Purchasing a STR in the Kissimmee/Championsgate Disney area

Purchasing a STR in the Kissimmee/Championsgate Disney area

Member since 2021 · 2 posts · 9 votes

We are looking to purchase an STR in the next month or two in the Kissimmee/Davenport/Disney area. After a ton of research we are starting to hone in on some specific areas and types of properties. I would like some input about typical occupancy rates and typical average pricing. We've done a ton of research on airbnb to see the typical rates but it's hard to judge accurately. Here is our current plan:

Purchase at minimum a furnished 4br townhouse with splash pool in a gated resort with amenities - purchase price around $330-$390k

We would put about 10-15k into setting it up for STR, theming the rooms (my wife is an interior decorator and already has a plan)/automating the property for remote management/adjusting furnishing if needed etc.

We plan to self manage remotely with a little help locally. We've had rental properties in the past, but this is our first STR, so I know the game is totally different.

It seems that these types of properties are not just going up on a monthly basis but they are going very fast as well.  We have looked at properties in ChampionshipGate, Paradise Palms, Storey Lakes as well as few others that fit within our plan.

I'd like to connect with a few of you that are experienced with self management with these types of properties to get your opinion about realistic rates, occupancy, cash flow and revenue.


Tony  

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Flipper/Rehabber · Yorktown, VA · Member since 2018 · 6 posts · 5 votes
4y

Hey Tony,

I am a real estate agent that works in that area, I grew up around there, and my parents owned 6 STRs at one point in that zone. I have also managed a 150 rental portfolio remotely. So I am pretty familiar with what you are discussing. 

First off, I think taking the step toward exploring different kinds of investing is great. It is always good to expand your horizons. On top of that, if you do things right there is definitely money to be made on STRs. 

However, STRs are also way more work and more expensive to operate than you would guess. Many of them are newer which means you have fewer that struggle with the issues of just being worn out. Unfortunately, you deal with people breaking things way more often and you deal with tenant turnover once or twice or even 3 times a week instead of once every 1-3 years. It’s annoying when you turn a rental property after 2 years and their kids have wrecked the carpet. It is a whole different level of rage when a family reunion rents out your house for 2 days and ruins 1 year old carpet, smashes have the dishes, and breaks the door off a cabinet (I speak from experience).

After experiencing the industry, I find that people do far better when they think of it like buying a small business more than like a typical rental. This is not something you are going to want to be doing on a daily basis forever. I have not seen anyone self manage for an indefinite amount of time without getting burned out. Make sure the model doesn’t rely on you to do the work or you will come to hate it. If you feel like the numbers are at least break even with someone else taking care of it so you can take a break that should be fine.

As far as pricing and occupancy, those two go hand in hand. People have vastly differing products for different prices. They also differ for times of the year. Many of the communities have sites they use to market the community as a whole so you can do some research on those to get a feel for pricing.

No matter what happens it will be a growing experience. Let me know if you have something specific you need to know.




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  • Walnut Creek, CA · Member since 2020 · 285 posts · 318 votes
    5y

    Hey Tony, I can't speak to Kissimmee specifically but happy to help provide some tips on self-managing remotely. Feel free to DM me if you want to chat

  • Flipper/Rehabber · Yorktown, VA · Member since 2018 · 6 posts · 5 votes
    4y

    Hey Tony,

    I am a real estate agent that works in that area, I grew up around there, and my parents owned 6 STRs at one point in that zone. I have also managed a 150 rental portfolio remotely. So I am pretty familiar with what you are discussing. 

    First off, I think taking the step toward exploring different kinds of investing is great. It is always good to expand your horizons. On top of that, if you do things right there is definitely money to be made on STRs. 

    However, STRs are also way more work and more expensive to operate than you would guess. Many of them are newer which means you have fewer that struggle with the issues of just being worn out. Unfortunately, you deal with people breaking things way more often and you deal with tenant turnover once or twice or even 3 times a week instead of once every 1-3 years. It’s annoying when you turn a rental property after 2 years and their kids have wrecked the carpet. It is a whole different level of rage when a family reunion rents out your house for 2 days and ruins 1 year old carpet, smashes have the dishes, and breaks the door off a cabinet (I speak from experience).

    After experiencing the industry, I find that people do far better when they think of it like buying a small business more than like a typical rental. This is not something you are going to want to be doing on a daily basis forever. I have not seen anyone self manage for an indefinite amount of time without getting burned out. Make sure the model doesn’t rely on you to do the work or you will come to hate it. If you feel like the numbers are at least break even with someone else taking care of it so you can take a break that should be fine.

