Investing in STR in the Orlando area

Member since 2022 · 7 posts · 10 votes

I'm looking to purchase a STR in the Orlando area. I have just started looking, so I appreciate any advice. I'm currently looking at Reunion and Encore, but I'm open to other suggestions. We would like to use it for our family some, but it primarily needs to make sense as a STR. Is a certain number of bedrooms easier to rent? Square footage? It appears that the more modern homes with a nice game room and theme rooms do better as rentals? TIA

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Ryan MoyerBusiness Member

Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes

Reunion/Encore is the nicest neighborhood of the resort rental communities, so if using it yourself is a high priority then it may make sense.

If your primary goal is as an investment, I think the other resort neighborhoods (Champions Gate, Windsor Hills, Windsor at Westside, Solara, Solterra, etc) make more sense. You pay a premium in home cost in Reunion and that doesn't necessarily come back in rental revenue to the same capacity. More importantly, your guests can't use the clubhouse/amenities unless you let one of their preferred property managers manage for you. Ideally, you'll self manage. Outside of that, you definitely don't want to be stuck with a neighborhood assigned manager that can charge higher rates and do a lessor job because competition is regulated out.

Outside of that, you have the right idea. Theming/gameroom/theaters is priority #1. More modern homes help, but the themes/gamerooms will trump that.

My personal take on Disney is simple. If you just want to put up a nice home with nice furniture on airbnb/vrbo you're going to be competing with 40,000 nice homes so the only thing you can compete on is price. If you're willing to put in the money up front for theming to really stand out then there is a lot of money to be made here. You can see my Orlando property in my profile.

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Jay BreitlowPro Member
Property Manager · Orlando, FL · Member since 2020 · 138 posts · 85 votes
4y
@Shannon Currin Congrats on taking the first step into the Orlando market. Tell us a little more about your criteria as there are quite literally dozens of HOA subdivisions in the area. SFH I would assume based on your Encore and Reunion comment. There is one thing you should know about Encore, and Margaritaville for that matter as the builder there is the same. Both of these communities require that you use their preferred vendor LRR in order to use their clubhouse "owners" amenities. That does not make it impossible to own in these areas and self manage or hire a PM with lower fees and better service but it does mean you need to be aware of how you will market the property.
Storrey Lake for instance would be a well positioned community close to the parks with reasonable owner anonymity that offers many turn key resale opportunities. I personally like the Windsor communities, specifically Windsor at Westside or Windsor Hills. I have seen some really beautiful revenue projections come out of Emerald Island.
Gotta have a pro forma built up. and Know your numbers is a must so you can strike quick because people will not wait for you to get your offer written. There is a massive inventory crunch here now that is showing minimal signs of ease.
Just some food for thought but please share more details and we can try and point ya in the right direction. GOOD LUCK and Congrats!
[email protected]407-499-2954
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Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
4y
@Shannon Currin, @Alice Horn may be able to assist you with your questions.
[email protected]619-456-8311
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Shannon Currin
OP
Member since 2022 · 7 posts · 10 votes
4y
@Jay Breitlow I have been to Reunion and like that neighborhood, but would be interested in other similar neighborhoods. I want single family and a minimum of 5 bedrooms; however, I could go bigger if that is better for a STR. I'm looking in a fairly broad price range for the moment (750k-1.5M). I'm not sure what price range makes the best ROI? I am out of state, so I assumed that I needed a property management company, but it sounds like a lot of people manage their own from a distance? I have not looked at the others you mentioned, but I will take a look. Thanks!
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Shannon Currin
OP
Member since 2022 · 7 posts · 10 votes
4y
@Raymond J. Rodrigues Thank you! I will look her up. Is she a property manager?
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Valentina Calla
Real Estate Agent · Orlando, FL · Member since 2021 · 65 posts · 53 votes
4y
Hey Shannon! Orlando is a great place to do STR. Be sure you look in the designated STR-approved areas like Davenport or Kissimmee, an agent will be able to help you with that. In general, larger homes with more bedrooms is more desirable in the current Orlando STR market. Having a theme will also help tremendously as it will help you stand out amongst the multiple STRs right now. Good luck and feel free to message me if you have any other questions!
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Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
4y
@Shannon Currin you have many option here in Orlando. We have many resort communities that have similar amenties/guest experiences as Reunion. as @Jay Breitlow you will have to expect the extra membership fees associated with some communities in order for your guests to enjoy everything they offer.
There are about a dozen, large, high quality resorts that you can self manage or use any property manager you wish. This gives you more control over fees they charge and services offered for you to pick your own PM. Whether you choose to do it yourself or use a PM will provide very different ROI. If you don't have experience doing it in a particular market, I would strongly suggest using a PM at first so you don't lose out on revenue/bookings in the first year, the learning curve is steep. However, I would always keep the 15-20% that a PM charges in your proforma just in case you find out you don't like it or don't have the time, that way the profits will still fit within your buy box.
Hope this helps, best of luck!
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Jay BreitlowPro Member
Property Manager · Orlando, FL · Member since 2020 · 138 posts · 85 votes
4y
@Shannon Currin Your price range is a great place for getting a return on your investment as there are "less" investors in that range. Lots of $600k and under people here competing to get in Orlando. We are talking 30 offers on one "cheap" house on the first day type of stuff - or so my clients tell me. There seems to be a sweet spot in my most recent revenue projections around $800k. Ideally we are looking to get revenue projections back around $100k gross - not net. You are always able to manage the property yourself - but just because you CAN doesn't mean you should LOL. I would be remiss if I didn't plug the benefits of a PM (and I am a PM and the Orlando market is the only market we service) by only taking out 15% of revenue especially when what should happen is an attempt to "find" the 15% fee with amazing bookings and really using dynamic pricing to get the best ROI for your unit. Less headaches, more free time, put your money to work for you.

