Is DAVENPORT, FL a good market for my first STR???

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Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
3y

@Israel Mendiola You are getting some mixed signals here. I live here and work in this area and have sold dozens of STR in Davenport/Kissimmee. You do need to be in the right community if you are looking for strictly cash flow. If you plan to use it yourself, use it as a write-off or something else, you'll have more options.

There are resort communities like Championsgate, Windsor Island, Solara and several other top tier resort style communities that are literally built to be STR without fear of the HOA or city retaliating against you like is happening all over. You can go outside of these or pick a lessor amenitized or 'regular' community, but the numbers will likely not pan out.

Happy to dive a little deeper on this if you like, there are a lot of nuances to understand about this market compared to others. Just PM me.

Best of luck. 

4Reply
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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Israel Mendiola. What would bring people to Davenport? It isn't really close to anything like the beach or Disney.

    Have you checked on AirBNB and VRBO to see what is in the area? What are their nightly rates, occupancy and amenities?

    Doing that will give you a good bit of info to see how it could perform.

    1Reply
  • Michael Elliott
    Member since 2021 · 33 posts · 8 votes
    3y

    @Michael Baum some areas are close to Disney but yes, some are very far! We are actually looking in the same area Davenport/Champions Gate and toured some houses the other day. Our surprise was that pictures and actual conditions are NOT the same! We were shocked at the difference some real estate agents put in their listings versus the condition of the house. It is obvious that they are using STR listing photos from a few years ago in the listing so be careful and make sure you visit any house you are thinking of buying @Israel Mendiola!

    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    From what I'm hearing from many people I would be very hesitant to invest in the Davenport/Orlando area. Not many are hitting the pinch point yet on their properties, but the bookings have dropped substantially. Yet on the other side of the state someone just lunched a STR and in the first couple of days has $20k+ in bookings for the rest of the year.

    [email protected]330-557-3021
    1Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    Very hit or miss from what I've heard as well. It has a similar flavor to other pureplay vacation markets in that there is a lot of demand, but also a lot of supply, so for you to perform well, separating yourself with a strong listing, and possibly some sort of niche, will be vital. 

    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 996 posts · 1k+ votes
    3y
    Quote from @Michael Baum:

    Hey @Israel Mendiola. What would bring people to Davenport? It isn't really close to anything like the beach or Disney.

    Have you checked on AirBNB and VRBO to see what is in the area? What are their nightly rates, occupancy and amenities?

    Doing that will give you a good bit of info to see how it could perform.


     Davenport/Kissimmee are what people are talking about when they talk about "Disney" or "Orlando" STRs.  Big giant neighborhoods with waterparks and arcades full of nothing but STRs specifically for people going to Disney.

    Cosmic Vacations4.9174 Reviews
    WebsiteView Page
    0Reply
  • Account Closed
    Homeowner · Celebration, FL · Member since 2023 · 37 posts · 14 votes
    3y
    Quote from @Israel Mendiola:

    Hey friends,

    Could you please share your thoughts on investing in my first STR located in Davenport, FL?

    Thanks!

    Hi - we both invest and manage STR luxury vacation homes exclusively in the Davenport, FL and 34747 zip code area.

    Townhouses and condos won’t get you positive passive revenue you need in this area for a number of reasons, however the right house on the right street in the right resort, will be highly successful, regardless of the condition of the market. Speak with local pros who work here day in and out. 

    The market is around 10% below last year for bookings, but stable compared to pre-Covid numbers. Happy to look at a revenue forecast and comps in the area If you are looking for a 5+ bedroom single family home. Can recommend some great realtors too. 

    mytriphaus.com
    2Reply
  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    I think Davenport is a great area to invest in right now. I have seen a lot of growth lately in any city between Tampa and Orlando. Davenport is about 30 minutes from Disney, so I would recommend contacting Airbnb and Vrbo hosts in the area and getting feedback from them. If you do end up buying a property for short-term rental, make sure it works as a long-term rental as well, that way you have a safe exit strategy.

    3Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
    3y

    @Israel Mendiola You are getting some mixed signals here. I live here and work in this area and have sold dozens of STR in Davenport/Kissimmee. You do need to be in the right community if you are looking for strictly cash flow. If you plan to use it yourself, use it as a write-off or something else, you'll have more options.

    There are resort communities like Championsgate, Windsor Island, Solara and several other top tier resort style communities that are literally built to be STR without fear of the HOA or city retaliating against you like is happening all over. You can go outside of these or pick a lessor amenitized or 'regular' community, but the numbers will likely not pan out.

    Happy to dive a little deeper on this if you like, there are a lot of nuances to understand about this market compared to others. Just PM me.

    Best of luck. 

    4Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Well I will just let @Shawn McCormick take this. I just glanced at the map and wasn't aware that Davenport was part of the whole Orlando/Disney metroplex.

    :)

    1Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 996 posts · 1k+ votes
    3y
    Quote from @Shawn McCormick:

    @Israel Mendiola You are getting some mixed signals here. I live here and work in this area and have sold dozens of STR in Davenport/Kissimmee. You do need to be in the right community if you are looking for strictly cash flow. If you plan to use it yourself, use it as a write-off or something else, you'll have more options.

