ticks all your boxes. If you start looking at condos and townhomes, the challenge is increased competition from similar units and hotel rooms. That's when having absolutely spectacular decor is EVERYTHING. If you can be really creative in your approach and turn your smaller unit into a magical Harry Potter/Hogwarts wonderland, or vintage Mickey environment...your unit will stand out. Happy to share some examples and price comparisons! 

[Michael Baum]

No kidding. Some of the themed rooms in the top renting homes in the area are keeerazy.

Sleep in a Tie Fighter bursting out of the wall. Life size R2D2's, Cinderella castle rooms..the list is endless. 

[Alice Horn]

@Michael Baum Yes! And my point is that while this type of theming is very common for larger homes, smaller units tend to be more vanilla. So for anyone with a smaller budget this can mean opportunity. Happy to brainstorm some ideas!

[Hung Ma]

@Alice Horn, I am totally down with theming out my str if I ever find one. It's one of my goals!