Investing at Margaritaville Orlando?
Investor 路 SC 路 Member since 2020 路 43 posts 路 32 votes
Investing at Margaritaville Orlando?
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Member since 2023 路 2 posts 路 8 votes
2yI 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.
46 Replies
- Investor 路 SC 路 Member since 2020 路 43 posts 路 32 votes4y
Not that I have every heard of
@Ashley Byington there are none in Margaritaville but some communities are 55+ and older. The faqs are also online: https://margaritavillevillasor...
@Nancy Bender thanks for posting this, was wondering more about that community and this thread helped clarify some things. Good luck in April, it's quickly approaching and would love to hear how you do! Excited for you!
- Member since 2022 路 41 posts 路 0 votes4y
I was very interested in Margaritaville also but when I ran the numbers, when factoring the HOA, MGMT, resort fees, ins, ect, it was a complete disaster! Even though this area is the #1 travel destination, they "continue" to overbuild and over supply STRs to the point they have killed the golden goose. It is also impossible to compete with all the on-sight resorts at "all" the theme park tourist traps that offer tons of perks you can't compete with.
- Investor 路 SC 路 Member since 2020 路 43 posts 路 32 votes4y
Hi David,
My plan is to self manage my villa. I have communicated with many people there that also self manage and do very well. From what I gather the two property management companies are not very good. Worst case scenario, if things aren't great I can always sell and reinvest somewhere else. I don't expect to close for another month or so, so we will see!
- Member since 2022 路 41 posts 路 0 votes4y
If you self manage they will forbid you from using the Margaritaville name in your advertising and your guests will not be allowed to use the resort pool. Self managing will save you only a small amount compared to "all" the other expenses that keep raising relentlessly. The prices are starting to come down but have about another 40-50% more to go before the math starts to work as a viable investment. I would still only consider single family as the condo, hotel, & resort rooms are in a far worse over saturated situation.
- 4yShawn McCormickPro MemberRealtor 路 Central Florida-Orlando 路 Member since 2014 路 1k+ posts 路 894 votes
@Nancy Bender there are currently 16 active listing in Margaritaville and the supply of listings is almost always higher than other similar nearby resorts. 10 of those 16 have been listed for 60 days or more. I don't know that I would gamble and say you could sell it if it doesn't work out, you could be holding it for some time.
- Member since 2022 路 1 post 路 1 vote3y
@Nancy Bender wondering how your Margaritaville is working out. We're considering buying and self managing. With the high HOA and other fees, is it still possible to cash flow?
- Member since 2022 路 67 posts 路 0 votes3y
Quote from @Lisa Weaver:
@Nancy Bender wondering how your Margaritaville is working out. We're considering buying and self managing. With the high HOA and other fees, is it still possible to cash flow?
It will NOT cashflow!! Too much hyper construction / oversupply! An investment here is almost as bad as a time share when you factor "ALL" the fees and monthly expenses they bend you over for. Trust me I ran the numbers and after talking with one of the property mgrs, don't walk... RUN!!!
- Member since 2023 路 1 post 路 0 votes3y
Quote from @David Siddall:
Quote from @Lisa Weaver:
@Nancy Bender wondering how your Margaritaville is working out. We're considering buying and self managing. With the high HOA and other fees, is it still possible to cash flow?
It will NOT cashflow!! Too much hyper construction / oversupply! An investment here is almost as bad as a time share when you factor "ALL" the fees and monthly expenses they bend you over for. Trust me I ran the numbers and after talking with one of the property mgrs, don't walk... RUN!!!
Do you have anymore details or hard numbers?
- Member since 2023 路 7 posts 路 1 vote3y
Quote from @Nancy Bender:
Hi David,
My plan is to self manage my villa. I have communicated with many people there that also self manage and do very well. From what I gather the two property management companies are not very good. Worst case scenario, if things aren't great I can always sell and reinvest somewhere else. I don't expect to close for another month or so, so we will see!
It is June now. I'd love to know how it is all going, or how it all went.
- Member since 2023 路 2 posts 路 8 votes2y
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.
