Short Term Rental opportunities in Kissimmee, FL
Member since 2023 · 5 posts · 2 votes
Short Term Rental opportunities in Kissimmee, FL
Most Popular Reply
Investor · Orlando, FL · Member since 2021 · 73 posts · 42 votes
2yHello @Tajinder S. we have a property in Windsor at Westside in Kissimmee. I would be happy to share our experience with you. Send me a DM if you would like to talk.
17 Replies
- 2yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
Hey Tajinder - we are HQ in Tampa but do manage properties in Kissimmee as well. IMHO Kissimmee is still a saturated market right now. There are potential opportunities but it is few and far between and you can find better returns in other markets. In Tampa it is still more than possible to cashflow, for an example.
Vacation Rentals of Florida53 Reviews - Real Estate Agent · Orlando, FL · Member since 2021 · 26 posts · 7 votes2y
Hi Tajinder,
You are correct that there is a lot of competition, however it also depends what you are looking for and your budget. The bigger properties within the resort style communities seem to do better. I'd be happy to help answer any questions you may have or help you find the right cash-flowing property.
- Investor · Orlando, FL · Member since 2012 · 312 posts · 165 votes2y
I have clients with townhomes who are beating out 5 and 6 bedroom houses. You just gotta know how to be the top 10 percentages of host. ;)
- 2yRaymond J. RodriguesBusiness MemberLender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
@Tajinder S., like @Andrew Steffens mentioned, the Orlando market is a bit saturated right now. If you go a little bit west towards the Tampa Bay Area, you may have better opportunity with a short term rental. If you would like to explore this area at all and see what it’s all about, reach out to @Josh Green. He is an investor/ investor focused agent that can assist you with running the numbers, finding a property and even managing it as well!
Helm Mortgage Corp.5126 Reviews - 2yShawn McCormickPro MemberRealtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
@Tajinder S. Kissimmee/Davenport can be a fantastic place to have a STR. I would recommend being in one of the resort communities. The locations, amenties and are what attract guests, we don't have mountains or oceans to look at, so being in a resort is key. They are specifically built to be STR and you won't have to worry about the HOA or city changing the rules on you.
The traffic coming to Orlando is around 70 million a year and with Universal opening Epic next year and Disney still expanding, you just can't beat it, they are bringing them to your doorstep. Once there, it is up to you to provide a great experience and have your home stand out against the many thousands of others.
2-5 bedroom units make up a little more than 40% of the inventory, while the 8-9 beds are around 12% (last I looked), so much less competition as far as units go with larger homes. That being said, it is hard to theme out a 4-5 bedroom home, so they tend to be more 'safe' or 'plain', while the owners of the bigger homes have more options to theme and make them stand out and put themselves away from the pricing wars because they have something more unique.
I've helped dozens of BP members purchase here, you can look up this topic as it is well talked about here. Happy to dive deeper on specific communities and anything else you may need.
Best of Luck!
- Investor · Orlando, FL · Member since 2021 · 73 posts · 42 votes2y
Hello @Tajinder S. we have a property in Windsor at Westside in Kissimmee. I would be happy to share our experience with you. Send me a DM if you would like to talk.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes2y
Quote from @Tajinder S.:
I'm new to the whole STR business, exploring my options to invest in a good market. Lately, I have been looking at the properties in Kissimmee, FL. AirDNA score is good but I see there is lot of variation in housing market there. Also, most of the house/townhouses are run like resort style with HOA fees and amenities. The other factor that I noticed is that ADR is low and pretty large inventory of 5 + bedrooms houses. Does anyone have experience in that market? I'm running few numbers and they all seem to be neutral or negative with regards to cash flow. I find the area is highly saturated but there are lot of houses in the market. Looking to get something that can cashflow and also can be used by myself few weeks in a year. Any suggestions/ comments would be appreciated.
This is a very tough market right now especially if you are buying at today's prices. There is a ridiculous amount of inventory and you are fighting price wars against people who bought their homes for $125k 10 years ago and can rent out a 4/3 with a pool for $99/ night. That's what you are fighting against unless you get into the 6+ bedroom properties. I have a very nice 4/3 3000sf in Four Corners and the last year+ has been pretty rough as far as vacancy figures. Now I don't have to rent my place at all, and I do use the property so it's not a big deal for me but if I needed my house to make money I'd have to sell because it's not there right now.
Skyline Properties - Member since 2023 · 5 posts · 2 votes2yHi Dan, I will love to connect as well.
Quote from @Dan Schriver:
Hi Tajinder,
You are correct that there is a lot of competition, however it also depends what you are looking for and your budget. The bigger properties within the resort style communities seem to do better. I'd be happy to help answer any questions you may have or help you find the right cash-flowing property.
