Orlando Short Term Rental
Investor · Windham, ME · Member since 2016 · 180 posts · 37 votes
Orlando Short Term Rental
Most Popular Reply
Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes
7yOriginally posted by @Matthew Wright:
@Michael Peach Probably a 20% down scenario. Even if it just carries itself, Id be pleased.
Hi Matthew, all of this is just my opinion so take it with a pinch of salt but if I was in your position this is what I would be thinking/doing. I can't cover everything but I will attempt to summarize.
Having the condo wash it's face is your target and if you do better than that be very happy. With financing most people will be losing money. When you speak to other owners they will never tell you that, but they are.
I would be looking to find a unit that I can add value to with new paint, kitchen upgrade, better furniture etc. As many bedrooms as my price point allows and as close to Disney as possible, Windsor Hills, Windsor Palms or similar near there. Preferably south facing balcony with some sort of view. (Guests will probably never go out there but it looks good in photos.)
Except in general terms I would disregard any specific booking information from the current owner. There are a multitude of reasons why your experience will be different.
DO NOT USE A FULL SERVICE MANAGEMENT COMPANY. 90% chance you will not make money. I don't care if you look at their calendars and they have more bookings. The owner is only getting a fraction of that money and their unit is high traffic (Getting beat up.)
Once you find a suitable condo get to work. Families are your target. Mom will check the kitchen, dad will check the TV/lounge, kids will check their space, the bedrooms and the pool. Make the place as special as you can on your budget. Granite counters, new appliances, big flat screen TV, fast internet, themed kids bedrooms with XBox/Playstation etc. Make everything as new as possible and do not over personalize.
Get yourself registered for taxes, PAY YOUR OWN BILLS (It is the best way to check if anyone has been in the unit you don't know about.) I would personally get a small mom and pop management company but if you can find a reliable cleaner and handyman who will go to the unit at a drop of a hat for you by all means give it a go.
When the condo is ready have photos done. DO NOT SKIMP ON PHOTOS! (I know a great guy if you want his details) Photos sell your unit.
Learn how to book your own condo out, listing sites, social media, off line marketing etc. Learn seasons (TIP: follow Disney), pricing etc. This is your business, treat it as such. Marketing etc is a huge subject so learn it yourself.
IF YOU AND YOUR FAMILY ARE COMING TO DISNEY DO NOT COME AT PEAK TIMES. Give your kids a week off from school and come after the first week of January or May or September. Also DO NOT DISCOUNT FAMILY MEMBERS OR FRIENDS especially if they are coming at peak times. They have to understand you have expenses.
Hopefully you will be successful but if you're not don't find a full service management company to take the pressure off. You will still most likely be losing money. If you stop enjoying it and it isn't working either sell the condo (Which you should be able to do as you have added value previously) or flip it over to LTR. (You will be inundated with LTR inquiries as Disney staff need to be near work)
Remember that new homes look great but you will be paying a premium (Unless you can get one where a deal has fallen through maybe.) and it will never look better than the first day you own it.
This is all general advice and opinion but it is what I would do.
HTH.
Oh, and if you are sitting reading this thinking, "That's a lot of work" then don't do it. Just book your vacation in someone else's condo. :)
53 Replies
- Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes7y
@Michael Peach Cynicism/realism is welcomed here. Unless it involves real things that I have mentioned in past STR posts that I can't mention again because they will get deleted again.
The road for travelling workers is pretty rough, all kinds of unsavory women and men are on that path. The stuff that happens that I write about is what BP deletes.
- Investor · Windham, ME · Member since 2016 · 180 posts · 37 votes7y
@Michael Peach Probably a 20% down scenario. Even if it just carries itself, Id be pleased.
- Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes7y
Originally posted by @Matthew Wright:
@Michael Peach Probably a 20% down scenario. Even if it just carries itself, Id be pleased.
Hi Matthew, all of this is just my opinion so take it with a pinch of salt but if I was in your position this is what I would be thinking/doing. I can't cover everything but I will attempt to summarize.