    As far as pricing and occupancy, those two go hand in hand. People have vastly differing products for different prices. They also differ for times of the year. Many of the communities have sites they use to market the community as a whole so you can do some research on those to get a feel for pricing.

    No matter what happens it will be a growing experience. Let me know if you have something specific you need to know.




  • Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes
    4y

    @Tony Plumb Hows this going? Have you heard of AirDNA? This one will give you all your asking for as far as occupancy, daily rate, etc. Nice thing about that area is the amount of data available is staggering due to the amount of STR in the area.

    We just closed on an 7 br investment in Kissimmee with partners. Renovating at present and going live in two weeks.  Feel free to reach out if you have questions or need some contact recommendations.

  • Property Manager · Orlando Kissimmee, Daytona Beach & Cocoa Beach · Member since 2016 · 331 posts · 166 votes
    4y

    Greetings, Toni. I have my own vacation rental in Kissimmee, and my office manages short terms around Disney. Maybe I can help to answer some of the questions and share opinion. 

  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    4y

    @Tony Plumb I'm looking to do the same thing. Please keep this thread updated so we can learn from your experience. Thank you.

    McCaw Property Management4.4907 Reviews
  • Member since 2021 · 2 posts · 9 votes
    4y

    Thanks everyone for the comments.  We are set to close on a place in Champions Gate in November.  We will be doing some tweaks and renovations to get it ready the way we want and hope to be live right after Thanksgiving.  I’ll keep you posted on how things go.  

  • Member since 2021 · 9 posts · 7 votes
    4y

    Congratulations, @Tony Plumb! Looks like you'll get it right in time for the hot season! Keep us updated!

  • Member since 2020 · 3 posts · 0 votes
    4y

    @Tony Plumb I live in the general area. I do not self manage, but if I can help in anyway let me know.

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    4y

    I bought one of the 8 BRs in Champions Gate this year and themed it out all Disney style, which I think is a necessity in this market.

    I just launched it a couple weeks ago and already have about $10k on the books for Nov and $11k for Dec.  Shoot me a PM if you have any questions, happy to help fellow BP members entering the market.

    Also make sure you note that AirBnB/VRBO collect/remit Florida taxes in the area, but DO NOT collect Osceola tourist taxes (about 6%).  I see that most new listings are not charging this which means they're going to get hit with a surprise tax bill at the end of the year.

    Cosmic Vacations4.9172 Reviews
  • Giovanni PisanoPro Member
    Real Estate Agent · Pembroke Pines, FL · Member since 2019 · 10 posts · 2 votes
    4y

    @Ryan Moyer

    I’m curious how much an 8 bedroom is in that area? Are you willing to share your numbers?

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    4y
    Originally posted by @Giovanni Pisano:

    @Ryan Moyer

    I’m curious how much an 8 bedroom is in that area? Are you willing to share your numbers?

    I bought it at 568k in May and renovated it, going live in October.

    The same house is probably closer to $650k now.

    "Renovations" were an arcade garage build, and two Disney themed rooms with custom bunk beds, slide, etc.  I spent $20k on the arcade garage, $20k on the main theme room, and $5k on the other more lightly themed room.

    Cosmic Vacations4.9172 Reviews
  • Giovanni PisanoPro Member
    Real Estate Agent · Pembroke Pines, FL · Member since 2019 · 10 posts · 2 votes
    4y

    @Ryan Moyer

    Those numbers look great, congrats. Thank you for sharing. How far is it from Disney?

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    4y
    Originally posted by @Giovanni Pisano:

    @Ryan Moyer

    Those numbers look great, congrats. Thank you for sharing. How far is it from Disney?

     It is in Champions Gate.  So about 9 miles, or 45 minutes with traffic :P

    Cosmic Vacations4.9172 Reviews
  • Santa Rosa Beach, FL · Member since 2018 · 81 posts · 67 votes
    4y

    Hello. We own a 4 bedroom townhome in Kissimmee for the past 2 years and business is amazing this year. Last year was rough obviously but looking on the mend. 

    We have been averaging $1000 the past year in cash flow and stay 90-95% booked. We self manage and have been traveling all around the country this year. I probably spend 1 hour max a week on handling issues but I spent a TON of time automating everything.

    Feel free to message me with any questions. 


  • Member since 2019 · 448 posts · 306 votes
    4y
    Originally posted by @Ryan Moyer:
    Originally posted by @Giovanni Pisano:

    @Ryan Moyer

    I’m curious how much an 8 bedroom is in that area? Are you willing to share your numbers?