- Member since 2023 · 5 posts · 2 votes2y
Quote from @JD Martin:
Quote from @Tajinder S.:
I'm new to the whole STR business, exploring my options to invest in a good market. Lately, I have been looking at the properties in Kissimmee, FL. AirDNA score is good but I see there is lot of variation in housing market there. Also, most of the house/townhouses are run like resort style with HOA fees and amenities. The other factor that I noticed is that ADR is low and pretty large inventory of 5 + bedrooms houses. Does anyone have experience in that market? I'm running few numbers and they all seem to be neutral or negative with regards to cash flow. I find the area is highly saturated but there are lot of houses in the market. Looking to get something that can cashflow and also can be used by myself few weeks in a year. Any suggestions/ comments would be appreciated.
This is a very tough market right now especially if you are buying at today's prices. There is a ridiculous amount of inventory and you are fighting price wars against people who bought their homes for $125k 10 years ago and can rent out a 4/3 with a pool for $99/ night. That's what you are fighting against unless you get into the 6+ bedroom properties. I have a very nice 4/3 3000sf in Four Corners and the last year+ has been pretty rough as far as vacancy figures. Now I don't have to rent my place at all, and I do use the property so it's not a big deal for me but if I needed my house to make money I'd have to sell because it's not there right now.
Thanks, JD, for the insight. I noticed something similar as well. ADR is very low for some of the properties with pool. I am outside the FL but feel area is going to grow more in next few years. I see the foot traffic increasing year on year.
- Member since 2023 · 5 posts · 2 votes2y
Quote from @Eric Starks:
Hello @Tajinder S. we have a property in Windsor at Westside in Kissimmee. I would be happy to share our experience with you. Send me a DM if you would like to talk.
Thanks Eric for connecting, appreciate the detailed insight.
- Member since 2023 · 5 posts · 2 votes2y
Quote from @Shawn McCormick:
@Tajinder S. Kissimmee/Davenport can be a fantastic place to have a STR. I would recommend being in one of the resort communities. The locations, amenties and are what attract guests, we don't have mountains or oceans to look at, so being in a resort is key. They are specifically built to be STR and you won't have to worry about the HOA or city changing the rules on you.
The traffic coming to Orlando is around 70 million a year and with Universal opening Epic next year and Disney still expanding, you just can't beat it, they are bringing them to your doorstep. Once there, it is up to you to provide a great experience and have your home stand out against the many thousands of others.
2-5 bedroom units make up a little more than 40% of the inventory, while the 8-9 beds are around 12% (last I looked), so much less competition as far as units go with larger homes. That being said, it is hard to theme out a 4-5 bedroom home, so they tend to be more 'safe' or 'plain', while the owners of the bigger homes have more options to theme and make them stand out and put themselves away from the pricing wars because they have something more unique.
I've helped dozens of BP members purchase here, you can look up this topic as it is well talked about here. Happy to dive deeper on specific communities and anything else you may need.
Best of Luck!
Shawn,
I would love to connect.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes2y
Quote from @Tajinder S.:
Quote from @JD Martin:
Quote from @Tajinder S.:
I'm new to the whole STR business, exploring my options to invest in a good market. Lately, I have been looking at the properties in Kissimmee, FL. AirDNA score is good but I see there is lot of variation in housing market there. Also, most of the house/townhouses are run like resort style with HOA fees and amenities. The other factor that I noticed is that ADR is low and pretty large inventory of 5 + bedrooms houses. Does anyone have experience in that market? I'm running few numbers and they all seem to be neutral or negative with regards to cash flow. I find the area is highly saturated but there are lot of houses in the market. Looking to get something that can cashflow and also can be used by myself few weeks in a year. Any suggestions/ comments would be appreciated.
This is a very tough market right now especially if you are buying at today's prices. There is a ridiculous amount of inventory and you are fighting price wars against people who bought their homes for $125k 10 years ago and can rent out a 4/3 with a pool for $99/ night. That's what you are fighting against unless you get into the 6+ bedroom properties. I have a very nice 4/3 3000sf in Four Corners and the last year+ has been pretty rough as far as vacancy figures. Now I don't have to rent my place at all, and I do use the property so it's not a big deal for me but if I needed my house to make money I'd have to sell because it's not there right now.
Thanks, JD, for the insight. I noticed something similar as well. ADR is very low for some of the properties with pool. I am outside the FL but feel area is going to grow more in next few years. I see the foot traffic increasing year on year.
The area is definitely growing, and if you can survive for several years while some of this inventory is eaten up by full-timers that are moving here, you can probably do pretty well over the long term. If you need it to make solid money right now you are probably in for a very rough ride. I'm in Four Corners and Windsor is building a brand new resort right across the street from me, which I actually expect to be advantageous to me - not only will our area become more familiar to people who come to stay, Windsor prices will be far and away higher than my prices for the same geographic location. But there will also be a certain population that want to stay on the resort areas, and I am hoping that drives more of the private mom & pop STRs out of business around here.
The biggest problem we have here is there are a lot of M&P operators who run junk STRs but bought so cheap they can price them cheap and even with sorry reviews there's always a market for inexpensive lodging. As these people start to sell off to harvest the high prices, they'll be selling to people who either live here full time or will have to STR their properties for much, much higher prices, and the rest of us that have good places won't have to compete with the bottom feeders.
