Central Florida vacation rental

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Central Florida vacation rental

Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes

Is a vacation rental in Kissimmee / Davenport a bad idea?

Prices seem to be rising but there is so much inventory. Is it possible to make money on a mortgaged property? I’m thinking 4 bed pool home...

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Luke CarlPro Member

Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes

@R.J. Petrillo If you’re going to give up because one person you’ve never met told you it was a bad idea on the internet you’ll never get stated.

When people tell me it’s a terrible idea I generally take that as a sign that I’m on to something.

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Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y
lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in that environment?
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Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
6y
Originally posted by @Ken Latchers:
lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in that environment?

Maybe they are losing less money than if it sat empty or they were LTR properties.
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R.J. Petrillo
Rental Property Investor · Member since 2019 · 25 posts · 46 votes
6y
Originally posted by @Ken Latchers:
lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in that environment?
Yikes. Scratching that off my list for STR/Airbnb in the area.

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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
6y
So just playing devils advocate. If @Ken Latchers is doing a simple AirBNB room, then that is understandable. I doubt it is a 4 bedroom house with a pool for $25 a night.
I will agree that the area has lots of restrictions as well as a very competitive market.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
If evaluate different properties during the on season and see if it makes sense.
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Joey Morea
Lender · Tampa, FL · Member since 2018 · 149 posts · 102 votes
6y
@Phil Wrigley
Bang for your buck you can get a lot of property. I own a 7bedroom 3600sq ft house in champions gate I purchased at the end of June for 440k. There is a lot of competition but it also is the most visited destination in the us with 80 million travelers and only getting better with the enchantments to Disney. 3rd universal park and speculation of a 5th Disney park at some point. It’s all about theming of your property and how well the pictures look. Give Keith Courtney a call if you need a realestate agent.
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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
@R.J. Petrillo If you’re going to give up because one person you’ve never met told you it was a bad idea on the internet you’ll never get stated.
When people tell me it’s a terrible idea I generally take that as a sign that I’m on to something.
Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
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Phil Wrigley
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Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
I’ll check out those recommendations. Thanks guys! The homes themselves are cheap for what they are but judging by listings on Vrbo they seem to stack them high and sell them low for vacationers. 4 bed pool homes can be had for $99 per night (sometimes less) but on the flip side they do seem to be pretty booked out. One of the realtors I was chatting with told me that grossing $38 to $40k a year is not unrealistic but I’m skeptical... Has anyone ever tried this model? I saw some posts from back in 2014 that suggest it’s a real Struggle to make it work with a mortgage....

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Tyler GibsonBusiness Member
Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
6y
@Phil Wrigley I am a realtor here in Orlando and working with some folks looking at this. You are right there is a ton of inventory for STR in the area. Some of the communities require you to use them as management some don't. Some have huge HOA fees some don't. There are 4K+ people that travel through the Orlando Airport every day. There really isn't a slow season for Disney parks. Over the last few years Orlando has attracted some of the biggest events. Orlando hosts 3 NCAA bowl games every year, the NFL Pro Bowl, recently NCAA final four games, and EDC Orlando (huge electronic music festival). There is a major golf tournament hosted in Orlando every year (Arnold Palmer Invitational). This isn't including special events at Disney or Universal or the expansion that those parks are doing. All of this to say that Orlando is a huge destination and whole home rentals can do well you just need to have a place that has a wow factor either in amenities or in decoration. The photos have to outstanding and should have plenty of bookings.
[email protected]407-590-9858
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Kevin Dias
Member since 2019 · 7 posts · 2 votes
6y
Originally posted by @Ken Latchers:
lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in that environment?

I have been looking into this as well, Yes there are rooms available for 25-35 a night but they are dingy cheap motels/hotels in the area. I work at various vacation homes in central Florida and i do see a lot of families(international especially) using these homes. Don't be discouraged by the competition. My only worry is the economy having a major effect on the tourism in the Orlando/kissimmee area.
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Phil Wrigley
OP
Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
There is definitely appeal in the amount of tourism the area gets. I just don’t know how exactly I would get an edge over the competition in this market since there is just so much of it.... Some of the villas are poorly done, others have been well presented. Both seem to get at least some booking. I don’t know if there is an exact science behind it. Also, I’m nervous that a lot of people seem be selling their income properties. Why would they if they’re making good money? Just my thoughts! Lol
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Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
@Erica Muller is the queen of STR in the Disney market. She's got her finger on the pulse of everything and has been in the game longer than anyone. I don't know a lot about that market specifically but she would be the place to start to get the best information on it!
Podcast Guest on Show How to Get More Airbnb Bookings This Spring and Summer Break
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Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y

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Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y

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Phil Wrigley
OP
Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
@Avery Carl thank you! I’ll look up, Erica! I see you own a vacation rental business out of TN? How is that working out?
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Daniel Townsend
Flipper/Rehabber · Cincinnati, OH · Member since 2019 · 75 posts · 53 votes
6y
@Phil Wrigley I have been looking into that area as well. The only real edge is in marketing and advertising. Not just relying on the VRBO site but figuring out how you can funnel people to your properties.
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Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y
Funneling by trying to get traffic off of the internet is practically a Fool's errand. You cannot out spend booking.com and Airbnb and Flip key and VRBO. They dominate the first page which is the only one that matters.

SEO and PPC will not help vacation rental owner.

not sure what your point is, but you should be on all four of them and have your own website. All you have to do is set your prices to account for their commissions or added on as an admin fee which is what I do.

besides, they offer a lot of functionality and I'm not for sure why your time is so worthless that you try to compete with them. And advertising cost money anyway so you're not saving anything

Originally posted by @Daniel Townsend:
The only real edge is in marketing and advertising. Not just relying on the VRBO site but figuring out how you can funnel people to your properties.

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Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
@Phil Wrigley it’s going awesome, can’t complain!
Podcast Guest on Show How to Get More Airbnb Bookings This Spring and Summer Break
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Daniel Townsend
Flipper/Rehabber · Cincinnati, OH · Member since 2019 · 75 posts · 53 votes
6y
@Ken Latchers I guess I was thinking more out of the box marketing. In my area people will have mailers even billboards directing people to their vacation rentals. Take some add space in local theatre programs. Sponsor sporting events, etc... There are always more ways to market than just hoping your rentals will be seen in an ocean of ads.
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Phil Wrigley
OP
Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
@Tyler Gibson this is great advice. I worry about visibility in a market with so much inventory. Would you say a gross income of $40k on a 4 bed pool home is realistic if it’s done right? What are the peak times for the Disney market is it realistic to expect year round bookings? Sorry for all the questions!
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Tyler GibsonBusiness Member
Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
6y
@Phil Wrigley Someone else said $40k gross a year but I have heard similar numbers. There really is no slow season here in Orlando and at Disney specifically. I think it is realistic to expect bookings year round.
[email protected]407-590-9858
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Phil Wrigley
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Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
@Tyler Gibson Thanks, Tyler. I guess for me, buying a home that already had hard numbers showing a $40k income is what would be needed for me to confidently proceed....
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Joey Morea
Lender · Tampa, FL · Member since 2018 · 149 posts · 102 votes
6y
@Phil Wrigley
What price point are you looking at? Are you looking to self manage or use a PM?
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Phil Wrigley
OP
Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
@Joey Morea I am thinking under $250k for a 4/3 pool home and I’d likely use an online management company with a 10% commission rate...
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Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y

if your 10% Commission is something like evolve or vacasa, that is generally a waste of money. Should read some of the posts about them here. evolve charges your guests an additional high commission.
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