Lender · Tampa, FL · Member since 2018 · 149 posts · 102 votes
6y
@Phil Wrigley
I think you could find something in that range but would plan to spend some money on updating it and theming it up some if you want to maximize the rental. Something in that price point is probably going to be a bit beat up or need some renovating. Make sure you are looking at resort community’s that cater and are zoned for short term rentals in Osceola county.
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y
First of all, you can reduce short term rental income by 30% because of the many expenses. That does not include Property Management. So 40,000 is really worth maybe 30000 as compared to long-term rentals. You can easily make 30,000 gross on a $250,000 property just by buying older properties in areas with high long-term rent
return on a property has three main inputs. The purchase price and the gross and all the stuff in the middle you need to do to make it work.
I bought two properties with about eight units that turned out to be on the wrong side of a vacation town. Did it really do that well, so after a few months I went to my backup plan which was furnished rentals.
together the properties were about 415000. i am almost done being on track to gross about 100k LONGTERM rentals. that would translate to perhaps 130000 short term rentals if you self managed!
Lender · Tampa, FL · Member since 2018 · 149 posts · 102 votes
6y
@Ken Latchers
Why are you always negative to people's ideas but never actually share where you like to invest? Maybe he is looking for a lifestyle asset that he can use at times while also having the income of a STR. I know that is why I prefer STR. Also the benifits that come with not worrying about evictions and other things that you have to worry about with a LTR.
40k gross on a 250 investment is pretty good even at 30k with expenses that's still over 10% with the Benifits that you have access to your property whenever you like. Also a STR will tend to appreciate more since it will be in a vacation destination.
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y
i am not negative to anyones ideas. I am negative to not thoroughly understanding, assessing and making good longterm decisions when getting an asset that costs 100s of thousands. And understanding highest and best use. And risk adjusted reward.
Most wise people coming here are not looking for a pat on the back. They want serious input.
the 40, 30 you said can become half that in some years as people flood into the game.
I say much about my preferences. I dont feel like copy and pasting the text of a thousand posts here.
Why are you always negative to people's ideas but never actually share where you like to invest? Maybe he is looking for a lifestyle asset that he can use at times while also having the income of a STR. I know that is why I prefer STR. Also the benifits that come with not worrying about evictions and other things that you have to worry about with a LTR.
40k gross on a 250 investment is pretty good even at 30k with expenses that's still over 10% with the Benifits that you have access to your property whenever you like. Also a STR will tend to appreciate more since it will be in a vacation destination.
Paducah, KY · Member since 2016 · 75 posts · 45 votes
6y
@Phil Wrigley we’ve looked at it a hundred times. Have been down through there and Winter Garden with agents, looked at both condos and houses. Floridays in Orlando was the closest we got. We too looked at the $250k price range- the houses in that range were nothing to right home about but the condos were good. Our biggest regret in real estate was not buying a condo there in 2010 after the crash. We were scared- new to investing, but in retrospect it was the right time to buy. So for me, I’m waiting until a dip in economy before I look again. The numbers now don’t make sense to me- the risk isn’t worth the reward. Some may argue there might not be a dip or we might not see condos this cheap again- I argue - so what, I’m not missing anything real special. I’m not interested in only making 10% return, if was would hit the easy button put in market and go on.
Paducah, KY · Member since 2016 · 75 posts · 45 votes
6y
Further more- I could take that same money in my
local market and invest in residential properties where I have more control over cost, tenants, ect- and with the extra money I make each year visit Florida and it pay for my trip :)
Real Estate Agent · Tampa Florida · Member since 2013 · 630 posts · 303 votes
6y
I have a client that lives in Missouri, he owns a 4 bed 3 bath, pool home in Davenport. He does AirBNB. His costs per month are around $3600 and he brings in an average of $6000 during slow season. So he is always making at least $1400 a month off of one home. If he did LTR then he wouldn't even be able to pay his mortgage. He enjoys the revenue but its not for everyone.
Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
Mya, would you say that kind of income is typical? I hear such mixed stories about the vacation rental market down there - some are making a killing and others not even making ends meet...
Real Estate Agent · Tampa Florida · Member since 2013 · 630 posts · 303 votes
6y
You have to be smart about. Keep prices competitive, make your cleaning fee cover cleaning and make you some money. The property has to be one that people want to stay at. Offer family type stuff to attract families, offer coffee in the kitchen, beach towels, and anything that can set you apart from other listings. Everything goes on your reviews. You have one bad one and it kills your profit. Offer bikes or beach supplies. Be prepared to lose stuff. I have a boat that I AirBNB out and make $1500 a month for 300 sq feet of space. That's during the winter and storm season. You have to manage it right. Always communicate with guests and make yourself available. You can also just hire someone to manage it.
Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes
6y
Of course there is a slow season. May and September are really quiet. You have a longer season but to say there are no downtimes is just wrong. @Phil Wrigley the short answer is yes you will find it very difficult to cashflow a VR in this area and have financing. It is not impossible but it will involve a lot of work on your part, this is not passive investment.
If you buy new and use a full service service management company the chances are someone like me will be looking to pick up your house on the cheap in a few years time.
STR is very different from LTR, with STR you are in the entertainment business and will have demanding guests. It is much more hands on.
Get it right and you can succeed, follow the herd and you probably won't.
Real Estate Broker · Kissimmee, FL · Member since 2016 · 35 posts · 25 votes
6y
@Mya Toohey I would like to meet your friend who makes $6000 per month in slow season. Net $200 per night for 30 nights or net $300 for 20 nights? Not saying he isn't but I am very curious as to the community, standard of house, nights booked, revenue per night etc etc.