Skyline Properties - Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes2y
Quote from @Tajinder S.:
I'm new to the whole STR business, exploring my options to invest in a good market. Lately, I have been looking at the properties in Kissimmee, FL. AirDNA score is good but I see there is lot of variation in housing market there. Also, most of the house/townhouses are run like resort style with HOA fees and amenities. The other factor that I noticed is that ADR is low and pretty large inventory of 5 + bedrooms houses. Does anyone have experience in that market? I'm running few numbers and they all seem to be neutral or negative with regards to cash flow. I find the area is highly saturated but there are lot of houses in the market. Looking to get something that can cashflow and also can be used by myself few weeks in a year. Any suggestions/ comments would be appreciated.
Hi Tajinder, while Orlando does have lot of STR inventory, the demand promises to grow even larger - especially with Epic Universe opening next year, the Brightline train now delivering folks from Miami, and many other factors which drive tourism. I would encourage you not to rely too heavily on AirDNA forecasts which are often inflated. I am happy to run revenue/occupancy reports an any home or community you're considering using our third-party software, and share my perspective as a property manager with homes in many Disney area communities. Reach out any time!
- Investor · Plymouth, MN · Member since 2020 · 157 posts · 102 votes2y
@Tajinder Singh we have had an STR for in the Orlando/Kissimmee area for 2 years now.
https://air.tl/8JKgVARj
The areas is super competitive and ADRs are are lowering, but the area does have a billion visitors a year. This is the property that needs the most amount of tweaks and attention to remain relevant.
And because is the competition helps to be in a good community with amenities near the parks, themed rooms, etc....
I wouldn't recommend the area if this is your first STR but If you already have an STR and are comfortable listing in all the channels and optimizing so you can be in the top 10-20pct then it can be a good market. And it's a fun place to vacation and spend 2 weeks a year.
- Realtor · Naples, FL · Member since 2020 · 16 posts · 6 votes2y
HI @Tajinder,
Currently, the vacation rental market in Orlando is not at its peak and a lot of homeowners are not doing as well as expected. This is good and bad news for you - the bad news is obvious, but the good news is that prices are lower and Sellers are more likely to negotiate right now, so you can get a better deal. A lot of Owners are shifting to renting the properties themselves, to save on the management commissions as well as the nickel and diming some property management companies do. You can also do that. I also have a No Commission Marketing Program for Orlando, which markets the units on all the major channels - Airbnb, vrbo, Expedia, Orbitz, Booking, Tripadvisor, Flipkey, HomesToGo, etc - iti si only $49 per reservation - you can find more about it here - ANSWERING YOUR QUESTIONS - Escala Vacation Rentals .
Since you will be doing vacation rentals, you will need to purchase a property in an area, which allows for that , and also make sure you have as many of amenities as possible - the house needs to be themed, you will have to have arcade games in it, foosball / pool table, multiple sleeping areas, private pool, access to fitness, lazy rivers, larger pools, etc. Since there is a lot of inventory of STR, it will be best if you can set yourself apart not only by purchasing with the right amenities, but also the right size. The 3 and 4 bedroom units are the most common, with each being about 22% of the market, followed by 2 bedrooms, 5 bedroom and 1 bedroom. I would suggest you shoot for something larger - 6+ bedroom, ideally over 10 bedrooms, where you can set yourself apart from the competition. If you can not afford something like that, my suggestion would be to be very aggressive with the rates and bank on volume. Once the market improves, the rates will go up and you will also have equity in the house, which will put you in a great position. There are certainly opportunities in the market, you just have to evaluate each and every one of them to make sure it works for you. I would be happy to generate financial projections for you for few properties and let you know what I think about them. I have been in the vacation rental industry for over 20 years and have been involved personally in 100s of thousands of reservations. I recently transitioned to more passive role - investing in real estate and have a portfolio of vacation rentals, long term rentals and commercial buildings across few different states.
My assumption here is that you would like to use the property for vacation rentals yourself so that is why you are looking to purchase it. If you are solely after the Cas Flow - it may be better for you to purchase brand new long term rentals in a different area in FL - possibly duplexes or SFH for about 9% Cap Rate. I have something in mind, so if you are interested - message me and I would be happy to share with you, as I do not people to feel that I am trying to sell them something here.
I hope you find this helpful.
- 2yJay BreitlowPro MemberProperty Manager · Orlando, FL · Member since 2020 · 138 posts · 85 votes
Good Counsel here @Michael Stoyanov. Well said. Altho the data I am seeing internal and via external sources in Orl on 6+ sized homes here is not trending well at all. 5BR and 4BR are showing better resilience... Subject to change but seeing the new inventory massive at 6BR+ and smaller travel parties i suspect the primary driver.
- Realtor · Naples, FL · Member since 2020 · 16 posts · 6 votes2y
Quote from @Jay Breitlow:
Good Counsel here @Michael Stoyanov. Well said. Altho the data I am seeing internal and via external sources in Orl on 6+ sized homes here is not trending well at all. 5BR and 4BR are showing better resilience... Subject to change but seeing the new inventory massive at 6BR+ and smaller travel parties i suspect the primary driver.
Thank you for the update @ Jay Breitlow . Interested to see if the trend continues.
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