Airbnb/Short Term Rentals

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Airbnb/Short Term Rentals

Alyssa Lukish
Orlando, FL · Member since 2020 · 4 posts · 3 votes

Hi my name is Alyssa and I am looking to buy a property in Orlando this year. I was thinking of airbnb-ing out some rooms. Does anyone have any experience in the Orlando area and want to share their experience? I want to know if it would be a smart idea and be worth trying out short term rentals. I am looking in areas around downtown or around UCF.

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Carlos H DeOliveira
RI · Member since 2019 · 64 posts · 48 votes
6y

@Quentin Moore -  Sorry I was away for a few days and didn't check biggerpockets.

All my properties are 4BDRs, my biggest concern with 5bdrs/6bdrs becomes parking. The ideal vacation rental in Davenport should have 4+ bedrooms, a private pool and a low cost HOA for maximum returns. I'm not a fan of 3BDR due to high inventory, low nightly rate and not that much less expensive than a 4bdr.

My 4 bedroom homes accommodate 8-10 guests, my HOA is very strict on street parking and often times I have issues with Guests having 3 vehicles and parking one on the street, sidewalk and etc... I use the garages as game rooms so there are no alternatives for parking.

If I was to purchase a 5BDR home, I would set it up so it can accommodate 14 guests, 3 rooms with king/queen and 2 rooms with double bunk beds for up to 4 kids in each room, this will allow you to host up to 5 families pushing your nightly rate and maximizing your revenue. The biggest challenge is finding a property that has parking for 4-5 vehicles.  

As far as price point goes, it all depends on the number of bedrooms you are looking for. I suggest doing the math backwards so you can take into account the HOA costs. The total cost for my properties after furniture appliances and etc.. is about 260,000 , my HOA fee is $180 and it includes internet, cable, and lawn service.

It costs about $480 per $100,000 financed, so if I was buying a property that Internet + HOA = $660 vs $180, in my eyes I need to buy that property for $160,000 to achieve the same cashflow as above. I know this can be a confusing answer but the point I'm trying to make is that in Florida no all properties are the same, HOA fees and other fees are very important when calculating your return.

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  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    6y

    @Alyssa Lukish if the property is located in the city of Orlando you will be required to live there and you will only be able to rent less than half the rooms. Orange county does not allow STR. If you buy in Osceola county you would be fine.

    [email protected]407-590-9858
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    5Reply
  • Carlos H DeOliveira
    RI · Member since 2019 · 64 posts · 48 votes
    6y

    @Alyssa Lukish, I have 3 STR in Polk County, they are vacation homes for families visiting Disney. They do extremely well.

    Davenport is a pretty good area to be in.

    Are you set on Orlando?

    4Reply
  • Quentin Moore
    Member since 2020 · 15 posts · 13 votes
    6y

    Carlos H DeOliveira, what selling price and number of bedrooms do you recommend for a STR in Davenport? I'm interested in buying an investment property there.

    0Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    @Quentin Moore you need to tag @Carlos H DeOliveira or he may not realize you have asked him a question.

    0Reply
  • Quentin Moore
    Member since 2020 · 15 posts · 13 votes
    6y

    @Brian G. Thanks. I tried to do that but it didn't work. I don't know if my browser was broken at that moment or if there was a restriction on my first post in the forum. Thanks for tagging him. :-)

    0Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    @Quentin Moore you’re welcome. Every now and then I have an issue doing that as well.

    0Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    @Quentin Moore PS, it’s all about “heads and beds” imo, ie sleeping capacity is the main driver of gross revenue in VRs

    0Reply
  • Quentin Moore
    Member since 2020 · 15 posts · 13 votes
    6y

    @Brian G. I initially wanted to get two 3 BR STRs. I am now evaluating whether I should start with one 5-6 BR STR instead. The discount COVID-19 nightly rates are not helping the analysis. :-)

    0Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    @Quentin Moore the only twist to what I said is that large properties that sleep 12-16+ are usually occupied by multiple households/families. Not sure if bookings in your market have slowed for the 5bd+ properties due to Covid or not. Just one more consideration.

    0Reply
  • Carlos H DeOliveira
    RI · Member since 2019 · 64 posts · 48 votes
    6y

    @Quentin Moore -  Sorry I was away for a few days and didn't check biggerpockets.

    All my properties are 4BDRs, my biggest concern with 5bdrs/6bdrs becomes parking. The ideal vacation rental in Davenport should have 4+ bedrooms, a private pool and a low cost HOA for maximum returns. I'm not a fan of 3BDR due to high inventory, low nightly rate and not that much less expensive than a 4bdr.

    My 4 bedroom homes accommodate 8-10 guests, my HOA is very strict on street parking and often times I have issues with Guests having 3 vehicles and parking one on the street, sidewalk and etc... I use the garages as game rooms so there are no alternatives for parking.

    If I was to purchase a 5BDR home, I would set it up so it can accommodate 14 guests, 3 rooms with king/queen and 2 rooms with double bunk beds for up to 4 kids in each room, this will allow you to host up to 5 families pushing your nightly rate and maximizing your revenue. The biggest challenge is finding a property that has parking for 4-5 vehicles.  

    As far as price point goes, it all depends on the number of bedrooms you are looking for. I suggest doing the math backwards so you can take into account the HOA costs. The total cost for my properties after furniture appliances and etc.. is about 260,000 , my HOA fee is $180 and it includes internet, cable, and lawn service.

