Rental Property Investor · Philadelphia, PA · Member since 2016 · 9 posts · 4 votes
Hello BP community! I'm wondering if anyone has any experience owning a property near Disney for the sole purpose of renting it out on Airbnb? I have used Airbnb for my travel accommodation but never hosted. I live and work in the area, so I would look to manage it myself and just hire cleaners. Searching my Airbnb app for the equivalent of what I'd buy, there seems to be a lot of competition but when I check these properties' availability calendar, many are nearly full. Is this a reliable way to determine demand? Also, do you have to pay the sales tax and bed tax? Any insight would be much appreciated!
Real Estate Agent / Investor · Orlando, FL · Member since 2015 · 49 posts · 36 votes
7y
@Joann Lim, Fairview Shores is a real residential neighborhood. The city of Orlando, and some of the outlining areas have strict regulations on Airbnb's in residential areas. In addition, like @Shawn G. mentioned, personally, I wouldn't Airbnb in this neighborhood. I feel a lot like @Ken Latchers, I have a genuine passion for STR. Although I am making a great profit, I am serious about how I manage my STR and treat it as a business. I am VERY hands on and take each guest visit personal. As a real estate agent in Orlando, I usually suggest that Buyer's sit down and explain to me why they want to own and how their lifestyle plays into owning a specific property in Central Florida. Joann, what are your goals for ownership in Orlando? Are YOU planning on being hands on with LTR or STR? Are you going to be living here? Are you planning to manage the property yourself? Lastly, like Ken suggested, there are great resources out there to do good, solid market research. You definitely need a game plan and to understand what you are trying to achieve.
Rental Property Investor · London, United Kingdom · Member since 2019 · 10 posts · 2 votes
7y
@Kaynea Bingham
Hi Everyone,
Thanks for all the good advice.
I'm an expat in the UK and would like to invest in the Orlando area but don't know much about it other than it being a tourist town. I found a place in the Fairview Shores area is this area too far to bring in high yields for a STR? TIA
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
7y
I am not a fan of being far from my STRs, and I bought one of my buildings from someone in North Ireland who was tired of being somewhat helpless being so far removed from his place.
I would suggest you run your proposed property and area through mashvisor, airdna, Airbnb, VRBO to get an idea. They will give you estimates on projected revenue. Look at similar properties on listing sites at their future prices and calendars. They are imperfect, but it will give you a sense.
There is always a market, even if small, not far from you. I purchase low cost properties in reasonably visited towns with reasonable prices. I believe I make more than the average return than hot markets like the Smokies, Florida, etc. I gross $70k+ on a $135k purchase and approx $130k on a $280k purchase.
I pay no prop manager and manage them both. I live a block from each.
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
7y
I don't do vacation rentals just for the money... I have enough. The focus only on money won't keep someone out of the graveyard. It is the journey as much as the destination. As some say, a life well lived.
I do them also for the experience. I like finding them, I like staging them, I like theming them, I like prepping them, I like automating them, optimizing them, running them, interacting with guests at times, providing an amazing experience.
It is part of the reason I am concerned what we say that draws the inexperienced in. The focus on Arbitrage, scaling rapidly, easy riches, remote, PMS, "works for me" is tiring.
It is not about profit. It is about risk adjusted profit. There are no guarantees in STR, especially for newbs.
Every building is one meth lab, one disaster, one delisting, one dishonest/disastrous PM, insurers who will no longer cover old wiring, one sudden change in regulations, one set of neighbors upset by several parties at your place, slammed by a series of bad reviews, a surge of rentals driving rents way down, etc away from severe trouble. As in Gatlinburg fires or CA earthquake or a FL SINKHOLE or some idiot installs hidden cams in your place, etc.
I don't do vacation rentals just for the money... I have enough. The focus only on money won't keep someone out of the graveyard. It is the journey as much as the destination. As some say, a life well lived.
I do them also for the experience. I like finding them, I like staging them, I like theming them, I like prepping them, I like automating them, optimizing them, running them, interacting with guests at times, providing an amazing experience.
It is part of the reason I am concerned what we say that draws the inexperienced in. The focus on Arbitrage, scaling rapidly, easy riches, remote, PMS, "works for me" is tiring.
It is not about profit. It is about risk adjusted profit. There are no guarantees in STR, especially for newbs.
Every building is one meth lab, one disaster, one delisting, one dishonest/disastrous PM, insurers who will no longer cover old wiring, one sudden change in regulations, one set of neighbors upset by several parties at your place, slammed by a series of bad reviews, a surge of rentals driving rents way down, etc away from severe trouble. As in Gatlinburg fires or CA earthquake or a FL SINKHOLE or some idiot installs hidden cams in your place, etc.
Real Estate Agent / Investor · Orlando, FL · Member since 2015 · 49 posts · 36 votes
7y
@Joann Lim, Fairview Shores is a real residential neighborhood. The city of Orlando, and some of the outlining areas have strict regulations on Airbnb's in residential areas. In addition, like @Shawn G. mentioned, personally, I wouldn't Airbnb in this neighborhood. I feel a lot like @Ken Latchers, I have a genuine passion for STR. Although I am making a great profit, I am serious about how I manage my STR and treat it as a business. I am VERY hands on and take each guest visit personal. As a real estate agent in Orlando, I usually suggest that Buyer's sit down and explain to me why they want to own and how their lifestyle plays into owning a specific property in Central Florida. Joann, what are your goals for ownership in Orlando? Are YOU planning on being hands on with LTR or STR? Are you going to be living here? Are you planning to manage the property yourself? Lastly, like Ken suggested, there are great resources out there to do good, solid market research. You definitely need a game plan and to understand what you are trying to achieve.
My goal is to buy and hold long term for cash flow in the states either via LTR or STR. I have a small family that would like to visit the Orlando on holiday 1-2 times a year and thought owning a STR would fit our immediate needs. As we live in the UK I would not be hands-on and would need a PM and team to assist me in this endeavour. Seems like you and @Ken Latchers both agree that it may be difficult owning and managing a STR while being in a different country.
Would it benefit us more to start with a LTR in the Orlando area and get my feet wet? TIA
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
7y
I bought a six family long term rental from a man in North Ireland. After some years, he got out because he felt helpless and beholden to a property manager.
That's part of the reason why I push back against some of the people here who make remote ownership sound so easy. It is almost always a bad idea for new s. Yes, if you ignore the many possible risks and problems...
Hello All! Jumping onto the thread, I was wondering if anyone had some insights as to the best areas to look into STR properties? I'm only slightly familiar with the Orlando area. Also, does anyone have experience with live in STR? (I.e. simply airbnbing out rooms in your residence?) I doubt that I have the capital to purchase a place for myself AND for an STR—unless I went through the option of going through a management agency and, as I live abroad, I gather that that's not the best option? On another note, do property management companies look kindly on only managing properties for half of the year? Any advice would be much appreciated!