- Orlando 路 Member since 2023 路 61 posts 路 13 votes2y
I worked with some people who looked into purchasing there when it opened a few years ago. It worked for a while but right now STR is not doing well. I've heard some of the same things about the property management companies and not being able to use the Margaritaville name and things but I don't have any concrete evidence to provide. I know people who are purchasing homes in communities that allow ltr and str. They're having the str furnishings moved out and renting it long term until the str market improves. I would give that a look and a thought too!
- Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 17k+ votes2y
Quote from @Christian Peterson:
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.
Thanks for the update. I own an STR not far from Margaritaville, and used to stay at Westgate and other STRs in the area so I watched it from being a pile of sand with some signs to being what it is now. Yes, occupancy has been abysmal this year so anyone who needs even 50% to make their notes is probably in a lot of trouble right now.
If it turns out that you end up ditching both look me up - my place is in Cagan's Crossing right up the street from you, and I have a private pool and a small lake 馃槣
Skyline Properties - Orlando 路 Member since 2023 路 61 posts 路 13 votes2y
Quote from @JD Martin:
Quote from @Christian Peterson:
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.
Thanks for the update. I own an STR not far from Margaritaville, and used to stay at Westgate and other STRs in the area so I watched it from being a pile of sand with some signs to being what it is now. Yes, occupancy has been abysmal this year so anyone who needs even 50% to make their notes is probably in a lot of trouble right now.
If it turns out that you end up ditching both look me up - my place is in Cagan's Crossing right up the street from you, and I have a private pool and a small lake 馃槣
I've had lots of people call me who bought in the last two years for str and now they're in trouble because they can't pay their note. With the high HOA fees plus a mortgage, long term rentals won't pay enough. If you're going to be buying in a str community make sure 50% occupancy or less can pay all your bills.
- Thank you for resurrecting this thread. I鈥檝e been looking for info on Margaritaville owner鈥檚 experiences, but can find absolutely nothing. There are FB community pages, but you can鈥檛 join unless you are a current resident.
Quote from @Christian Peterson:
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.
like you, we stayed there in a cottage and LOVED it. I鈥檝e also seen the massive construction going on and assumed the STR would be affected. Disney World will always be a factor and now, Unoversal is opening a brand new park next year.
My thoughts are that perhaps 2 room cottage would be more desirable for a typical family of four on vacation?
I figure even if I invest, and it鈥檚 a failure, I鈥檇 at least have an amazing place on the East coast to visit.
i would love to hear more from you. - Investor 路 SC 路 Member since 2020 路 43 posts 路 32 votes2y
Hi Ryan,
I agree with the above post from @Christian Peterson. I have owned there now since July of 2022, and occupancy has been low for me too. To counteract that now I have my 4 bed/3 bath villa rented out as a midterm rental. I have been doing that since September.
The resort is beautiful and the proximity to Disney is great.For someone that wants to travel to the parks on a regular basis owning in Margaritaville is perfect.
As a short term rental investment right now it is definitely not the best choice. But based on what I know around the country, there aren't many areas doing well right now with STR's.
I will probably keep mine as long as I have a full time renter, but unless short term picks up, I will probably sell. I hope that short term will pick up as I really do love the area!
- Rental Property Investor 路 FL 路 Member since 2021 路 13 posts 路 12 votes2y
Small single family homes/townhouses/condos around Disney will rarely be profitable. You have to purchase a larger single family homes, 6+ bedrooms. More importantly you HAVE to do extensive theming throughout the house. If you don't differentiate your property you will fall victim to the mass market, where you will be competing to be the cheapest on the block to get any bookings. Not where you want to be.
If you purchase a townhouse/condo that only sleep 5 or so people you are competing with hotels.
2023 was not a good year for the market. However the highly professionally themed properties were still profitable. I have themed a lot of the properties in the area and run a management company for high end themed properties. They are profitable, even in a down market. Things are looking up in 2024 as well. Not to mention EPIC UNIVERSE in 2025 which will blow the roof off this market.
