Investing at Margaritaville Orlando?

Short-Term & Vacation Rental Discussions
5yFollow

Investing at Margaritaville Orlando?

Nancy Bender
Investor · SC · Member since 2020 · 43 posts · 32 votes

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.

4Reply
721 views

Most Popular Reply

Christian Peterson
Member since 2023 · 2 posts · 8 votes
2y

I know no one has posted on this thread in some time, but I thought I would revive it with my experience.  We bought two new construction townhome units in Margaritaville back in July 2021 that were completed in January 2023, a 3 bedroom and a 4 bedroom villa right next to each other.  At least with the numbers available at the time, these looked like good investments.  

So far these properties have both been losers for us.  We are at 15% occupancy on the 4 bedroom and 21% occupancy for the 3 bedroom.  This appears to be about average for the whole owner community.  

The problem as far as I can tell is that new construction vastly outpaced rental demand.  So they may have had great occupancy at the resort when it was smaller, now it is a ghost town.  Not to mention that 2023 has been a pretty horrible year for Disney and Florida tourism generally.

We're holding on to these for at least a little while longer to see what happens.  If Margaritaville can return occupancy back to former levels these will be worthwhile investments for us.  I'm willing to give it at least one more year to see if it turns around.  

Otherwise, like others, we will likely have to sell at least one unit.  We will likely keep one as, if nothing else, we are huge Disney fans and it offsets our usual vacation budget by quite a bit.  

As for some of the other things people have mentioned.  We use Rentyl Resorts for our property management, which I think is the way to go as you get to put your unit in the rental pool.  A friend of mine who also owns in the community uses the other property manager and is not happy with them at all.  Owning these has been a completely hands off "investment".  The resort is beautiful and very fun for our family.  As a second home, we have zero complaints in owning these properties.

7Reply
See this reply in the discussion

46 Replies

Jump to latestLatest
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    5y
    Costs? Price? 
    0Reply
  • Nancy Bender
    OP
    Investor · SC · Member since 2020 · 43 posts · 32 votes
    5y

    @Michael Baum, depends on size. Looking at an 1800 square foot four bedroom townhouse for $413k

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    5y

    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.

    1Reply
  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    5y
    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. 

    [email protected]407-590-9858
    GPG Team 596 Reviews
    WebsiteView Page
    1Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
    5y

    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

    0Reply
  • Glenn Wilkins
    Member since 2021 · 1 post · 2 votes
    5y

    Hi Tyler, Which other communities might you suggest for the best positive cashflow?

    2Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes
    5y

    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!

    0Reply
  • Ray Machlowski
    Member since 2021 · 2 posts · 2 votes
    5y

    Nancy 

    Would be curious to hear what or if you decided on Margaritaville. I too have been looking hard here while watching prices sky rocket. Should have pulled trigger two years ago! Thanks 


    Ray 

    1Reply
  • Nancy Bender
    OP
    Investor · SC · Member since 2020 · 43 posts · 32 votes
    5y

    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

    3Reply
  • Ray Machlowski
    Member since 2021 · 2 posts · 2 votes
    5y

    Thanks for sharing the info Nancy.  Good luck with the investment.

    1Reply
  • Nancy Bender
    OP
    Investor · SC · Member since 2020 · 43 posts · 32 votes
    5y

    Thanks!

    0Reply
  • Christopher Desir
    Orlando, FL · Member since 2021 · 2 posts · 1 vote
    5y

    @Nancy Bender I’m currently in Orlando, and I believe it will. Maybe sooner then later.

    0Reply
  • Joey Morea
    Lender · Tampa, FL · Member since 2018 · 149 posts · 102 votes
    5y

    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.

    2Reply
  • Hans Baldau
    New to Real Estate · Las Vegas, NV · Member since 2020 · 23 posts · 7 votes
    5y

    @Nancy Bender

    Any update on how it is going?

    3Reply
  • Phillip Marshall
    Member since 2021 · 9 posts · 7 votes
    5y

    Hey @Nancy Bender, how's it coming along?

    0Reply
  • Phillip Marshall
    Member since 2021 · 9 posts · 7 votes
    5y

    @Michael Baum how are you getting these numbers? I'm looking at AirDNA and I don't see those daily rates or Occupancy levels that low. 

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    5y

    Hey @Phillip Marshall, I pulled the numbers direct from the booking sites themselves. No AirDNA. I have found it to be unreliable.

    0Reply
  • Jillian Kitson
    Member since 2022 · 2 posts · 1 vote
    4y

    @Nancy Bender how is it going at Margaritaville? Would love to hear if you recommend!

    0Reply
  • Nancy Bender
    OP
    Investor · SC · Member since 2020 · 43 posts · 32 votes
    4y

    Hi Jillian,

    It is not set to be finished until the beginning of April. My thoughts are trying self management at that time (with many disclaimers on my Airbnb listing that the main pool is off limits to my guests).

    If it goes well I will keep it. I give it a year. If it gets too complicated self managing I will sell and look for another area that will work better for that. 

    Sorry I don't have more to share!

    2Reply
  • Jillian Kitson
    Member since 2022 · 2 posts · 1 vote
    4y

    Hi,

    That's an idea! We live on RI so a bit too far away to manage it myself. I was looking onto the two preferred companies and the fees are very high.

    Wish you all the best!

    Jill 

    1Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
    4y

    @Jillian Kitson @Nancy Bender Margaritaville and Reunion (and few condo resorts) all have rules about self managing and having access to amenities. There are about 10-12 other resort communities with similar amenities and have no restrictions on how you manage. I usually only recommend those communities if the owner gets a lot of personal use at the property and wants to have the rest pretty much pay for itself, but not as a cash flow investment.

    Best of luck!

    0Reply
  • Madeline P.
    Tampa, FL · Member since 2016 · 44 posts · 10 votes
    4y

    @Shawn McCormick, which ones do you recommend as cash flow investments?

    1Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
    4y

    @Madeline P. Some of the best communities are (in no order) Championsgate, Storey Lake, Windsor Island, Solterra, Solara, Windsor at Westside, Windsor Hills and a few others.

    2Reply
  • Madeline P.
    Tampa, FL · Member since 2016 · 44 posts · 10 votes
    4y
    Originally posted by @Shawn McCormick:

    @Madeline P. Some of the best communities are (in no order) Championsgate, Storey Lake, Windsor Island, Solterra, Solara, Windsor at Westside, Windsor Hills and a few others.

    @Shawn McCormick, thank you!

    0Reply
  • Ashley Byington
    Rental Property Investor · Victor, ID · Member since 2017 · 51 posts · 31 votes
    4y

    @Nancy Bender do you know if there are restrictions for investors under 55? Or any rental restrictions, nightly, weekly, monthly stays?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free