    It costs about $480 per $100,000 financed, so if I was buying a property that Internet + HOA = $660 vs $180, in my eyes I need to buy that property for $160,000 to achieve the same cashflow as above. I know this can be a confusing answer but the point I'm trying to make is that in Florida no all properties are the same, HOA fees and other fees are very important when calculating your return.

    6Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    6y

    Hi @Quentin Moore I agree with Carlos. I would look at 4-5 bedroom homes. Right now the larger properties are experiencing lots of problems because they are used by some as party houses, while big family groups aren't traveling long distances for reunions. While the "party guests" can be weaned out, it does cause some extra headaches. I would broaden my search to Kissimmee as well, communities such as Windsor Hills, Windsor Palms, Emerald Island and Encantada. Proximity to Disney means a lot.


    4Reply
  • Lance Jorgenson
    Investor · 84123 · Member since 2020 · 50 posts · 27 votes
    5y

    @Alyssa Lukish  Where you able to purchase a Short Term rental property? If so how has it been working out for you? 

    I am starting to think of how I want to live when I retire and would Love to have a Short Term Rental Properties around the World. 

    Thinking, Florida, Hawaii, Utah, Costa Rica, Italy 

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
    5y

    @Carlos H DeOliveira can t you avoid hoa fees by building in areas where there is none? Regarding parking, is there no way to add blacktop or concrete to driveway increasing parking?

    1Reply
  • Carlos H DeOliveira
    RI · Member since 2019 · 64 posts · 48 votes
    5y

    @Todd Goedeke a lot of my guests are internacional guests, they like the fact that the property is inside of a community. You would be surprised how much online shopping your guests will do and being part of a community gives them a sense of security.

    As far as parking, my HOA is super strict, you can barely add a ring camera, which keeps the community very nice and clean but can be a pain sometimes.

    Building in a different area I haven't considered. All of my homes have private in ground screened pools, building them new would most likely add around 80k to the cost, add time, reduce cashflow, and my HOA costs are minimal. Currently my HOA dues are $140/month and it includes cable, high speed internet, and landscaping.

    0Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    5y

    @Todd Goedeke here in Orlando, being in a HOA managed community means your home will come with the resort type amenities most of our guests are looking for. Community pools, clubhouses, even lazy rivers and water slides. Not to mention better security, maintenance etc. Sure, you can save on HOA fees but you will get much higher rates and better services for your guests in a well managed community- at least here in the Disney/Orlando market.

    0Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Lance Jorgenson

    Great idea of you to buy a portfolio of short-term rental properties around the world. I'm doing exactly that so feel free to reach out if you decide to go in that direction and need help.

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
    5y

    @Alice Horn community pools are preferred over individual pools? 
    Are there any developments owned by investor groups and co managed and hosted by a hotel chain( Marriot,Hilton,etc)?

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
    5y

    @Lance Jorgenson can you have just as much enjoyment owning 5 STVRs in the US to maximize profits thru ease of management . Then use those profits to stay around the world in others STVRs.

    0Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    5y

    @Todd Goedeke guests like having BOTH options. Our top booking homes do have their own pools, but guests also have the option of heading out to the community pool for a change of pace. They can grab a cocktail at the bar, while their kids play in the pool or on the water slide. So it's the best of both worlds -- the convenience of home but with resort like amenities. 

    There are hotel-managed vacation homes communities, but they are typically far more expensive to buy in and the hotel group takes a larger cut of the income.

    0Reply
  • Tola Kehinde
    Rental Property Investor · Vaughan, ON · Member since 2018 · 19 posts · 10 votes
    5y

    Thanks for your insight @Alice Horn and @Carlos H DeOliveira greatly appreciated!. I am about to close on my first vacation/STR IN Clermont from a builder.I will need some recommendations/referrals on furnishing/interior decor from a local designer.Pls PM me if you have any suggestions.

    0Reply
  • Todd Goedeke
    Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
    5y

    @Alice Horn I am aware of investors who lease their property to management company who in turn furnished the property. The investor gets a 1O%+ return on new construction. Property manager makes fixed monthly payments to owner assuming all operational risk, contents risk and marketing risk. This seems to be much fairer owner-manger arrangement. Retirement Investors are looking for hands off RE where they can collect a guaranteed check with no business owner risk .

    0Reply
  • Jessica Wygal
    Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
    5y

    @Carlos H DeOliveira extremely helpful responses, thank you for sharing. Do you mind also sharing what communities you are in?

    0Reply
  • Carlos H DeOliveira
    RI · Member since 2019 · 64 posts · 48 votes
    5y

    @Jessica Wygal

    I sent you a PM

    0Reply
  • Sandrine Li
    Member since 2021 · 12 posts · 0 votes
    5y

    @Quentin Moore, did you end up buying your STR property? If so, where? Would love to start doing the same, and to hear from your experience! You can PM me.

    @Carlos H DeOliveira and @Mike Lambert, i would love to get started on STR with my first one in the Davenport area. Would appreciate any tips on how to get started.

    0Reply
  • Quentin Moore
    Member since 2020 · 15 posts · 13 votes
    5y

    @Sandrine Li I didn't purchase an STR yet. I will close on a sale of a home next month and use the proceeds to buy an 8BR house in ChampionsGate. Please note that the prices are high right now.

    0Reply
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