Having the condo wash it's face is your target and if you do better than that be very happy. With financing most people will be losing money. When you speak to other owners they will never tell you that, but they are.
I would be looking to find a unit that I can add value to with new paint, kitchen upgrade, better furniture etc. As many bedrooms as my price point allows and as close to Disney as possible, Windsor Hills, Windsor Palms or similar near there. Preferably south facing balcony with some sort of view. (Guests will probably never go out there but it looks good in photos.)
Except in general terms I would disregard any specific booking information from the current owner. There are a multitude of reasons why your experience will be different.
DO NOT USE A FULL SERVICE MANAGEMENT COMPANY. 90% chance you will not make money. I don't care if you look at their calendars and they have more bookings. The owner is only getting a fraction of that money and their unit is high traffic (Getting beat up.)
Once you find a suitable condo get to work. Families are your target. Mom will check the kitchen, dad will check the TV/lounge, kids will check their space, the bedrooms and the pool. Make the place as special as you can on your budget. Granite counters, new appliances, big flat screen TV, fast internet, themed kids bedrooms with XBox/Playstation etc. Make everything as new as possible and do not over personalize.
Get yourself registered for taxes, PAY YOUR OWN BILLS (It is the best way to check if anyone has been in the unit you don't know about.) I would personally get a small mom and pop management company but if you can find a reliable cleaner and handyman who will go to the unit at a drop of a hat for you by all means give it a go.
When the condo is ready have photos done. DO NOT SKIMP ON PHOTOS! (I know a great guy if you want his details) Photos sell your unit.
Learn how to book your own condo out, listing sites, social media, off line marketing etc. Learn seasons (TIP: follow Disney), pricing etc. This is your business, treat it as such. Marketing etc is a huge subject so learn it yourself.
IF YOU AND YOUR FAMILY ARE COMING TO DISNEY DO NOT COME AT PEAK TIMES. Give your kids a week off from school and come after the first week of January or May or September. Also DO NOT DISCOUNT FAMILY MEMBERS OR FRIENDS especially if they are coming at peak times. They have to understand you have expenses.
Hopefully you will be successful but if you're not don't find a full service management company to take the pressure off. You will still most likely be losing money. If you stop enjoying it and it isn't working either sell the condo (Which you should be able to do as you have added value previously) or flip it over to LTR. (You will be inundated with LTR inquiries as Disney staff need to be near work)
Remember that new homes look great but you will be paying a premium (Unless you can get one where a deal has fallen through maybe.) and it will never look better than the first day you own it.
This is all general advice and opinion but it is what I would do.
HTH.
Oh, and if you are sitting reading this thinking, "That's a lot of work" then don't do it. Just book your vacation in someone else's condo. :)
- New York City, NY · Member since 2016 · 470 posts · 348 votes7y
Originally posted by @Michael Peach:
Originally posted by @Matthew Wright:
@Michael Peach Probably a 20% down scenario. Even if it just carries itself, Id be pleased.
Hi Matthew, all of this is just my opinion so take it with a pinch of salt but if I was in your position this is what I would be thinking/doing. I can't cover everything but I will attempt to summarize.
Having the condo wash it's face is your target and if you do better than that be very happy. With financing most people will be losing money. When you speak to other owners they will never tell you that, but they are.
I would be looking to find a unit that I can add value to with new paint, kitchen upgrade, better furniture etc. As many bedrooms as my price point allows and as close to Disney as possible, Windsor Hills, Windsor Palms or similar near there. Preferably south facing balcony with some sort of view. (Guests will probably never go out there but it looks good in photos.)
Except in general terms I would disregard any specific booking information from the current owner. There are a multitude of reasons why your experience will be different.
DO NOT USE A FULL SERVICE MANAGEMENT COMPANY. 90% chance you will not make money. I don't care if you look at their calendars and they have more bookings. The owner is only getting a fraction of that money and their unit is high traffic (Getting beat up.)