    I bought it at 568k in May and renovated it, going live in October.

    The same house is probably closer to $650k now.

    "Renovations" were an arcade garage build, and two Disney themed rooms with custom bunk beds, slide, etc.  I spent $20k on the arcade garage, $20k on the main theme room, and $5k on the other more lightly themed room.

    Ryan, this is awesome man. You did to that house what I keep suggesting to people with the game rooms and themed bedrooms. You must be cash-flowing at least $3,000 a month I would assume right?

    I have 2 in the area myself. Can I ask where you got your arcade games from? I have been finding stuff on Facebook marketplace for a while but I want someone who is a professional and a technician to fix them if anything goes wrong.

    -Matt

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    4y
    Originally posted by @Matt Nico:
    Originally posted by @Ryan Moyer:
    Originally posted by @Giovanni Pisano:

    @Ryan Moyer

    I’m curious how much an 8 bedroom is in that area? Are you willing to share your numbers?

    I bought it at 568k in May and renovated it, going live in October.

    The same house is probably closer to $650k now.

    "Renovations" were an arcade garage build, and two Disney themed rooms with custom bunk beds, slide, etc.  I spent $20k on the arcade garage, $20k on the main theme room, and $5k on the other more lightly themed room.

    Ryan, this is awesome man. You did to that house what I keep suggesting to people with the game rooms and themed bedrooms. You must be cash-flowing at least $3,000 a month I would assume right?

    I have 2 in the area myself. Can I ask where you got your arcade games from? I have been finding stuff on Facebook marketplace for a while but I want someone who is a professional and a technician to fix them if anything goes wrong.

    -Matt

    Hey Matt,

    Expenses are high in the area.  My monthly expenses (rough estimates for some of these) are...

    $3100 - Mortgage

    $450 - HOA (includes cable/internet and trash pickup)

    $1500 - cleaning (varies by month, but expecting this to be around the average as this is what 5-6 turns would cost)

    $400 - Electric

    $80 - water

    $50 - Software (smartBnB, pricelabs, etc)

    = $5580

    Then subtract out any maintenance costs, which it looks like at this place will be fairly regular.

    So at $10k-11k gross for the month I'm expecting ~$4k net.

    I do think December will end up grossing more than $11k once we get to it, and November more than $10k on a typical year (I only went live mid-October so not much time for people to book for November).  I just got an inquiry for another $4500 booking in December so hopefully that person follows through which would make Dec really nice.

    For arcade games I have a contact for that if you want to reach out via DM.  They refurbish them so cheaper than new, and will deliver/setup.  Stock is loowwwwww on those right now though but I'm happy to share their info so you can see if they've got anything.

    Cosmic Vacations4.9172 Reviews
  • Rental Property Investor · Oklahoma City · Member since 2021 · 108 posts · 103 votes
    4y
    Originally posted by @Ryan Moyer:
    Originally posted by @Giovanni Pisano:

    @Ryan Moyer

    I’m curious how much an 8 bedroom is in that area? Are you willing to share your numbers?

    I bought it at 568k in May and renovated it, going live in October.

    The same house is probably closer to $650k now.

    "Renovations" were an arcade garage build, and two Disney themed rooms with custom bunk beds, slide, etc.  I spent $20k on the arcade garage, $20k on the main theme room, and $5k on the other more lightly themed room.

    Curious what kind of loan you chose. What was you downpayment percentage and total for the purchase price? Trying to total up how much you came out of pocket up front to get this thing rolling.

    Also can you maybe provide a link to your airbnb listing? Love to see pics of the arcade room/themed room you did.

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    4y
    Originally posted by @Wilson Vanhook:
    Originally posted by @Ryan Moyer:
    Originally posted by @Giovanni Pisano:

    @Ryan Moyer

    I’m curious how much an 8 bedroom is in that area? Are you willing to share your numbers?

    I bought it at 568k in May and renovated it, going live in October.

    The same house is probably closer to $650k now.

    "Renovations" were an arcade garage build, and two Disney themed rooms with custom bunk beds, slide, etc.  I spent $20k on the arcade garage, $20k on the main theme room, and $5k on the other more lightly themed room.

    Curious what kind of loan you chose. What was you downpayment percentage and total for the purchase price? Trying to total up how much you came out of pocket up front to get this thing rolling.

    Also can you maybe provide a link to your airbnb listing? Love to see pics of the arcade room/themed room you did.

     Here is my listing: https://www.airbnb.com/rooms/5...

    I'll shoot you a DM with some costs.

    Cosmic Vacations4.9172 Reviews
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