STR in Orlando vs Other Florida Areas

[Noelle Maine]

I have been looking at buying either a Condo or a House in the Orlando/Davenport area for a STR. We were looking at this area primarily due to us vacationing in this area 3-5 times a year however I am getting the feeling that the market is over saturated and may not be the best investment area. I don't want to carry a non-cash/minimal cash flowing asset when there may be better performing areas. What other areas of Florida would you recommend I look at for cash flowing STR properties? Also concerned about homeowners insurance in this area so perhaps should look in a different state (NC or SC). Thank you.

[Shawn McCormick]

@Noelle Maine One of the big reasons buying a STR out of state is buying one in an are where you enjoy going. If you come to Orlando alot and will get good use out of the unit, that checks a big box. And being involved in your unit (maintenance, decor, repairs, guest experience) goes a long way to ensuring your success.

Orlando sees (currently) over 70 million visitors a year and with EPIC theme park just opening last week, next years numbers are sure to increase. So we do have more units than anywhere for good reason. You do have to be better than hotels and other units to stand out, get the reviews you need and offer what your competitors can't/won't. Other markets seem to be dwindling and over regulating, where Kissimmee/Davenport embrace STR. We are literally built for it.

I would second @John Underwood in saying to stay away from condos. They are too plentiful, the HOA will eat up all profit and you are directly competing with thousand of other small units and thens of thousands of hotel rooms.

You can cash flow here, but you make your money when you buy. Buy a unit in a great community and close to the parks, either commit to being the best host or hire the best PM and you can do it. 

Best of luck