At your price range guests expect - rightfully so - amazing experiences and no issues with that stay. Which means you need to have regular touch points and QC checks at your residence. NEVER rely on cleaners to QC their own work. After all they are human. Let me know if this was helpful. Also see @Shawn McCormick's note here as that is good counsel.
[email protected]407-499-2954
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Jason Regan
Investor · Leominster Ma · Member since 2019 · 305 posts · 162 votes
4y
Congrats on the search. I am closing on mine in about a week! The big things that set you apart in this area are proximity to Disney, amenities in the complex and finally theming. I am putting a lot of effort into theming my unit so it looks different then the 7000 other Airbnb in the area. The research I have done and my very experienced STR realtor shows this is a huge difference. My buy is in Storey Lake 2.
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Shannon Currin
OP
Member since 2022 · 7 posts · 10 votes
4y
@Shawn McCormick Thanks for the advice! I really appreciate it!
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Shannon Currin
OP
Member since 2022 · 7 posts · 10 votes
4y
@Jason Regan Congratulations! I like Storey Lake. I hope it does well for you. I have read that the homes with themed rooms and a nice game room do better and stand out. Who is your realtor?
1 Reply
Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
4y
@Shannon Currin Happy to help anytime. I am closing on two in Storey Lake this month if you need any information and have some great contacts to theme out the homes too.
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Matt Nico
Member since 2019 · 448 posts · 306 votes
4y
Originally posted by @Shannon Currin:
I'm looking to purchase a STR in the Orlando area. I have just started looking, so I appreciate any advice. I'm currently looking at Reunion and Encore, but I'm open to other suggestions. We would like to use it for our family some, but it primarily needs to make sense as a STR. Is a certain number of bedrooms easier to rent? Square footage? It appears that the more modern homes with a nice game room and theme rooms do better as rentals? TIA

Shannon,
I own 3 different STR's in 3 different communities of the Kissimmee/Championsgate/Davenport area. I personally avoid the Storey Lakes, Reunions, Windsors, and those other huge communities...The price-points are becoming too high there.

I invest in the surrounding communities with less amenities and lower HOA's. The return is much better in the surrounding communities, especially if you theme your home correctly....In essence, your home becomes the attraction rather than the community amenities. I have rehabbed all 3 of my homes in-house. If you'd like, I can share my listings and numbers with you so you can get an idea of how they perform :)
Happy Housing,
Matt

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Alexander Pankov
Member since 2022 · 2 posts · 0 votes
4y
Hi Matt , I am looking to purchase a STR in that area as well! I appreciate if you can share your listings and numbers with me as well :) Look forward to hearing from you!