    There are resort communities like Championsgate, Windsor Island, Solara and several other top tier resort style communities that are literally built to be STR without fear of the HOA or city retaliating against you like is happening all over. You can go outside of these or pick a lessor amenitized or 'regular' community, but the numbers will likely not pan out.

    Happy to dive a little deeper on this if you like, there are a lot of nuances to understand about this market compared to others. Just PM me.

    Best of luck. 

    Correct, there are a lot of generic responses in this thread that don't really apply to this particular market. For instance no one is buying a 9 bedroom themed home in Champions Gate for $1M with dreams that they can cashflow with it as an LTR if STR goes bad. And as you mentioned, the "Beware of HOAs" thing doesn't really apply here (at least in the resort neighborhoods) as these HOAs were created specifically for STR.

    Cosmic Vacations4.9174 Reviews
    WebsiteView Page
    2Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    Davenport is a Short Term Shop Market! Avery Carl’s team operates here. 

    Is it a good market for you? I think that depends on, well, you. Study the market and see if it fits you. Do you want to cater to families with young kids? Families who save for multiple years to go on this one trip that may be the only time they ever get to go to Disney? You have the chance to create some real magic for guests. 

    As far as numbers go, use the enemy method. See what other properties are doing to get a look at their income. Check out reviews of properties in resorts you’re interested in. See if guests like that particular resort. 

    2Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes
    3y
    Quote from @Shawn McCormick:

    @Israel Mendiola You are getting some mixed signals here. I live here and work in this area and have sold dozens of STR in Davenport/Kissimmee. You do need to be in the right community if you are looking for strictly cash flow. If you plan to use it yourself, use it as a write-off or something else, you'll have more options.

    There are resort communities like Championsgate, Windsor Island, Solara and several other top tier resort style communities that are literally built to be STR without fear of the HOA or city retaliating against you like is happening all over. You can go outside of these or pick a lessor amenitized or 'regular' community, but the numbers will likely not pan out.

    Happy to dive a little deeper on this if you like, there are a lot of nuances to understand about this market compared to others. Just PM me.

    Best of luck. 

     @Israel Mendiola, as Shawn and others have stated, the Disney-focused market in Davenport is about supply and demand. Yes, there is a lot of supply but you can set your home apart and appeal to the vast Disney market by making the home unique. This can include original decorating choices and other factors like the view, location within the resort, orientation of the pool and much more.

    On the other hand you may want to consider some of the smaller resorts (in Kissimmee, not Davenport) that are closer to Disney. Windsor Hills, Emerald Island and Bella Vida to name a few. There, you'll find less traffic, a shorter drive to Disney and you may also find lower RE prices allowing for a higher decorating budget to set your home apart.

    Just food for thought...contact me if you would like to brainstorm or run some numbers.

    2Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    3y

    In general I think it is not a bad market as there are lower price points, taxes, etc.  However, that area many are reporting is too saturated.  Tampa area is still doing pretty decent IF you have a high quality product

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Michael Baum:

    Hey @Israel Mendiola. What would bring people to Davenport? It isn't really close to anything like the beach or Disney.

    Have you checked on AirBNB and VRBO to see what is in the area? What are their nightly rates, occupancy and amenities?

    Doing that will give you a good bit of info to see how it could perform.


    Thanks for your recommendations.
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Michael Elliott:

    @Michael Baum some areas are close to Disney but yes, some are very far! We are actually looking in the same area Davenport/Champions Gate and toured some houses the other day. Our surprise was that pictures and actual conditions are NOT the same! We were shocked at the difference some real estate agents put in their listings versus the condition of the house. It is obvious that they are using STR listing photos from a few years ago in the listing so be careful and make sure you visit any house you are thinking of buying @Israel Mendiola!


    Thanks for the heads up.
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Sarah Kensinger:

    From what I'm hearing from many people I would be very hesitant to invest in the Davenport/Orlando area. Not many are hitting the pinch point yet on their properties, but the bookings have dropped substantially. Yet on the other side of the state someone just lunched a STR and in the first couple of days has $20k+ in bookings for the rest of the year.


    Thanks for sharing!
    Can you please provide more information about the specific location you are referring to as "the other side of the state"?
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Zach Edelman:

    Very hit or miss from what I've heard as well. It has a similar flavor to other pureplay vacation markets in that there is a lot of demand, but also a lot of supply, so for you to perform well, separating yourself with a strong listing, and possibly some sort of niche, will be vital. 


    Got it, thanks!
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Account Closed:
    Quote from @Israel Mendiola:

    Hey friends,

    Could you please share your thoughts on investing in my first STR located in Davenport, FL?

    Thanks!

    Hi - we both invest and manage STR luxury vacation homes exclusively in the Davenport, FL and 34747 zip code area.

    Townhouses and condos won’t get you positive passive revenue you need in this area for a number of reasons, however the right house on the right street in the right resort, will be highly successful, regardless of the condition of the market. Speak with local pros who work here day in and out. 

