Short term rental (STR) purchase: Davenport, Kissimmee, or other?

4 Replies

I want to invest in a short term rental (STR) or two. Eventually, I plan to move from DC to Orlando and temporarily live in one of the STRs while I search for a non-STR home. I have these questions:

1. Should I buy in Davenport, Kissimmee, or another location? I can afford up to $300K but if I can get good cash flow at $200-$250K, I'd prefer to do that, so that I can eventually get a second STR.

2. What number of bedrooms do you recommend? Should I go for 4-6 bedrooms or is three ok? 

3. While I know Davenport and Kissimmee allows STRs, is there a way to tell if a particular home listing is zoned for STR?

4. How much in terms of percentage have you lowered your nightly rates due to COVID-19? I'm trying to get a sense of normal nightly rates to estimate potential cash flow.

Thanks!

Quentin.

Originally posted by @Quentin Moore :

I want to invest in a short term rental (STR) or two. Eventually, I plan to move from DC to Orlando and temporarily live in one of the STRs while I search for a non-STR home. I have these questions:

1. Should I buy in Davenport, Kissimmee, or another location? I can afford up to $300K but if I can get good cash flow at $200-$250K, I'd prefer to do that, so that I can eventually get a second STR.

2. What number of bedrooms do you recommend? Should I go for 4-6 bedrooms or is three ok? 

3. While I know Davenport and Kissimmee allows STRs, is there a way to tell if a particular home listing is zoned for STR?

4. How much in terms of percentage have you lowered your nightly rates due to COVID-19? I'm trying to get a sense of normal nightly rates to estimate potential cash flow.

Thanks!

Quentin.

Hey Quentin,

I have 4 rental properties, all in the Davenport / Kissimmee area actually. Can I ask why you are so convinced to do Short term rental? Maybe a buy and rent out the traditional way would be better if you dont have much of a team down in Central Florida yet.

Also your analysis of bedrooms vs. price is really spot on. I'm assuming you did your research. I'd go with the larger one.

 I know the area quite well. If you need a hand feel free to shoot me a PM. I am a new real estate agent as well so I could probably find you something that you want.

Happy Housing,

Matt

@Matt Nico , thanks for your reply.

Ultimately, I'm open to any and all types of investment property. I want to start out with a STR or two because, from what I understand, I can get a cheaper mortgage with a low down payment if I do not plan to put a lease or property management contract on the property. Please let me know if this is correct.

My plan is to use equity from my primary residence to get a vacation home mortgage with only a 5-10% down payment. I would get one vacation home mortgage in my name and one in my wife's name.

I'm not ready to buy at the moment. I want to see what happens with COVID-19. I also want to figure out where to buy and how many bedrooms to buy. I will reach out to realtors once I'm ready to make a purchase. I'll keep you in mind. :-)

@Quentin Moore

I would say to hold off on asking more specific questions like that until you are ready to pull the trigger. There are multiple reasons for this, but the main one being that things could change rapidly from now until when you plan to buy. Maybe bigger houses are in vogue now but in 6 months people will want a more cottage feel.

Also i am not extremely knowledable with lending as of yet, so im not quite sure about the loan for a vacation home.

I think you are on the right track though.

Hi @Quentin Moore . Please reach out to me and see if I can help. I am local to the Davenport area and have sold many homes in this area so I may be able to provide some insight and help you out.