- Member since 2023 路 2 posts 路 8 votes2y
Like Josh mentioned above, the 6+ bedroom homes in Margaritaville are doing fairly well. We've noticed an uptick in bookings since December, but still nothing that would make our villas a superior investment. We've visited the home several times now. We absolutely love it. We likely will be selling our 3 bedroom and keeping our 4 bedroom, even though the 4 bedroom doesn't generally rent as well.
We're very comfortable with our purchase even though it's not a cashflowing investment. Consideringwhat most families of our size spend to stay at Disney for a short time, you really can't beat it in terms of comparative costs. When it rents out it covers some of our costs even more. That's really how you should look at buying there. It's not an investment property. It's like house hacking for your vacation.
wondering if as prices fall if this makes more sense? I've looked around and trying to find an investment property for the next 10 years, but more or less where my wife and I will retire. A place that my boys will want to come and visit many times.
This place seems great, and in a great location but also based on everything I've researched and read on the interwebs a bad investment property :-(
At what pricing does it start to make sense do you all think?
I owned a place in Daytona Beach prior and that did well for 2 years and then the bottom totally fell out of the (global) market. I was fine but folks basically wanted to rent for less than my cost of electricity... haha so that one was a failure but the 2007-11 years which were pretty apocalyptic :-)
- Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 17k+ votes2y
Quote from @Jim Bayne:
wondering if as prices fall if this makes more sense? I've looked around and trying to find an investment property for the next 10 years, but more or less where my wife and I will retire. A place that my boys will want to come and visit many times.
This place seems great, and in a great location but also based on everything I've researched and read on the interwebs a bad investment property :-(
At what pricing does it start to make sense do you all think?
I owned a place in Daytona Beach prior and that did well for 2 years and then the bottom totally fell out of the (global) market. I was fine but folks basically wanted to rent for less than my cost of electricity... haha so that one was a failure but the 2007-11 years which were pretty apocalyptic :-)
I don't think Margaritaville is ever going to make sense as an investment property because of the prices and the HOA fees. They're not far from my house (I'm in 4 Corners) and if you've been watching it you see prices have been cratering in there, but I don't think they'll get down low enough where it makes any sense as a STR at least in terms of making any money. Actually, I think that now that Jimmy's dead, the Margaritaville line is going to be in for a serious decline in the coming years. It really was kind of a cult of personality. I saw MV from the time they turned the first shovelful of sand and if you got in at the very beginning and then sold in 2021-2023 you made a nice chunk of money, but everyone else is going to have their *** handed to them.
If you're looking for something you can retire to later but use at least in the short term, there's plenty of home subdivisions in the area. None of them are going to make you break even - reconcile yourself to that right now - but you can be close to the action and in a nice development. I think Calabria is really nice, close to everything and not outrageous (yet) in price. Acadia is nice too and really close to Disney. If you don't want a house look in Cagan's Crossing, there's some nice condos and townhouses in there.
Skyline Properties - Property Manager 路 Kissimmee, FL 路 Member since 2019 路 446 posts 路 266 votes2yI agree that Margaritaville will never make sense, for all the reasons described above. But there are many communities nearby which will allow you and your boys to make memories, and eventually you can retire here. A lot will depend on your personal preference - if you are looking for a very tourist-friendly community with top amenities I would suggest a pool townhome in Solara, Windsor at Westside, Windsor Hills or Windsor Island (all the Windsors). On the other hand, if you are looking for a more peaceful community there are other spots close to Disney you can find a great townhouse or even a smaller S/f home. I am happy to jump on a call and brainstorm the possibilities, and also give you an idea on realistic revenue potential so you can compare. Shoot me a DM if I can help!
Quote from @Jim Bayne:
wondering if as prices fall if this makes more sense? I've looked around and trying to find an investment property for the next 10 years, but more or less where my wife and I will retire. A place that my boys will want to come and visit many times.
This place seems great, and in a great location but also based on everything I've researched and read on the interwebs a bad investment property :-(
At what pricing does it start to make sense do you all think?
I owned a place in Daytona Beach prior and that did well for 2 years and then the bottom totally fell out of the (global) market. I was fine but folks basically wanted to rent for less than my cost of electricity... haha so that one was a failure but the 2007-11 years which were pretty apocalyptic :-)
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