Investing at Margaritaville Orlando?

17 Replies

Has anyone looked into, or have an opinion on, investing in a short term vacation rental at Margaritaville Orlando? They are starting a new phase of townhomes and I am trying to figure out if the returns will be good. Tourism is still not where it has been before covid but I believe in a year or so it will probably bounce back to pre-covid levels.

Hey @Nancy Bender , ok so you have a base price on the place. I assume it has HOA and the like. Have you done a search in that community on AirBNB and VRBO for similar units. What are their nightly rates? What do their calendars look like?

Also you should look at each and every resort community that is similar to Margaritaville. Places with the same kind of amenities etc. Look at their nightly rates and occupancy.

All of that will give you a good baseline on what you can expect. My wife and I were looking in some of the resort communities in the Orlando area. My wife is a huge Disney nut and she loved the idea.

Frankly, I couldn't really see where numbers would have worked on a 315k house in a community. After everything was said and done, it wouldn't have cash flowed. Nightly rates on the same model in the same community was $60 a night. The nightly rate on that exact house was averaging $58 a night with about 50% occupancy that I could see.

i don't want to discourage you, but make sure you run those numbers. Get everything, electricity, cable etc. See where you stand.

Originally posted by @Nancy Bender :

Has anyone looked into, or have an opinion on, investing in a short term vacation rental at Margaritaville Orlando? They are starting a new phase of townhomes and I am trying to figure out if the returns will be good. Tourism is still not where it has been before covid but I believe in a year or so it will probably bounce back to pre-covid levels.

 I don't think Margaritaville makes sense as a cash flow investment. There are other communities that are probably better. Now if you just want to own in margaritaville and offset the cost of ownership that is viable but I doubt you would be happy with that. 

Hello @Nancy Bender Margaritaville has pros and cons like any other vacation community. One thing to consider is PM options and being limited to who you can use and how they market the property. Obviously, the Margaritaville Brand is very strong and they have great amenities, but is it universally appealing so you attract as wide a demographic audience. It has great visibility and proximity to the parks.

There are many other sought after communities to consider and some new construction ones as well. Like Tyler said, if it appeals to you and you plan to use it personally, it might make sense. So your returns will be reflected by the reputation of the community, its amenities and your pricing compared to other similar ones.

Happy to chat about my experiences selling homes in some of those resorts anytime. Feel free to reach out! Good luck

Hey @Glenn Wilkins , just saw your post. We market and manage over 100 homes in the Disney area and are happy to review communities and home types with you for best cash flow. We can also provide reports on revenue and occupancy for individual homes. The market is very tight at the moment, but there are still opportunities to be had!

Hi Ray,

Yes I did. it looks like the numbers will work well even with the less expensive property manager. I bought a four bedroom end unit. In the next phase that will soon be released that model will be pricing 25,000 more. So, at the very least I have already had some appreciation. As Disney opens up to much higher capacity I’m assuming things could be better than I anticipated.

I bought a villa also, not a cottage. 

Nancy

I think margartaville could be good if you want to be totally hands off. A toy that breaks even kid of thing but you have no control how you rent it. You have to use one of two PMs you have to use the approved furniture package and you cannot customize anything. Also the price points tend to be a bit more in there. I agree the branding is a nice I just which you could have more control as an owner. I personally would look in a neighborhood that allows you to self manage and you have full control of your bookings.