Once you find a suitable condo get to work. Families are your target. Mom will check the kitchen, dad will check the TV/lounge, kids will check their space, the bedrooms and the pool. Make the place as special as you can on your budget. Granite counters, new appliances, big flat screen TV, fast internet, themed kids bedrooms with XBox/Playstation etc. Make everything as new as possible and do not over personalize.
Get yourself registered for taxes, PAY YOUR OWN BILLS (It is the best way to check if anyone has been in the unit you don't know about.) I would personally get a small mom and pop management company but if you can find a reliable cleaner and handyman who will go to the unit at a drop of a hat for you by all means give it a go.
When the condo is ready have photos done. DO NOT SKIMP ON PHOTOS! (I know a great guy if you want his details) Photos sell your unit.
Learn how to book your own condo out, listing sites, social media, off line marketing etc. Learn seasons (TIP: follow Disney), pricing etc. This is your business, treat it as such. Marketing etc is a huge subject so learn it yourself.
IF YOU AND YOUR FAMILY ARE COMING TO DISNEY DO NOT COME AT PEAK TIMES. Give your kids a week off from school and come after the first week of January or May or September. Also DO NOT DISCOUNT FAMILY MEMBERS OR FRIENDS especially if they are coming at peak times. They have to understand you have expenses.
Hopefully you will be successful but if you're not don't find a full service management company to take the pressure off. You will still most likely be losing money. If you stop enjoying it and it isn't working either sell the condo (Which you should be able to do as you have added value previously) or flip it over to LTR. (You will be inundated with LTR inquiries as Disney staff need to be near work)
Remember that new homes look great but you will be paying a premium (Unless you can get one where a deal has fallen through maybe.) and it will never look better than the first day you own it.
This is all general advice and opinion but it is what I would do.
HTH.
Oh, and if you are sitting reading this thinking, "That's a lot of work" then don't do it. Just book your vacation in someone else's condo. :)
Ha! Or just buy from @Avery Carl in E TN - the numbers work better there
- Rental Property Investor · Kissimmee, FL · Member since 2019 · 25 posts · 14 votes7y
@Michael Peach Great summary Michael. What you say has been pretty much my experience spot on. The only consideration I will add, is that I will finance my next deal, trying to pay it off in 15 years. If I can get positive cash flow and service the finance, in 15 (that will make me 65) it will serve its purpose. My BHAG is to get enough of these online to give me a part time job (management) and a good cash flow at that time.
I'd like to hear more about your value add for units. The market is so tight that I am finding it impossible to find large value adders. Yes there's always the amenities and the fun touches which DO make a difference, but I keep hoping for something that would fit a BRRR (even for a STR) and I just don't think you find them unless you are really plugged into the real estate market locally.
- Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes7y
@Eric P. I'll have a look.
- Investor · Windham, ME · Member since 2016 · 180 posts · 37 votes7y
@Michael Peach
Thanks for the input, the fine details are helpful.
- Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes7y
@Carter F. I think once you have modernized the unit and brought it up to date the value adds are mainly to make it easier to rent, increase rental revenue and set your unit apart from others. This does not necessarily increase the value of the property per se but makes it easier to sell by having a busy list of bookings and a great looking unit when the time comes.
Best of luck with the BHAG!
- Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes7y
Originally posted by @Matthew Wright:
@Michael Peach
Thanks for the input, the fine details are helpful.
No problem Matthew. Let me know if you need my opinion on anything else. :)
- boston, MA · Member since 2019 · 45 posts · 6 votes7y
@Michael Peach great info thanks! Do you have any of these mom and pop sort of management companies to recommend? I looked into a few of the full service shops you mentioned and after all in fees theyre getting you for ~25% which makes it almost impossible to turn a profit
- Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes7y
Originally posted by @Thomas Dunleavy:
@Michael Peach great info thanks! Do you have any of these mom and pop sort of management companies to recommend? I looked into a few of the full service shops you mentioned and after all in fees theyre getting you for ~25% which makes it almost impossible to turn a profit
I've messaged you Thomas.