Sincerely,

Alex
0 Reply
Shannon Currin
OP
Member since 2022 · 7 posts · 10 votes
4y
Quote from @Matt Nico:

Originally posted by @Shannon Currin:
I'm looking to purchase a STR in the Orlando area. I have just started looking, so I appreciate any advice. I'm currently looking at Reunion and Encore, but I'm open to other suggestions. We would like to use it for our family some, but it primarily needs to make sense as a STR. Is a certain number of bedrooms easier to rent? Square footage? It appears that the more modern homes with a nice game room and theme rooms do better as rentals? TIA

Shannon,
I own 3 different STR's in 3 different communities of the Kissimmee/Championsgate/Davenport area. I personally avoid the Storey Lakes, Reunions, Windsors, and those other huge communities...The price-points are becoming too high there.

I invest in the surrounding communities with less amenities and lower HOA's. The return is much better in the surrounding communities, especially if you theme your home correctly....In essence, your home becomes the attraction rather than the community amenities. I have rehabbed all 3 of my homes in-house. If you'd like, I can share my listings and numbers with you so you can get an idea of how they perform :)
Happy Housing,
Matt

Hi Matt,
That would be great. Can you PM me? Thanks, Shannon
0 Reply
Alice Horn
Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes
4y
Hey @Shannon Currin! Sorry I'm late to the party! Happy to provide some insights on the various STR communities in Orlando, types of homes and pros and cons for each. I completely agree that Encore/Margaritaville and Reunion are not the most guest-friendly if you aren't using their management services. On the other hand, we work with many communities with similar amenities that are fully accessible to guests. In my experience, slightly higher HOA fees can be worthwhile if they translate into a better guest experience - many travelers expect the full "resort" experience (clubhouse, pool, lazy river, water slide, etc...). This will also translate into higher revenue if the property is priced properly. Feel free to PM me anytime!
0 Reply
Phranil Mehta
Member since 2022 · 1 post · 1 vote
4y
Quote from @Matt Nico:

Originally posted by @Shannon Currin:
I'm looking to purchase a STR in the Orlando area. I have just started looking, so I appreciate any advice. I'm currently looking at Reunion and Encore, but I'm open to other suggestions. We would like to use it for our family some, but it primarily needs to make sense as a STR. Is a certain number of bedrooms easier to rent? Square footage? It appears that the more modern homes with a nice game room and theme rooms do better as rentals? TIA

Shannon,
I own 3 different STR's in 3 different communities of the Kissimmee/Championsgate/Davenport area. I personally avoid the Storey Lakes, Reunions, Windsors, and those other huge communities...The price-points are becoming too high there.

I invest in the surrounding communities with less amenities and lower HOA's. The return is much better in the surrounding communities, especially if you theme your home correctly....In essence, your home becomes the attraction rather than the community amenities. I have rehabbed all 3 of my homes in-house. If you'd like, I can share my listings and numbers with you so you can get an idea of how they perform :)
Happy Housing,
Matt

Hi Matt,
That`s an interesting position you have. I am close to picking a property in Storey lake, would appreciate if you can share some info on your investments with me as well please.

Sincerely,
Neil.
1 Reply
Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
4y
Quote from @Shannon Currin:

@Jay Breitlow I have been to Reunion and like that neighborhood, but would be interested in other similar neighborhoods. I want single family and a minimum of 5 bedrooms; however, I could go bigger if that is better for a STR. I'm looking in a fairly broad price range for the moment (750k-1.5M). I'm not sure what price range makes the best ROI? I am out of state, so I assumed that I needed a property management company, but it sounds like a lot of people manage their own from a distance? I have not looked at the others you mentioned, but I will take a look. Thanks!

It sounds like you have the right idea. If you have the budget for it, and it sounds like you do, Disney is easy IMO. Buy big, and stand out. There are almost 40,000 vacation rentals in the Disney area. Nice houses with nice furniture are a dime a dozen and the only way to compete if you have those is by lowering prices. If you're in the top 10% of those 40k you will stay very well booked, at high rates. The path to that 10% you've already figured out. Theming.

I have a well themed 9br in Champions Gate (link below) that I went live with in October that is doing very well. If you want to connect via PM I can share numbers with you as well as expenses (which are fairly high in Florida).

https://www.airbnb.com/rooms/5...