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
6y
I take claims like this with a great deal of salt. I know somebody that... does not hold much meaning to me. There's a lot of variables a lot of changes coming and a lot of competition. And how do you verify all the realities of a claim like this?
@Mya Toohey I would like to meet your friend who makes $6000 per month in slow season. Net $200 per night for 30 nights or net $300 for 20 nights? Not saying he isn't but I am very curious as to the community, standard of house, nights booked, revenue per night etc etc.
Real Estate Agent · Tampa Florida · Member since 2013 · 630 posts · 303 votes
6y
Ok, so, if you read my post correctly, it states that the property makes $6000 minus $3600 in mortgage and repairs each month. So, he profits $1400 a month in the slow season. I also said it is in Davenport, where people visiting Disney and other parks stay. He charges $150-350 a night depending on the season. He also charges $150 cleaning fee and pays his PM $100 to clean it. He makes money off both the stay and the cleaning. He is also booked 3-4 months in advance, always a steady income. He also just had the heat go out during a stay..it can be very frustrating and expensive at times..there are pros and cons, but as I said, its not for everyone.
I also OWN MY AirBNB that rents for $55-250 a night. I have managed and know numerous AirBNBS owners in and around Tampa. I own a boat that sits on Indian Rocks Beach. I bring home between $400-2000 a month depending on the season. I manage it myself. Again, it isn't for everyone and it isn't easy, but if you manage it right, it can work. Things break and sometimes you just can't make people happy, but it makes money and it makes my boat a tax deduction. I can't lose. Feel free to check it out on AirBNB. Look up Unique stays in Indian Rocks Beach. Updated Yacht. And yes, I own it.
Investor · Kansas City Missouri · Member since 2018 · 1 post · 1 vote
6y
Hello everyone. I typically do not respond to threads. In fact, this is my first. My name is Mark King and I am the AirBNB property owner that Mya Toohey is referring to. I am a Missouri Real Estate Agent out of Keller Williams Lees Summit, Missouri. I own 5 homes in Florida, one of them an Airbnb. All of this can be verified. I have owned this last Airbnb in Davenport for over one year. The listing is found here:
On the months where sales appeared down, I either rented privately or by VRBO/Home away.
I charged guests over 50K on this property this year.
My Debits are as follows:
Mortgage 1500, Electric 300 average pay, cable/internet 125 provided by Comcast, gas/water/trash 100, HOA Hampton Lakes 40, Pool guy 60, exterminator 60. This is 2185. Per year $26,220. I am making almost double. Even with repairs, (which I love completely---great write-offs!) I have one hell of an ROI!
Slow/off-season months are handled by lowering the price point. I sometimes lower to 99 or even 89 dollars a month! Well, you ask, then how the hell do I make money??? I do it by the numbers.
I have great reviews and ratings, and it is not hard to find someone to jump at a 5 bed, 4 bath house for 89 and 99 a month!
I'd rather make 90 or 100 than to lose a guest and have an empty house. More booking equals more profits! Although I charge a small above profit amount on the slow seasons, I make a killing on cleaning fees! I pay my housekeeper 100 dollars and I charge guests 250 a cleaning. Still cheaper than to rent a hall which has restrictions for the special occasions---- I host birthday parties, bridal showers, bachelor parties, reunions, and even Church groups and Cheerleading groups. I average 6 to 8 guests a month which equals 1000 to 1200 dollars in profit just from cleanings! I offer coupons at local high schools for their school auctions. I talk to local radio stations and give days away for mothers in need around the holidays--great FREE advertising! There is more that I do, but I do not have time to explain. Taking time to write this is taking time away from me doing other deals. I just felt compelled to defend my Florida friend and Realtor Agent Mya Toohey whom you sceptics have disbelieved. If you are not making over 20K on an Airbnb, you are not doing it right. Find a mentor who can help. The sceptics on this post do not understand if they are from another state and do not see the local interworkings. I am an agent in Missouri who still relies on a Florida Agent for guidance on investing neighbourhoods and local politics (construction code changes, developing towns, etc). Don't listen to Realtors who don't understand the Airbnb business model because they can't rationalize the profit in their head. Only take it from someone who has done it, who is doing it, and who continues to do it.
If you have any doubt that I do not manage 1200 to 1500 a month, just ask me. I will have you sign an NDA and I will sit down and show it to you. Remember, I have nothing to prove to anyone. Within the last 30 days I have purchased over a million dollars in real estate in Pinellas County. You can also verify this, but do you want to be negative and doubt people, or learn from them by keeping an open mind and changing your way of thinking. Again, please don't doubt Mya or even infer she is making anything up or her numbers are off. My evidence in the numbers speaks for themselves.
Thanks for the read. Now I'm off to checking my investments and doing deals.
Property Manager · Chicago, IL · Member since 2018 · 37 posts · 9 votes
6y
@Mark King That was an interesting take on it. And inspiring. From the sounds of it, it’s indeed possible to make money in central Florida - as long as you know what you’re doing!
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
6y
You can make money anywhere, as long as you have your niche. My town is full of bank foreclosures, meth heads, unemployed people, no tourist attractions, hookers, crime, and general misery. But I make some decent jack from renting my STRs to contractors. Big burly guys that chew tobacco in their sleep, drive jacked up 4x4s, have neck tats and smell like diesel fuel. They are welders, pipefitters, boilermakers and the like. The guys you see working on the large erections of steel at a petrochemical refinery.