    The market is around 10% below last year for bookings, but stable compared to pre-Covid numbers. Happy to look at a revenue forecast and comps in the area If you are looking for a 5+ bedroom single family home. Can recommend some great realtors too. 

    mytriphaus.com

    Thanks for your insights!
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Shawn McCormick:

    @Israel Mendiola You are getting some mixed signals here. I live here and work in this area and have sold dozens of STR in Davenport/Kissimmee. You do need to be in the right community if you are looking for strictly cash flow. If you plan to use it yourself, use it as a write-off or something else, you'll have more options.

    There are resort communities like Championsgate, Windsor Island, Solara and several other top tier resort style communities that are literally built to be STR without fear of the HOA or city retaliating against you like is happening all over. You can go outside of these or pick a lessor amenitized or 'regular' community, but the numbers will likely not pan out.

    Happy to dive a little deeper on this if you like, there are a lot of nuances to understand about this market compared to others. Just PM me.

    Best of luck. 


    Appreciate your comment. Thanks!
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Brooklyn McCarty:

    Davenport is a Short Term Shop Market! Avery Carl’s team operates here. 

    Is it a good market for you? I think that depends on, well, you. Study the market and see if it fits you. Do you want to cater to families with young kids? Families who save for multiple years to go on this one trip that may be the only time they ever get to go to Disney? You have the chance to create some real magic for guests. 

    As far as numbers go, use the enemy method. See what other properties are doing to get a look at their income. Check out reviews of properties in resorts you’re interested in. See if guests like that particular resort. 


    Yeap! It is my understanding that Avery Carl’s team operates there.
    Thanks for sharing your thoughts.
    1Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Alice Horn:
    Quote from @Shawn McCormick:

    @Israel Mendiola You are getting some mixed signals here. I live here and work in this area and have sold dozens of STR in Davenport/Kissimmee. You do need to be in the right community if you are looking for strictly cash flow. If you plan to use it yourself, use it as a write-off or something else, you'll have more options.

    There are resort communities like Championsgate, Windsor Island, Solara and several other top tier resort style communities that are literally built to be STR without fear of the HOA or city retaliating against you like is happening all over. You can go outside of these or pick a lessor amenitized or 'regular' community, but the numbers will likely not pan out.

    Happy to dive a little deeper on this if you like, there are a lot of nuances to understand about this market compared to others. Just PM me.

    Best of luck. 

     @Israel Mendiola, as Shawn and others have stated, the Disney-focused market in Davenport is about supply and demand. Yes, there is a lot of supply but you can set your home apart and appeal to the vast Disney market by making the home unique. This can include original decorating choices and other factors like the view, location within the resort, orientation of the pool and much more.

    On the other hand you may want to consider some of the smaller resorts (in Kissimmee, not Davenport) that are closer to Disney. Windsor Hills, Emerald Island and Bella Vida to name a few. There, you'll find less traffic, a shorter drive to Disney and you may also find lower RE prices allowing for a higher decorating budget to set your home apart.

    Just food for thought...contact me if you would like to brainstorm or run some numbers.


    Thank you so much!
    0Reply
  • Israel Mendiola
    OP
    Member since 2019 · 31 posts · 12 votes
    3y
    Quote from @Andrew Steffens:

    In general I think it is not a bad market as there are lower price points, taxes, etc.  However, that area many are reporting is too saturated.  Tampa area is still doing pretty decent IF you have a high quality product


    Thanks! Yeah! But I heard that the regulations have recently been tightened in Tampa for STRs, isn't it?
    0Reply
  • Napoleon DeCiutiis
    Real Estate Agent · The Short Term Shop / Florida Emerald and Forgotten Coasts · Member since 2022 · 217 posts · 126 votes
    3y
    Quote from @Israel Mendiola:

    Hey friends,

    Could you please share your thoughts on investing in my first STR located in Davenport, FL?

    Thanks!


    Israel,  What do your numbers say? Let them help drive your decision. We are in that market for a reason!  Contact the Short Term Shop and have them set you up with one of our agents on the ground there! Keep us updated on your progress here on the forum! 

    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y
    Quote from @Israel Mendiola:
    Quote from @Sarah Kensinger:

    From what I'm hearing from many people I would be very hesitant to invest in the Davenport/Orlando area. Not many are hitting the pinch point yet on their properties, but the bookings have dropped substantially. Yet on the other side of the state someone just lunched a STR and in the first couple of days has $20k+ in bookings for the rest of the year.


    Thanks for sharing!
    Can you please provide more information about the specific location you are referring to as "the other side of the state"?
    I believe it was St. Lucie, FL
    [email protected]330-557-3021
    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    3y
    Quote from @Israel Mendiola:
    Quote from @Andrew Steffens:

    In general I think it is not a bad market as there are lower price points, taxes, etc.  However, that area many are reporting is too saturated.  Tampa area is still doing pretty decent IF you have a high quality product


    Thanks! Yeah! But I heard that the regulations have recently been tightened in Tampa for STRs, isn't it?

    No that is not true - per FL state law jurisdictions cannot add or amend STR laws

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
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