- Rental Property Investor · Tacoma, WA · Member since 2019 · 1 post · 1 vote7y
@Matthew Wright Try the Grove Resort and Spa. You’ll be successful there.
- Residential Real Estate Broker · Palm Beach, FL · Member since 2016 · 1 post · 0 votes7y
@Jonathan Reed have you purchased a STR at the Grove Resort?
- New York, NY · Member since 2017 · 4 posts · 0 votes7y
I agree w/mr peach, purchased a 5/4 in windsor hills, good contractors, vendors are hard to come by, i went through 3 prop, mgmt co., before deciding to self manage from new york. Found good cleaning co., good handy man And i am handling taxes through Alvara. This is tough work, but rewarding, ASK FOR References and check them, i have found leads through checking references.. if self managing you will need to find a”local contact” via a cleaning co., or prop mgmt co., stay away from prop mgmt co., as per Ocecola County.,
- Investor · Victoria, MN · Member since 2016 · 93 posts · 31 votes7y
@Sid Payne - I’m researching STRs near Disney and have seen your name pop up a few times. I’m really curious what the current regulatory environment is in that area. Also, in general what is a good estimate for occupancy and if you self-manage or use local mgmt.
Looking mostly at SFHs with 4+ bedrooms and a pool.
Appreciate any insight!!
Craig
- 6yKyle MccawBusiness MemberProperty Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
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McCaw Property Management4.4902 Reviews - [email protected] · Member since 2020 · 18 posts · 2 votes6y
@Michael Peach thank you for your info, but why you are stick with the condo, if there is any reason you do not prefer townhouses or houses
thank you
- Novi, MI · Member since 2015 · 8 posts · 2 votes6y
So here we are, some time after this discussion started. Prices are even higher now. The theme parks are closed- and won’t be open at full capacity for months. There is so much inventory on the market, but most are listed above comparable sales from a few months ago. Some prices have been cut to be mild values- based on the 2019 economy but still nothing coming close to representing the current economic conditions. Will this market correct a bit? Will it crash? Will it stay frozen high? What do you guys think?
BTW- There is a potential BRRR condo on the MLS in Reunion right now. 60k under comps. No idea how much work is required though. - Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes6y
Originally posted by @Tom Herzog:
So here we are, some time after this discussion started. Prices are even higher now. The theme parks are closed- and won’t be open at full capacity for months. There is so much inventory on the market, but most are listed above comparable sales from a few months ago. Some prices have been cut to be mild values- based on the 2019 economy but still nothing coming close to representing the current economic conditions. Will this market correct a bit? Will it crash? Will it stay frozen high? What do you guys think?
BTW- There is a potential BRRR condo on the MLS in Reunion right now. 60k under comps. No idea how much work is required though.I think a lot of the sellers are fishing to see if they can cash out at high prices with everyone counting on things going right back to the way they were pre-virus. The saying "Pigs get fat, hogs get slaughtered" really applies here; I offered a deal on a place and came up to my maximum all-in, and they wouldn't come down $2500 to make the deal. Despite the fact that I was already reaching, and the sale price was going to be at/above comps from just before the virus when everything was going gangbuster, and the property might not even have appraised. So I walked.
What's on the market now is either people who just want to see what they might be able to get or a few really desperate people that have to sell right now. Most everything else isn't even on the market, which is keeping inventory really low. So even though there's no buyers, there's no sellers either. I imagine a lot of realtors are starving to death right now.
Skyline Properties - Lender · Tampa, FL · Member since 2018 · 149 posts · 102 votes6y
@Tom Herzog
I think the markets a bit different in Orlando since so many people that own these homes are foreign investors that rarely ever see them they are more of a way to park money in the us. So you see a lot of them for sell but at high prices so they only will sell if they can get that number. That was my experience I noticed when I shopping before I purchased my home there. I made at least 10 offers before I found someone that wanted to play ball.
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