In my search for my first investment property, I came across a property that is being used for an Airbnb in Mount Dora, FL. The price is $270, with 20% down, my monthly would be around $1300. Currently, the reservations are averaging $2500 net a month. She has been using it as an Airbnb since May 2021.
I am completely new to real estate and would appreciate any input. Does this sound like a good investment?
I like the idea of generating cash flows through Airbnb’s. I also love mount Dora. The house is walking distance to the downtown.
I love Mt Dora but haven't been there in years so I hope it hasn't changed too much. Speak with the town officials about their current rules on STRs. Read thru some city council or commission meeting minutes. Tedious but if neighbors are complaining or the town officials keeps bringing up issues about STRs that's a warning to you.
2 BRs is small but doable. On a small 1930s house do a thorough check on how the house systems were updated, roof, drainage, electric, HVAC, plumbing, etc not just the viewable interior. I would lean to a house with a long time owner vs a recent flip. FL has it's share of shoddy construction work.
FL lives on tourism. Check with the local Chamber of Commerce as they usually collect data on who visits and why. Mt Dora is close enough to Orlando for people who want a day two at the attractions there but also want to enjoy a day at the beach at Daytona, kayak or hike in the Ocala National Forest, or enjoy "Old Florida" history in the town. Plan to market your unit accordingly. Best wishes!
Rental Property Investor · Orlando, FL · Member since 2018 · 301 posts · 354 votes
4y
@Barbara Pinto hello Mount Dora is a cute little town. Did the current owner share expenses to turnover the unit between guest including amenities? Also consider property management (even if your going to manage on your own).
Real Estate Agent · orlando, FL · Member since 2009 · 159 posts · 121 votes
4y
That doesn't sound like a very good deal based on the numbers. I think you could do better by Disney. I'm also not familiar with the rules for Mount Dora, but I would be willing to guess it's probably not allowed. If you're going to buy something with the intent of short-term renting, make sure it's in an area where the zoning is conducive to one day rentals.
I love Mt Dora but haven't been there in years so I hope it hasn't changed too much. Speak with the town officials about their current rules on STRs. Read thru some city council or commission meeting minutes. Tedious but if neighbors are complaining or the town officials keeps bringing up issues about STRs that's a warning to you.
2 BRs is small but doable. On a small 1930s house do a thorough check on how the house systems were updated, roof, drainage, electric, HVAC, plumbing, etc not just the viewable interior. I would lean to a house with a long time owner vs a recent flip. FL has it's share of shoddy construction work.
FL lives on tourism. Check with the local Chamber of Commerce as they usually collect data on who visits and why. Mt Dora is close enough to Orlando for people who want a day two at the attractions there but also want to enjoy a day at the beach at Daytona, kayak or hike in the Ocala National Forest, or enjoy "Old Florida" history in the town. Plan to market your unit accordingly. Best wishes!
Real Estate Agent · Orlando Fl. · Member since 2021 · 30 posts · 5 votes
4y
Barbara,
There is a lot to consider on Purchasing an Airbnb like this, for ex: new laws/rule, the cost/expense to run, cost of amenities, employees, cost for maintenance and repairs, insurance. I was just in Mount Dora last week and it is still a great place to invest. Have you considered investing in a long term rental property?
Rental Property Investor · Maryland / Virginia / Caribbean · Member since 2018 · 53 posts · 43 votes
4y
You can get market data from AirDNA or PriceLabs Market Dashboard. It sounds like their is opportunity to improve that monthly revenue. Focus on professional photos and use a 3rd party Dynamic pricing tool and you will be off to a good start.