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.
@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.
@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?
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.
@Brian Gerlach 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. :-)
@Quentin Moore you’re welcome. Every now and then I have an issue doing that as well.
@Quentin Moore PS, it’s all about “heads and beds” imo, ie sleeping capacity is the main driver of gross revenue in VRs
@Brian Gerlach 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. :-)
@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.
@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.
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.