From a personal use standpoint, you will be happier in Reunion. It is simply a nicer neighborhood with less of a party atmosphere than some of the others. However from an investment standpoint your returns will be worse there. Home prices are higher and, as was mentioned above, you are stuck using their high priced PMs or not being allowed to let your guests use the amenities.

Self managing is extremely doable. I manage mine (and several others) from Utah and it's no problem. There are lots of good PM options if you want something more passive as well. It's a balance between the desire to maximize returns or to have something that requires a little active work (though not a lot), and where you want to be on that spectrum.

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Javier Santana
Real Estate Broker · Orlando, FL · Member since 2022 · 28 posts · 11 votes
4y
Condo hotels,
One being built right now near Disney with Under Construction Pricing. Gonna be a very good looking building, with really good land value underneath.
Message me if you want to know more
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Jay BreitlowPro Member
Property Manager · Orlando, FL · Member since 2020 · 138 posts · 85 votes
4y
@Phranil Mehta - be VERY careful with the size house you buy in Storey Lake, in particular there are 2 floor plans with a MASSIVE oversupply making ROI on them extremely poor. Well there are 3 that underperform. The worst by far will be the 4BR. Happy to share the stats that our data team pulled. Just let me know.

@Ryan Moyer I have seen your casa. well done and your advice is spot on to @Shannon Currin. BTW I have a great new updated map of the top 12.5 areas in 4 corners :) let me know if you want a copy. I have an awesome team to thank for it
[email protected]407-499-2954
1 Reply
Shannon Currin
OP
Member since 2022 · 7 posts · 10 votes
4y
@Jay Breitlow That would be great if you could email it to me. Thanks!
0 Reply
Jay BreitlowPro Member
Property Manager · Orlando, FL · Member since 2020 · 138 posts · 85 votes
4y
Quote from @Shannon Currin:

@Jay Breitlow That would be great if you could email it to me. Thanks!

You know I got ya!!! Incoming! ☺️
[email protected]407-499-2954
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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
4y
Quote from @Jay Breitlow:

@Ryan Moyer I have seen your casa. well done and your advice is spot on to @Shannon Currin. BTW I have a great new updated map of the top 12.5 areas in 4 corners :) let me know if you want a copy. I have an awesome team to thank for it

Sounds cool, I'd love to check it out!
Cosmic Vacations4.9172 Reviews
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Nadia Hale
Member since 2021 · 42 posts · 9 votes
4y
Quote from @Jay Breitlow:

@Phranil Mehta - be VERY careful with the size house you buy in Storey Lake, in particular there are 2 floor plans with a MASSIVE oversupply making ROI on them extremely poor. Well there are 3 that underperform. The worst by far will be the 4BR. Happy to share the stats that our data team pulled. Just let me know.

@Ryan Moyer I have seen your casa. well done and your advice is spot on to @Shannon Currin. BTW I have a great new updated map of the top 12.5 areas in 4 corners :) let me know if you want a copy. I have an awesome team to thank for it

@Jay Breitlow, I am interested in Storey Lake , specifically the 8 bed. Would much appreciate if you could hare which 3 floorplans underperform? any info you have on this would be so helpful as these dont come cheap! Thanks

0 Reply
Silvio DoCarmo
Real Estate Agent · Orlando, FL · Member since 2019 · 25 posts · 7 votes
4y
Hi Shannon,
I see there are a lot of answers here already but yes, the bigger the home the better your ROI. The bigger homes can accommodate families traveling together, or bigger groups of friends. Themed and game rooms are also popular, and of course with a private pool and allowing pets. I know some investors that own homes in Champions Gate and Storey Lake and they are nice homes that do well. Good luck with your search!

0 Reply
Yossi Greenwald
Member since 2022 · 1 post · 0 votes
4y
Quote from @Shannon Currin:

I'm looking to purchase a STR in the Orlando area. I have just started looking, so I appreciate any advice. I'm currently looking at Reunion and Encore, but I'm open to other suggestions. We would like to use it for our family some, but it primarily needs to make sense as a STR. Is a certain number of bedrooms easier to rent? Square footage? It appears that the more modern homes with a nice game room and theme rooms do better as rentals? TIA

@Shannon Currin

Just looking through this now,
In a similar boat as you...
Seems like you've done your research!
What did you end up doing>
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